Making money through real estate investing can be afickle business. Here's a surprising trend that can putmoney into your pocket.
Traditionally those of us who own rental property lookedupon condos as competition. They offered a relativelylow cost way for renters to move into home ownership.
This demand for condos has fooled many of us. With lowrates of interest on home loans and plenty of moneyavailable... the logical expectation would be that insteadof buying condos, buyers would move into the single family homemarket.
Of course... many of them have done that and home prices continuein an upward trend in many areas. But thousands are choosing condosrather than a detached home.
The National Association of Realtors reports that condosales averaged less than 200,000 annually in the 1980s.That number jumped to 500,000 in the 1990s... and overthe last three years has rocketed to over 800,000 sales eachyear.
Take note of this.... In quarter number two of 2004,condo sales nearly hit the 1 million mark.
Right now the condo market is hot in most parts of thecountry. Prices have reached record levels andcontinue to climb.
While condo values go up... the rental market has gone soft.That has prompted many of the biggest apartment owners tobegin converting apartment complexes into condos.
They are converting their own complexes while looking forother existing buildings to buy and convert.
The business has become so profitable that many of thesebig guys are slowly moving out of the apartment businessby either converting owned properties, buying others... orbuilding new condo developments.
This is a wake up call for the small real estate investor.Start looking for motivated condo owners!
But watch out for this! Many lenders will stop financingcondos if the percentage of non-owner occupied units buildingreaches a level they consider dangerous. This means that youcould have trouble selling units you own at some time inthe future if you're not careful.
Stay in touch with the condo association andbe ready to move quickly if too many investors are buyingunits in the development.
You can use most of the same tactics you use to buy singlefamily homes with condos.
Two of the most powerful tools are lease/options and buying"subject to" Click Here
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