Have you made the decision to venture into the amazing world of condo conversion investing? If so, you need to find the best location for your project. Since a condo conversion is not the kind of undertaking that can be handled from a distance, you will most likely be limited to finding a property in or near the city where you live. Some solid research into the market trends in your area will help you determine if your city is a prime location for a condo conversion.
Here’s a brief look at four things you should consider before deciding on a location:
You will need to work closely with, and have the cooperation of, town and regional authorities. Speak to several officials and get a feel for how difficult the legal aspects of condo conversions might be in your city. Some cities are quite open minded regarding condo developments and others will fight them tooth and nail. There is little logic in trying to invest where the authorities will be constantly working against you.
Try o look for an area where real estate is in an upward swing. Are there new jobs in the area creating growth? Are people relocating to the area for certain lifestyle changes that would fit well with a condo purchase? Is there a shortage of housing that would increase the demand for the style of housing you’ll be offering? Perhaps it is an area that is trying to attract a new crowd of buyers. Evidence of this type of rejuvenation can be seen in older buildings being refurbished and remodeled.
The right area for a condo conversion is most likely going to be where condos are already selling. Chances are, an area dedicated to upscale single family homes will not be a great location for a high rise condo building, nor will a highly commercial area be a good target. That is not say that it can’t work, but the odds are better for success in an area where condominiums are already in existence and moving in the market.
Proximity to amenities is also important when deciding on the right area for a condo conversion. Typically, condominium owners enjoy an easy, carefree lifestyle. They have elected to trade the traditional homeowner responsibilities such as lawns, gardens and renovations for the freedom to explore their interests and pastimes. As a result they like to be close to, and often even within walking distance of, shops, theaters, restaurants and other amenities. Access to public transportation for things that are not close by should also be available.
While a condo conversion can be successful in many locations, your overall success and your return on investment is going to be greater in an area that is the most condo friendly.