Condo conversions or a roll of the dice
As you may recall, last month I placed a friendly bet with one of my real estate agents. Click on the link to read the blog post Boston real estate development/gambling bet. Today, is December 1, 2008 and I would like to give you an update.
*The real estate developer has a monthly mortgage payment due today for aprox $24,000.00.
*Monthly bills such as elec, gas, insurance ect. (and at some point a heating oil bill is due).
*Of the three units that were under agreement in Nov. only one closed. The other two fell apart.
*9 units are still available for sale.
*After three months the listing agent and developer are holding firm on the asking prices for the condos.
Today, the listing agent (not associated with this blog) called me to see if my office could rent two of the condos as short-term rentals.
After three months, one sale, do you think this successful real estate developer will once again prevail?
My thoughts, I give this developer a lot of credit for holding firm on his asking price. I think I would of lowered the asking price from $379,000 to $369,000. The monthly costs would keep me up at night. I guess that’s why I’m not into condo conversions or real estate development.