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Small Condos Are Not Selling
Description
On today’s show, we are talking about some of the dynamics that are showing up in the small investor segment of the real estate market. We are starting to see anecdotal boots on the ground evidence of properties being offered for sale that in my opinion are experiencing negative cash flow. In many major cities a small but significant percentage of condominiums, between 20-25% of new construction condos are owned by smaller individual investors who in turn put these properties into the rental market. Overwhelmingly these smaller condo units are investor owned. You often see the smaller lower cost units in condo buildings being purchased by investors, typically in preconstruction, prior to the building even breaking ground. In my home city these smaller units were really designed to maximize the revenue per square foot. These are small units! Many are between 400SF-500SF. These studio apartments are often very difficult to furnish.
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Host: Victor Menasce
email: podcast@victorjm.com