Finding Success in the Tampa Condo Market
No longer just a cheaper alternative for single-family home hunters or baby boomer retirees, the Tampa condo market is now filled with a growing variety of options. The spectrum of condominium properties ranges from luxurious high-rise penthouses that rival multi-million dollar single-family homes, to hotel condominiums that allow owners to experience a VIP lifestyle, to urban lofts that cater to young professionals. Tampa’s growing condo market offers options for every type of buyer. Luxury condo living is in demand for baby boomers and retirees throughout the Tampa condo market. These luxurious residences often offer concierge service, doormen, 24-hour security personnel, and maid service. For health and recreation services, luxury condominiums include spas, swimming pools, top-of-the-line fitness centers, as well as tennis and racquetball sports; and many many more Of course, luxury does not come cheap.
However, a condo does not have to be luxurious or even new to be desirable. Developers have been converting attached rental stock into condominium communities, recognizing the need for affordable housing and rising construction costs, as well as land restrictions in the Tampa condo market. Condo conversions have never been stronger than in 2004. New York research firm Real Capital Analytics Inc. reported an increase in condo conversion sales nationwide of more than $11 billion or 77,193 units sold in 2004 to more than $28 billion or 182,742 units sold in 2005. This year the trend continues to gain momentum.
Condo conversions are popular in the Tampa condo market with empty nesters and retirees looking for a lower cost of living, safe facilities and less maintenance. The usual opinions of real estate experts state: “Instead of tearing something down, why not refurbish and rehabilitate the property?” and “If an existing property is already located near schools, jobs, recreation, and other lifestyle options, the question really should be, why not convert it?”
Many apartment owners have chosen to convert their apartment building into condominiums throughout Tampa. It is quite encouraging for renters to be offered the option to purchase their apartment, or that new buyers can purchase any of the apartment units converted to condominiums. Not only is this great news for a tenant who chooses to buy, but it also makes a huge profit for the apartment owner for their property.
These renters can purchase a comfortable condo at a price substantially lower than most houses. Plus, they may be able to get into the condo with a minimal down payment, and the amortization on their new home may be equal to or slightly higher than what they used to pay for rent.
However, the main reason renters buy when offered a condo is the incredible equity they would build up with the property. As home prices continue to rise throughout Tampa, condo unit owners are certainly benefiting from such price escalation. Even though the condo isn’t exactly the home the owner wants to own, he can apply the equity he earns toward the purchase of another new home at a later time. Some new buyers are realizing that during the period between when they started paying for their condo and the actual closing date for amortization, their unit may have appreciated by at least $50,000.
In fact, there is no single type of condo conversion. But most of these complexes also have a variety of community amenities, such as shared pools, community centers, and golf courses.