Condos Command a Crowd

Recent years have seen an explosion in the amount of multi-unit housing on the market. With new builds starting everyday, it's clear the condo market is hot, hot, hot. Today's units appeal to a wide variety of people for a number of reasons.

Price may be a consideration - lower cost condos and townhouses can be a viable option for people who are priced out of the traditional home market. Buyers often see these as a way to get into the market. Buy a condo, build equity and in a few years they are ready to move up to a home. But don't be fooled - condos are not just for first timers. In fact, many condos are priced in the luxury market and far exceed the cost of a regular home. The top priced properties in the condo category are often lofts, with ceilings soaring as high as 25 feet, floor to ceiling windows, wrap around balconies and stunning views and beautiful architectural details. In new builds bamboo floors, granite kitchens, stainless steel appliances, and terraces are often standard features.

Condos are also popular with urban professionals who aren't interested in wasting their free time on a long commute but who can't afford a house downtown. With longer commute times linked to higher stress levels, this is a no brainer - who needs it? Move to town and walk to work, shopping, restaurants and nightlife. Embrace the freedom an urban lifestyle can provide.

The biggest draw to condo living is often the lifestyle. Life is hectic for most of us, and many people just want to simplify. The thought of condo living appeals to those looking for a low maintenance lifestyle. There are fewer security concerns, lower day-to-day costs, and less upkeep time required. You might never have to mow a lawn again. But don't think that having a condo means you'll be missing out on that garden - many developments offer enchanting landscaping and individual terraces where your green thumb can run wild. With smaller plots, your natural creations will be easier to maintain, which gives you more time to enjoy the space.

Home improvement junkies also like the lower buying price and reduced maintenance fees involved with condos because it means they can spend more on the interior of the unit. Condos can become a unique work of interior design. And in new builds, the many upgradeable options allow buyers to specify the finishing details of the condo.

Then there are the extras: in addition to the amazing details of the individual units, many condo developments, especially in the higher price brackets, offer amenities that can make it seem like you're living in a high-price hotel. Today's buyer can choose between developments that offer extras like media rooms, fitness clubs, heated swimming pools, hot tubs, fire pits, game rooms. Some condos come with a communal staff: door attendants, maintenance staff, a concierge and valet parking.

Condos have become synonymous with an increasingly cosmopolitan crowd. With all the available extras, the increasing availability of condos is no surprise. You too can have this lifestyle. Enjoy the benefits of home owning without the responsibilities of a traditional house. Let your condo set you free.

Source : http://ezinearticles.com/

Aventura Florida-Sunny Isles: the right place for condo developers

New condo projects are always welcome and coming up in Aventura Florida and Sunny Isles. According to experienced Real Estate Agents, Aventura and Sunny Isles are the right places for developers to be in. There are a very long list of developers out there claiming for fame and fortune, but we will cite just one today: Jorge Perez. Born in Argentina. He is the chairman and majority owner of the Related Group of Florida. Perez is also an associate of a Real Estate Company based in New York City known as Related Companies. Jorge Perez has accomplished a world-class status for advanced work in the construction field, syndication and management of numerous South Florida’s luxury homes. Now, he gets on his biggest development venture to date: a Miami Beach high-rise condominium building and for which he counts with the

cooperation of a stylish and worldwide recognized designer Philippe Starck. Both gave birth to Icon, a luxury condo. There are also other significant and innovative projects like Ocean I and Ocean II at Sunny Isles and Portofino Tower. And, it is expected to get a Boca Grande in Boca Raton; the Ocean III in Sunny Isles; the Slade in Palm Beach and One Miami in downtown Miami. The Related Group of Florida has built more than 200 projects in Florida. Developer Jorge Perez’s company ranks as the third biggest owner of properties in the United States and is a passionate collector of Latin American sculpture and paintings.

Source : http://www.aventuradreamhomes.com/

Financing Your Condo Hotel Unit

A condo hotel (AKA condotel) is a great way to own a luxurious vacation home without the traditional hassles of ownership such as property maintenance and finding renters when you're not using it.

Buying this type of property is similar to purchasing a typical condominium. However, there are a few extra considerations that lenders evaluate when underwriting the loan. Consider the following frequently asked questions about condo hotel unit financing.

How do I qualify for a condo hotel loan?
Most lenders qualify you based on your income and underwrite the file as if it was an investment property. Unlike traditional residential deals, the lender will not count potential rental income from the property for qualifying purposes.

What is the debt-to-income ratio allowed when buying a condo hotel unit?
Overall debt-to-income ratio should be no more than 45%.

Do lenders need to approve the project itself?
Depending on the type of financing you require, the lender may need to pre-approve the project in order to allow certain terms on the loan. Condo hotels are particularly common to urban, popular tourist cities such as Las Vegas, Miami and Chicago so buying a unit in those kinds of location should be straightforward.

Are there any pre-sale requirements?
Most lenders like at 75% of total units under contract before financing a unit in that project. However, certain lenders do not have any pre-sale requirements as long as they have pre-approved the project.

What if there are commercial spaces such as retail and restaurants in the project?
As long as the commercial space and usage is limited, is typical to that area and project, and the project is residential in nature, most lenders will finance your deal.

Are there any minimum unit size requirements?
Most lenders require units to be at least 600 sq. ft., as the larger the unit, the more desirable it is for rental and resale. Some lenders will wave minimum size requirements as long as the project is pre-approved. Others will require that condo hotel units have at least basic kitchen facilities.

Are there any minimum down payment requirements?
Condo-hotels buyers are usually required to put a minimum of 20% down payment although a higher down payment could be required on a larger purchase price. As an example, a lender would offer 80% LTV (loan to value) up to a $350,000 loan amount and $437,5000 maximum purchase price; 75% LTV up to a $650,000 loan amount and $867,000 maximum purchase price; and 45% LTV up to $1 million loan amount and $2.22 million maximum purchase price.

In general, secondary financing is not allowed.

What kind of documents will I need to get pre-approved?
Just like any other residential loan the lender will require documentation about your income and assets and will check your credit (an average middle FICO score of approximately 680 is required though exceptions on lower scores can be made).

Self-employed buyers with complicated or extensive tax returns can qualify using a stated income program, hence streamlining the loan approval process. An interest-only option payment is also available when the buyer is qualified based on interest-only payments.

In order for a buyer to get approved for financing for the purchase of a condo hotel, the property must be a fee simple or a leasehold property:

* Fee simple: Absolute ownership in real property; owner is entitled to the entire property with unconditional power of disposition during the owner's life.

* Leasehold: Estate or interest in real property held by the virtue of a lease. Leasehold refers to land which is leased to the individual(s) who owns the structure.



Source : http://www.condohotelcenter.com/

Florida Beach Resorts - Pros and Cons

Florida beaches are some of the best in the country. Unfortunately, they are also some of the most overcrowded. In the summer, Florida beach resorts are literally packed with tourists and locals, soaking up all the sun that they can. From clothing optional beaches to the most family friendly resort towns, what Florida beach resort you choose is crucial to determining the quality of your experience. If you choose the wrong one, you will practically not be able to make it to the water. That is how crowded a Florida beach can be.

One of the most important things to know is that the most popular destinations are not the best. If you go to a Fort Lauderdale Florida Beach resort, or a Miami Florida Beach, you may expect the water to be cleaner, the people to be more friendly, and the experience to be more convenient. This is not the case. There are so many people on the beach that it is not pleasant for any of them. They throw their garbage around, get up in each other's faces, and generally end up in a foul mood through a combination of hot weather and overcrowding. Going to Florida beach resorts should not be like this. You need a little bit of serenity and a little bit of isolation to really relax and unwind. I don't know why people crowd by the thousands on the beach, but to me it seems insane.

The best Florida beach resorts are a little bit off the beaten path. Finding remote places can be hard on the state of Florida! A lot of it is densely populated, and most of the rest of it is swamp. You do not want to the go to the swamp. You will be slogging through the mud before you can even get into the ocean.

Florida beach resorts are there to make money, and as such they are there to attract as many tourists as possible. Really, the only way to find the uncrowded local beaches is to get a good tour guide. Tour books are also helpful, but I found that so many tourists get a hold of them that the Florida beach resorts that seem to be pristine and untouched one year are swarming with people by the next. I guess the only thing to do is to give yourself a couple weeks in Florida to explore and find the best destinations. That is the best way to travel anyway!

Source : http://www.statssheet.com/

America’s Best Beachfront Resort Values

Edgewater Beach Condominium is the ultimate seaside vacation playground. A magnificent, French Riviera-inspired resort rising majestically beside the sparkling emerald waters, pristine white sands and fiery sunsets of northwest Florida’s extraordinary Emerald Coast.

Our luxurious yet casual one, two and three bedroom vacation condos are filled with comfort and amenities. You’ll love the incomparable floor-to-ceiling ocean vistas from your living room and master bedroom, and the picturesque view of tropical gardens, two shimmering pools and the Gulf of Mexico from your private walk-out balcony or terrace.

Relax or play on our world-class beaches and nearby championship golf courses… stroll through our gorgeous grounds… rediscover romance and strengthen your family bonds. From quiet seaside moments to exciting activities to jazzy and calypso nights, Edgewater Beach Condominium has something special for everyone.

Vacationers and winter guests of all ages return to us year after year to refresh their spirits under our glorious Destin, Florida sun. Because, from a few days to a few months, Edgewater Beach Condominium vacations are America’s Best Beachfront Resort Values.

Source : http://www.edgewaterbeach.com/

Anna Maria Island Beach Condo

From the moment your toes touch the powder white sand beaches of Anna Maria Island you will know you have arrived at a vacation destination like no other. Experience uncompromising luxury. Enjoy over 7 miles of white sand beaches, 150 miles of waterfront, waterfront restaurants, waterfront parks, free trolley service and unlimited shopping. Witness spectacular sunrises over looking Tampa Bay, picture perfect sunsets over the Gulf of Mexico, dolphins playing and endless sunshine. There is so much to do and see all in one place. Things to do!
Whether you are looking for Anna Maria Island Florida hotels, beach rentals, vacation rentals, waterfront rentals or cottage rentals our Anna Maria Island beach rentals condo is the perfect solution for you.

Our luxurious Anna Maria Island vacation rentals condo is an immaculate 2 bedroom, 2 bathroom, first floor condo surrounded by four tropical bodies of water with the Gulf of Mexico to the West, Tampa Bay to the North, Sarasota Bay to the South and Florida's Intra-coastal Waterway to the East.

For your vacation pleasure our Anna Maria Island beach rentals condo provides you with private beach access, private sheltered parking, two spaces, tropical landscaped gardens, heated pool, en-suite washroom off the master bedroom, walk-in closets, air conditioning, two balconies, phone, WIRELESS HIGH-SPEED INTERNET, cable TV, two flat screen televisions, DVD, dining room, full kitchen, dishwasher, microwave, washer, dryer, balcony over looking the heated pool, you can also view the pool, Gulf Of Mexico or Intracoastal Waterway from every room in our luxurious Anna Maria Island Parasailing on Anna Maria Islandvacation rentals condo. With sliding glass doors off the master bedroom and the living room the balcony of our Anna Maria Island beach view condo provides spectacular views of the beach and is the perfect place to relax and watch the parasailor's pass by. You can watch the parasailor's from every room in our luxurious Anna Maria Island beach condo including the living room and master bedroom while watching television.

Imagine waking to the sounds of the Gulf breeze gently brushing over the palms while listening to the sounds of the waves rolling onto the beach and walking miles of powdery white sand beaches where the coastline curves along the gently blue waters of the Gulf.

Source : http://www.annamariaislandcondorentals.com/

FAR: Condo, home sales fell in October

Sales of existing single-family homes and condominiums continued their decline in October, a Florida Association of Realtors report showed.

Prices also fell across the region, except in Miami - where the average existing condo price increased 7 percent and the average home price stayed flat - and Fort Lauderdale, where the average home price inched up 1 percent.

In Miami, the number of existing single-family homes sold in October fell 33 percent, to 367 from 544 the year before. That number fell 27 percent, to 450 from 618, in West Palm Beach-Boca Raton and fell 28 percent, to 428 from 591, in Fort Lauderdale.

The average price of a home in Miami stayed relatively flat, at $354,800, compared with $356,000 the year prior. It inched up 1 percent to $354,000 from $349,400 in Fort Lauderdale, and fell 5 percent to $348,300 from $365,600 in West Palm Beach-Boca Raton.

Near South Florida, the number of homes sold:

* fell 36 percent, to 405 from 630, in Fort Meyers-Cape Coral, as prices decreased 4 percent to $239,300 from $249,800.
* fell 41 percent, to 218 from 367, as prices decreased 17 percent, to $201,000 from $242,400, in Fort Pierce-Port St. Lucie.
* fell 30 percent, to 361 from 515, as prices decreased 11 percent, to $189,400 from $213,300, in Melbourne-Titusville-Palm Bay.
* rose 4 percent, to 27 from 26, as prices decreased 14 percent, to $450,000 from $523,500, in Naples-Marco Island. However, information for the area is not reliable, as the numbers are only from the Marco Island Association of Realtors. Data from the Naples Area Board of Realtors and Association of Real Estate Professionals were not included.
* fell 33 percent, to 168 from 251, as prices decreased 11 percent, to $183,300 from $206,300, in Punta Gorda.

Statewide home sales fell 29 percent, to 9,165 from 12,846, and prices decreased 8 percent, to $222,100 from $242,700.

In Fort Lauderdale, the number of condominiums sold fell 27 percent, to 424 from 580 the year before. In Miami, that number fell 14 percent, to 436 from 508, and in West Palm Beach-Boca Raton it fell 12 percent, to 392 from 447.

The median price for a condominium in Boca Raton-West Palm Beach fell 30 percent, to $158,900 from $225,500, and 24 percent in Fort Lauderdale, to $159,300 from $210,100. It increased 7 percent, to $266,300 from $250,000, in Miami.

Near South Florida, the number of condos sold:

* fell 28 percent, to 105 from 145, in Fort Myers-Cape Coral, as prices decreased 28 percent, to $195,800 from $270,700
* fell 13 percent, to 46 from 53, in Fort Pierce-Port St. Lucie, as prices stayed flat at $225,500
* fell 10 percent, to 83 from 92, in Melbourne-Titusville-Palm Bay, as prices decreased 7 percent, to $166,300 from $178,300.
* fell 7 percent, to 25 from 27, in Naples-Marco Island, as prices decreased 22 percent, to $375,000 from $483,300. However, information for the area is not reliable, as the numbers are only from the Marco Island Association of Realtors. Data from the Naples Area Board of Realtors and Association of Real Estate Professionals were not included.
* fell 63 percent, to 21 from 56, in Punta Gorda, as prices fell 44 percent, to $170,000 from $305,600.

Condo sales across the state fell 20 percent, to 2,819 from 3,508. Prices fell 8 percent, to $192,400 from $209,500.

Source : http://southflorida.bizjournals.com/

Florida Beachfront Vacation Rentals

The mention of beaches and such riches brings to mind only Florida – the sunshine state – where there is no shortage of exquisite sun-kissed beaches or of charming beachfront and oceanfront vacation homes. The beaches of Florida are not limited to just the coastline of the mainland; there are a large number of barrier islands as well. So, vacationers seeking a beach break in Florida can choose from the beachfront vacation homes on the Atlantic coast, on the coast of the Gulf of Mexico, or on the shores fronting the Intracoastal Waterways. Beachfront vacation homes in Florida can be found in regions such as Miami Beach, Amelia Island, Cape Coral, Treasure Island, Fort Lauderdale, Santa Rosa Beach, Destin, Cape Canaveral and the Space Coast, as well as in the region of the Florida Keys.

With the boom in the online vacation rental industry, finding a beachfront or oceanfront vacation rental in Florida is not difficult either. A1floridarentalvacation.com offers visitors with the options of searching vacation rentals in the different regions of Florida. Search results can be narrowed down by entering your preferences which include the location and type of vacation home, and any special amenities including pet-friendly, wheelchair friendly, smoking allowed etc. You can choose a property yourself by checking out its photographs, reading its description, amenities, and getting to know about its rates. Moreover, you can directly contact the vacation rental owner and book your home for your vacation. So, happy browsing and we hope that you can easily find your dream vacation home for the beach vacation of your lifetime.

Source : http://www.a1floridarentalvacation.com/

Miami Beach Florida real estate

Miami Beach Florida real estate and South Beach Fl real estate have become one of the most popular real estate investments in the world

Miami Beach Prestige Realty is a high performing real estate firm that achieves exceptional results for its clients. Our Miami Beach real estate agents are dedicated to servicing all your real estate needs.

Affluent buyers from around the world have converged to the South Florida real estate market to purchase vacation properties, condominiums, single family homes, villas on the Atlantic ocean, mini mansions on the Intracoastal Waterways, and second homes, in areas like Palm Beach, Fort Lauderdale, Golden Beach, Sunny Isles Beach, Miami Beach, South Beach and the surrounding areas of Bal Harbour and Aventura.

Miami Beach Prestige Realty specializes in affluent and luxury properties in Miami and its surrounding most exclusive neighborhoods including Star Island, Fisher Island, Tahiti Beach, Indian Creek, Golden Beach, Bal Harbour, South Beach, Key Biscayne, Brickell, Gables Estates, Coconut Grove, Aventura, Hallandale Beach, Hollywood Beach, among others, in Miami, and Hillsboro, Rio Vista, Harbor Beach, Lauderdale-by-the Sea, Las Olas and Lighthouse point, in Fort Lauderdale.

Miami Beach Prestige Realty offers superior Miami Beach Florida Real Estate, South Beach Florida Real Estate service for buying and selling homes, condos, and villas in South Florida. We have sold in some of the most prestigious & expensive residential condos to date in Miami Beach, South Beach and surrounding areas. Let our local experienced Miami Beach real estate agents be your guide for your next home purchase in Miami. If you would like to list your own property for sale with Miami Beach Prestige Realty, please contact us at +1-305-785-6480, E-mail: erena@bellsouth.net

Many of the people buying South Beach real estate enjoy the pristine sands of the beach as well as the world famous nightlife. There are many cool and famous night clubs, lounges, and famous bars, on Ocean Drive, Collins Avenue, and Washington Avenue in South Beach. These hot spots are always full of beautiful people having a great time, and the party scene is among, what has made South Beach such a fun place for people to visit, play and live.

South Beach real estate market is concentrated in a small area of twenty five blocks and it is surrounded by pristine waters, the Atlantic Ocean on One side and the Biscayne Waterways on the other side. South Beach Properties range from the ultra luxurious such as Apogee at 800 South Point Drive and Continuum directly on the southern tip of the ocean on South Beach. South Beach is also famous for its smaller and historic art deco buildings situated in the heart of South Beach. Most of the Art Deco condos and buildings are from the 40’s and 50’s, and give South Beach a unique feel and look.

South Beach is a very convenient place to live everything is within walking distance of your South Beach residence.

Diversity is what makes South Beach real estate so appealing to such a wide range of people from different walks of life from all around the world.

South Beach Miami condos have seen a huge construction and redevelopment boom in areas of new construction condos, villas, homes, and condo hotels in the last several years.

The area south of Fifth Street (known as “SoFi”) is home to some of the most luxurious hi-rise condos in the world, with its defining skyline, From the Continuum south tower, Continuum north Tower, Apogee, Portofino Tower, Murano at Portofino, Murano Grande and the Icon south beach inspired by Yoo by Philippe Starck, and the soon to come 5 star Viceroy south beach condo hotel and resort on South Point drive.

The lure of Miami Beach real estate dates back to when Carl Fisher today know for the world famous Fisher Island in South Beach started developing and selling Miami Beach real estate in the mid 1920's. Today is no different with the year round tropical climate and some of the best beaches in the world which attract, world-class boating golfing in Palm Beach, Aventura and Fisher Island to mention just a few, divers cultures, fine dining VIP nightlife and party scene in the world famous south beach, not to forget the high end shopping in Palm Beach, Merrick Park and Bal Harbour shops.

Bal Harbour is the home to several new condos. One Bal Harbour residances addjoining the Regent, Bellini, Majestic tower, and The soon to be St.Regis Residence and resort are among the celebrated few.

Bal Harbour offers some of the worlds most luxurious condos and penthouses to its elite five star residences and hotel guests.

South Beach has some of the most luxurious and most expensive penthouse condos like the World Famous South Beach ICON, Setai, Il Villaggio on Ocean Drive, Bath Club on Millionares row, Continuum south tower and the soon to be completed north tower, Viceroy South Beach, not to forget the Related Group most luxurious APOGEE condominimum. Residences. APOGEE will set the new standard in mega glamorous luxury living in South Beach, just like its predecessors Murano Grande and Icon South Beach did before it.


Source : http://www.miamibeachprestigerealty.com/

Florida Vacation Condo

Florida may be America's favorite vacation destination. There's the Disney World area, naturally, but even more appealing perhaps is the easy-living lifestyle in the sun that Florida offers. For the sports-minded, there are tennis, waterskiing, biking, boating, fishing, and golf, golf, golf.

For those with other pleasures on their mind, there are the beaches, the nightlife, and the shopping. Oh yeah, and the scenery is beautiful as well. Actually, it would be hard to list all the pleasures of Florida.

Now you can rent a vacation condo to make your Florida dreaming come true, directly from the owner. Renting a Florida vacation condo directly from the owner allows you to relax and enjoy your vacation in privacy, while taking advantage of fully equipped accommodations. Many of the locations are stunningly beautiful.

Avoid the cost of rental agent commissions, and choose from well over a hundred listings all over the state at Vacations by Owner. The site is easy to navigate--simply choose an area like Destin or Orlando and scroll through the listings. When you see a vacation rental you like, join Vacations by Owner and you'll gain the ability to contact the owner directly.

If you own a Florida vacation condo, list your property and you can join our exchange club and swap vacation homes with other members. For a very reasonable cost per year, you'll gain the opportunity to market your property to thousands of vacationers around the country. With our large user base, our listings get results--guaranteed!

Source : http://www.vacationsbyowner.com/

Ernie out of Florida condo investment

FRANKFORT, Ky. – Gov. Ernie Fletcher has withdrawn as an investor in two Florida condominium developments but has other real estate investments in the Sunshine State.

Fletcher announced the business deals Monday afternoon in a press conference at which he released his annual financial disclosure statement.

The Florida deals he withdrew from partnered him with former Kentucky Republican Party treasurer Dave Disponett of Lawrenceburg, Russell Springs building contractor Stephen Branscum, and University of Kentucky basketball coach Tubby Smith.

Fletcher said he had chosen investments outside Kentucky to avoid the appearance of conflicts of interest. However, the issue arose anyway because Branscum’s construction company has worked on state-funded projects to build courthouses and
schools.

That’s why Fletcher said he opted out of the deals.

“I don’t want any hint of impropriety, and believe me there was none,” Fletcher said Monday.

Fletcher’s investments were listed in the annual disclosure report filed with the state Executive Branch Ethics Commission on Monday. All executive branch officials are required to list businesses in which they own an interest of at least $10,000.

Missing from Fletcher’s statement this year were investments of $42,600 in Bluegrass Investors LLC and $55,000 in Sanctuary Investors LLC, both of Destin, Fla. Those were the businesses he divested from.

In the Monday press conference, Fletcher said he opted out of the ventures in June. He said he received “virtually” the same amount that he had invested in the project.

Since then, he has invested in three other Florida condominium developments, none of which, he said, involves anyone with ties to state government. The new condo investments were with Louisville native Larry Becker who is managing the projects.

Becker’s companies, as listed on the financial disclosure form, are EL Properties LLC of Destin, Fla., Jaguar Properties of Jackson, Tenn., and Exquisite Management Co. of Destin Fla.

Fletcher said the money he put into the investments – between $160,000 and $170,000 – came from the sale of two homes, one in Lexington and one in Washington.

“There should be no concern about even the perception of impropriety here at all,”
Fletcher said.

Records of the Kentucky Registry of Election Finance show that Branscum contributed $3,000 to Fletcher’s 2003 campaign for governor and $5,000 to Fletcher’s inaugural committee. Last year, Fletcher appointed Branscum to a seat on the UK board of trustees.

Disponett has contributed at least $13,000 to Kentucky Republican committees and candidates since 2002.

Becker’s name doesn’t appear in the list of contributors to the Fletcher gubernatorial campaign.

Source : http://frontier.cincinnati.com/

South Florida hotel taxes post healthy gains

Florida Hotel taxes showed healthy gains in September, suggesting a strong recovery from the summer of 2006 when hurricane memories were still fresh. Miami-Dade County and the Keys saw the biggest increase, with revenue up 8 percent in both destinations. Hotel taxes grew 4 percent in Broward.
In Miami-Dade, tax revenue hit $3.7 million, $614,000 in the Keys and $1.9 million in Broward. Hotels reported a particularly slow summer in 2006, thanks to lingering concerns over 2005's busy hurricane season.
Source:http://www.miamiherald.com

Before Buying Condo, Beware of the Developer's Right to Rent

Q: We recently bought a condominium unit in a new 50-unit complex. The developer will not tell us how many units have been sold, but we recently learned that it is starting to rent some of the unsold units. This seems unfair, especially because our contract states that we cannot rent our unit for at least one year after settlement. Can the developer rent those units?
A: A few years ago, prospective buyers were lining up at developers' doorsteps, clamoring to buy condo units. Many speculators entered the picture, hoping to make a killing by buying low and flipping to a third party even before the units were ready for sale. Others wanted to buy solely to be able to rent the units.
Many developers then started to impose rental and resale restrictions. The most common were requirements, built into the purchase and sales contract, that limited a buyer from renting the unit out for at least one year. Other provisions either prohibited a buyer from flipping the contract or made it so that if the buyer wanted to sell within a certain period, the developer had right of first refusal at the original purchase price.
Times changed. Now, developers are stuck with many unsold units, either because demand shrank or because contract buyers are just walking away from deals -- often forfeiting their earnest money deposit.
Developers argue that they are required to pay the condominium fees on these unsold units, and thus there is no harm to those who have already bought a unit. On the other hand, the current owners claim that this is unfair because it is often difficult to get good financing when there are too many renters in a condominium complex.
Source:http://www.washingtonpost.com/wp-dyn/content/article/2007/10/26/AR2007102600952.html