1000’s of DC Condos for sale, but YOU can’t buy them!
Beautiful views from Condo
After following the news and looking at every single TV show about buying a home, you are READY!!!
Well, sit back and read this little story about how things have managed to go horribly wrong for the DC condominium market.
Condos became all the rage in a city that seemed to have a constant influx of new blood with capital to spend. We have all the makings of a very successful professional town. Georgetown University, Howard University, George Washington University and American University. Congress and a ton of government and local agencies. Let’s not forget all the embassies and other international organizations. Quite a funny mix considering…
DC is a truly unique place. Transition does not even begin to describe what this tiny southern plot of land is all about. I have been here for about 14 years and I only know 5 others that have been here longer than me!! Just kidding, of course! Seriously though, when you think of it, it barely makes sense for a great deal of the population to buy something and settle down in DC. At some point, many of these condo owners decided to become investors. The thought was to keep the condos and rent them out while they steadily appreciated. In essence not a bad idea and many a Realtor must have been pushing the initial investors with this notion.
Here we are years later. The market has turned. There are plenty of great condos for sale, but no one can buy them!!! Why? Current FHA and Fannie/Freddie home loan guidelines require at least 51% owner occupancy. Many buildings just don’t fit the bill. There are just too many renters in most condo buildings in DC. Some are officially rented out as investment properties, but many are not. Many condo associations are not aware or turn a blind eye to the situation. Your Realtor needs to be aware of this situation because it makes it virtually impossible to get financing.
Well gee, Justin, what do we do about this?
COLD HARD CASH!!
Condo owners, you need to go to your condo/coop boards with the message that they need to start limiting rentals. Otherwise you will be hanging on to your condo for a LONG time. The condo my client wanted so dearly to buy was actually an estate sale, and we had negotiated the price all the way down. Then, through the management company and condo documents, it came out that there was only 13% (I REPEAT! 13%) owner occupancy!! That my friends makes it IMPOSSIBLE to buy unless you are paying COLD HARD CASH!!
