Wednesday, December 12, 2012

Only 1 in 6 condos are Owner occupied at Nautilus Cove

Out of 168 condos only 27 have a 'homeowners exemption', that is 16% of the units and it has held at this level for the last year.  Some new registrations come on and others, through foreclosures or move aways are subtracted.  It is difficult to get a firm fix on this as the wildcard in the deck is the surge in 'lis pendens' (in foreclosures) which leaves some units empty for long periods.

There is a growing trend for buyers to pick up bank foreclosures/short sales at rock bottom prices and then rent them out as income producing properties.  This works out fine if you purchase at 45-50% of the original sale price and you can make some money renting out such units.  It dosen't work out nearly as well for those owners who paid full price before the housing bubble burst.  The $800-1,000 they bring in monthly might not even be enough to pay the mortgage each month, let alone the condo fees, taxes and insurance.

So those who purchased here thinking they would be living in a community of other owners and enjoying retirement have found that they are owners in an apartment complex.  Not really what they had in mind in 2005-08 when they decided to buy here.  New owners will continue to replace old owners and the complex will probably continue to be about 80% rentals.  The 'good news' is:  we won't have to rent a hall for the Annual General Meetings, we can just have them in the clubhouse.