Condo Conversion Isn't Getting Any Quicker

No surprises here. Three- to six-unit building owners have the right to pursue condo conversion through a lengthy and time-consuming lottery system. A total of 1,844 TIC units applied for conversion this year. Unfortunately, the cap is still set at 200 conversion approvals.

Better yet, there are 2,100+ TIC units expected to apply in 2009. At this point, it’ll take an average of 24 years to condo convert for a 2010 applicant.

2 responses to “Condo Conversion Isn't Getting Any Quicker”

  1. Gretchen says:

    I have lived in a four-unit building for three years as one of four owners. Just last year, we were able to enter the condo lottery. But I will probably sell my unit before our building ever converts. Can’t imagine what it is like for TIC owners for six units or more. A friend of mine just sold his TIC and lost a little money. If I could do it all over again, I would have saved more money and bought a condo.

  2. insidesfre says:

    I am not a big fan of TIC ownership beyond 2 units. Even with the fractional loan product being offered, I am not confident that type of loan will be available long term. Most TIC owners are like you—will sell before they can convert. Also, TICs will be the property type hit by the changing market. Those who can afford a condo will probably look to purchasing one vs. a TIC. There is too much economic unstability afoot to risk relying on co-owners to pay their mortgages.

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Eileen Bermingham

Corcoran Global Living


DRE# 01352627

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