[quote=recordsclerk]I would not buy any condo conv. for more then 50% off peak prices. If these are, the MP condos that started selling in 2005 there will be more dramatic price drops. I would not consider these new condos in anyway. They may have new plumbing/electrical in the walls, new kitchen, new baths, paint, interior drywall. They still have the inconvenient parking, dated exterior, and apartment feel. Anything in the 300’s should have an attached garage and more updated floor plan. There are 2 bed/2 bath condos within a few blocks going for under $200K. Condo prices are starting to tank everywhere and soon enough these condos will be affected by these price drops. The Allure condos in Serra Mesa were selling about the same time and are starting to see price drops of %50+ already. Condo converts sold between 2003-2007 will have large numbers of foreclosures bringing down the prices. Once the price drops to about
%30 off peak, it just accelerating the rate of decline. People will just start walking away. Watch out for HOA issues once this starts happening. As soon as the builder sells off remaining inventory, the HOA usually goes to hell and the place starts to deteriorate. Take advantage of the price drops; do not get taken before the price drops.[/quote]

The problem with using this as a strategy is that it uses the peak housing boom prices as a reference point. Waiting till things fall (x)% from peak is not a well thought out plan. I have seen projects where the magic number was 30% (because of location or some desirable aspect) and I am just about to close escrow on one for 60% off of peak (and I still think its high).

However with regard to the HOA, recordsclerk makes a really good point. The fiscal health of the HOA needs to be reviewed by the buyer. This is a good situation for employing a competent buyer agent or an attorney or someone who can really help make sense of this for you. When you look at the package the seller gives you it is really important to know what governing documents you are agreeing to and whether they have a functioning budget built in.