Confused Newbie-buyer needs help

[Lanie]

Hello All!

I’m 26, living in Los Angles. I was notified 180 days ago that my building intended to be converted into a condo.

I want to know what my rights are, or how to find out what my rights are. I know I have the option to buy, but I want to be as informed as I can be. I wasn’t expecting this to happen, so I’m a bit clueless.

Next week, is the Public Hearing Notice. What can I expect to learn by going to it?

Can someone lead me in the right path?

Thanks!

Lanie

[h82rent]

Is it INTENDED on being converted, or has it been actually announced and they are proceeding? The reason why I ask, is because I live in an apartment that has been “warning” us for the past two years that it is filing the plans to go condo. Recently (I believe in early 2006) the City of SD approved the project. However, they have not provided us with an official 180 days notice because they aren’t even sure that they want to proceed with the conversion.

Note, this apartment is in UTC, and you can read this website regarding all the failed condo conversions that are happening. I think they saw this and decided to remain as an apartment for now. They now have the right to move forward with the project at any time.

When/if they do, they have to give us 180 days notice. That is all they owe us. If you earned VERY little money, I think they would compensate you… but I remember it being VERY little (they wouldn’t even give you the apartment if you made that little). I recall reading that renters might get more rights in the future, but there isn’t much now.

Others will probably give their two cents. This board has very knowledgeable people in it.

[Lanie]

They have given us the 180 day notice. And Saturday, we got the Public Hearing Notice.

I think I might want to buy it if I can afford it, because i will never be able to afford buying in LA (getting in at the bottom).

[h82rent]

I can say that I wouldn’t buy my apartment… not now, no way. San Diego (and especially the La Jolla / UTC area) has very high rents, too. But I’m convinced now would be a terrible time to buy a condo here. Just my opinion, though. I’m sure you’ll get many more.

Here is a good link from this forum…

http://piggington.com/about_utc_condo_conversions

But do yourself a favor and do some searches on this site (upper-right corner) about condo conversions, rent versus buy, etc. You’ll be glad you did… whatever decision you make.

[Lanie]

Will do. How different is the market from San Diego and Los Angeles?

[h82rent]

Again, I will defer to others much smarter than I am WRT San Diego verus LA markets. I would say that it all depends on where you live in both areas. I think both cities are very similar… some zip codes are way different than others, but all of them are waaaay overpriced, and we both live in one of the most expensive areas of the entire country.

For rental comparisons, check out…
Rentslicer.com

For sales comparisons, check out…
http://www.homepages.com/

[Lanie]

Great! thanks.

[EJ]

sorry if duplicate …

I moved from an apartment after it was sold and approved for condo conversion. I did have first choice if I wanted to buy (I didn’t). Most residents moved before the 180 days was over and I was one of the last to leave. They ended up giving me $2k for moving expense (I moved myself for $500) and my complete security deposit without having to clean anything (they were gutting it anyways). If you do get the notice, it might be worth it to stick around for a while and see if you can get some freebies.

This was in SD in 2003 at the height of the craze. The people that bought are probably well underwater by now. They were listed at $420-500k for approx 1200sf 2bed/2bath directly under the flight path (had to ask people on the phone to hold when a plane passed). Rent was $1295.

[EJ]

deleted

[Lanie]

They haven’t given us any figures yet. I guess it all comes down to the price. We actually live in the burbank airport flight path, but don’t hear too much planes (unless I’ve tuned it out)

So, if the price is rediculous, i’ll be packing up. I just want to know all my options so they can’t pull anything.

[lindismith]

Now is not a good time to buy. You are young. You don’t know this probably, but real estate is cyclical, and while the long, long term trend is usually up, within that ascent are peaks and valleys. We are coming off a peak, and most informed people believe prices will continue to drop, to a valley that’s very low.

If it were me, I’d sit tight, and see how things progress. Don’t commit to anything.

I know it’s tempting to be a homeowner, but it really isn’t the right time to buy. At some point, you will be able to afford something. It may be this apartment you’re in, but chances are very good it isn’t.

Someone gave me some very good advice last year – a friend who is a mortgage broker. He told me to log onto Zip Realty and start perusing the zip code of where I live, and where I want to buy, so I could become familiar with what’s on the market, and what my money gets me. Within a month I could tell the difference between a good deal, and something over-priced. It will help you if you become more knowledgeable on your market too.

As someone who’s not invested in your future, in my opinion, anything in a flight path would be extremely difficult to sell in the future.

Keep us posted on what they offer you.

[4plexowner]

Realize that a condo conversion is just an apartment with a legal deed that allows it to be sold individually.

The converter isn’t going to upgrade electrical, plumbing, insulation, etc.

Why anyone would pay good money to own an apartment that has had a cosmetic makeover boggles my mind.

Save your money. Plan on buying a single-family house in 2009 or 2010. I expect to be buying entry-level houses for less than people are currently paying for condo conversions.

[greekfire]

I would recommend taking the full 180 days and doing as much research as you can. I don’t know what you’re personal interests and goals are, but I prefer SD County to LA County. I actually worked in Burbank inspecting their roads and have been in the area you are talking about. I thought it was kind of cool to see & hear the planes fly so close overhead, but I don’t live there and imagine it must get old after a while.

You wouldn’t happen to work in the public safety profession, would you? I remember (back around the fall of ’05) stopping and meeting a nice lady while I was inspecting roads there. She was waliking her dog near Pacific Park and said she was working with the police department.

[(former)FormerSanDiegan]

I don’t know about Burbank area, but on LA’s westside there is extensive development of condo units, including several thousand in Century City and a large number of smaller complexes that have been sprouting up all over the West side. Condo sales activity and prices have already flattened in these areas, as have SFH. LA appears to be at the point that SD market was heading into the end of summer/fall of 2005. Volume has been drying up and prices are no longer increasing. Seems to me that LA is about 9-12 months behind the SD area market. I would not recommend to any of my friends to buy anything here and now, and especially condos. Your chance to get on the equity train will come back around in the next few years, and if you are patient you will be able to get into more house than a condo under a flight path.

[speedingpullet]

My old West LA apartment complex thereatened on a yearly basis to become condos, but in the 6 years I lived there, only in the last 6 months did they actually convert one apartment as a ‘test’ condo. As far as I know, it has not sold.
In fact, according to other tenants who had lived there for 15 + years, the place was going to be turned into condos since the get-go, but there was always some delay or technical hurdle.
Having said that, we never got to the point of a 180 day notice or a Public Hearing, so I don’t know how much of a fait accompli it has become.

Sounds as if this is a last-gasp attempt to make some money before the market slumps. I’d be surprised if its economically viable at the moment.

[Author]

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