VULTURES CIRCLING?

Florida’s condominium market is beginning to attract “vulture investors” – speculators who snap up large numbers of properties during market downturns to reap the benefits of discounted prices. Investor Matthew Martinez, for example, expects to sink $200 million into Sunshine State condos, looking for discounts of at least 15 percent. Martinez targets condo conversions, which he plans to revert to rentals to generate money until property values rebound. The strategy could pay off. Average rents across the U.S. from 2004 through 2007 likely will register a growth rate of 14 percent, according to Marcus & Millichap Real Estate Brokerage. Over the same time span, the average rent will have risen 21.2 percent in Orlando, 20.5 percent in Fort Lauderdale and 18.6 percent in West Palm Beach. However, some investors hesitate to make purchases right now, believing the market has not bottomed out just yet.

Source: CNN Money (09/27/07) Christie, Les
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