Condo sales trigger doubts
Pre-construction sales force some to take a heavy loss
A year after Fort Myers' first downtown condominium tower opened, two of its units have sold for less than the initial buyer paid.
In one instance, county records indicate, the buyer lost $46,000. In the other, the price dropped almost $34,000.
Fort Myers-based real estate broker Ed Bonkowski said many of those who have already bought will live to regret it as prices inevitably fall.
"I always found it hard to believe you could speculate on a $500,000 condo and expect to make money," said Bonkowski, who works in the downtown area. "To carry a loan on a half-million-dollar property is an easy 10 percent a year, or $50,000. So in two years the price has to go up $100,000 to break even. That's not going to happen."
Craig Teich, who sold the two high-rise units for less than he paid, said he wouldn't hesitate to recommend investing long term in new condominiums.
"The bigger question is what happens five years down the road," he said. "There's too many strong drivers for real estate: the influx of baby boomers, buyers from Latin America, and prices are lower compared to California."
[then why did he sell for a loss? - Mish]
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