For the last two years or so, I’ve cautioned investors about buying in areas which were overdeveloped. Williamsburg was an easy target to mention. In 2006-2007, thousands of units were planned or constructed in the area. Since then many investors have jumped at the chance to convert broken condo projects to either sell them off at a discount or convert them into rentals.
My theory was that as these distressed situations worked their way through the system, there would not be enough demand to absorb them. Furthermore, I thought that those tenants previously priced out of Manhattan would look to return once pricing corrected.
I was wrong on several accounts...
Visit The Full Nelson at NYInc for the rest of this article