At what point do you quit waiting for the market to fall and buy? Well over at the Hard Rock Hotel in downtown San Diego, I think the answer is NOW. For those of you who aren’t familiar with the development, click here.
With about 50 condos for sale, it’s easy to say that there’s a fire sale in the building. But is that really accurate? As a member of the Prudential-Hard Rock resale team, I don’t see it that way. The truth is, there are a lot of people who want to sell, but only if they’ll make a profit – they’re testing the water. Now I think we all know this is not the time to just see what you can get, but we also know it’s not a good idea to drink two bottles of wine with dinner – we still do it though…don’t we?
My point is, of all the condos that are currently for sale at the Hard Rock Hotel, I’d say less than 50% actually need to sell. And with a total of 420 condos in the hotel, that’s a small fraction of inventory – about 5–6%. Now…of those units that need to be sold, there are a handful that are actually priced to sell. And out of all those, there’s one that you should buy right now.
Unit 228 is a second floor studio that faces…who cares! Unless you’re prepared to purchase a Rock Star suite and spend a good chuck of change, the Hard Rock Hotel is not about the views(in my opinion). If I were purchasing in the hotel, I’d buy the cheapest unit and hang on to it forever. Now if you’re one of the few people who are actually going to use the room and stay there frequently, then I’d spend some more money and really pick the one you like.
But if you’re just looking to invest downtown and you want to take advantage of VIP services at the hotel, then why pay a premium? The reality is that you probably won’t stay here as much as you think and even when you do, are you really going to be sitting inside your room, enjoying the view? Doubtful.
At a list price of $199,000, unit 228 is an incredible deal. This unit was purchased for about $350K about a year ago! That’s over 40% off! If you saw a 43% off sale at Nordstrom, wouldn’t you jump at it? This is a short sale, but the price was also suggested by the bank – not the seller.
Granted, you could buy something a little larger else where in San Diego for the same price, but I can promise you, it won’t be in a building, or location, that even begins to compare to the Hard Rock. So what are you waiting for?
Click here to see all the condo-hotel units for sale at the Hard Rock Hotel.
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