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Old 09-17-2010, 09:40 AM
Location: South Charlotte
1,435 posts, read 5,220,507 times
Reputation: 486


Seem to remember that the developer had to fly overseas to sit down with the investor/lenders and discuss extension, marketing options, loan restructing, etc. That was back when construction first reportely stopped at one point.

I never understood the condo thing and the crazy prices. FOR WHAT???
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Old 09-17-2010, 02:46 PM
1,343 posts, read 2,913,787 times
Reputation: 976
I read the article in the paper this morning (available online)

Uptown high-rise prepares for residents - CharlotteObserver.com (http://www.charlotteobserver.com/2010/09/16/1696772/uptown-high-rise-prepares-for.html - broken link)

You can positive spin it as much as you want, its a unique property, buyers are retired rich people who are paying all cash... yada yada... but the part that makes no sense to me at all is:
The Vue froze purchase prices at 2007 levels. McLean has repeatedly said he will not lower them.

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Old 09-17-2010, 08:34 PM
2,826 posts, read 4,133,008 times
Reputation: 6815
The Vue 'buyers blog' reads like a 'sham wow'!!! commercial. I wish I could be as optimistic!
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Old 09-18-2010, 07:32 AM
Location: Lake Wylie, SC
622 posts, read 1,583,676 times
Reputation: 475
Originally Posted by Charlotteborn View Post
The Vue 'buyers blog' reads like a 'sham wow'!!! commercial. I wish I could be as optimistic!
Totally agree! There is also a forum for The Vue buyers somewhere on facebook, but I have not been able to find it. If someone has the info, please post a link.
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Old 09-20-2010, 07:53 AM
22 posts, read 52,125 times
Reputation: 21
I actually think that the Facebook buyers page that you are asking about is restricted to people that actually have deposits down. The intention of that site was not to be a public discussion forum and they have some more detailed closing info, etc. The Vue homebuyer blog is clearly not unbiased, but it is understandable, it's created by someone that has a large deposit down at a place that he/she really wants to do well. I believe that the psychlogists call it Cognitive Dissonance, we naturally tend to ignore or discount data that goes against our opinions.

I feel bad for a lot of the people that put down these deposits, even if you dont care about having to hold on for a few years to recover value, the idea of a developer possibly going under leaving the burden of HOA fees on a small percentage of units is a pretty intimidating risk.

It's nice to say that your property is unique, but people arent talking enough about how prices are set in a market economy... It's supply (400+ units coming on the market) vs. Demand (this has been very weak recently). When you have a hard time closing 10 units a month in uptown it makes it really hard to see where the 200-300 sales are going to come from when you are pricing all of your new units at a significant premium.
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Old 09-20-2010, 08:37 AM
Location: Ayrsley
4,714 posts, read 8,457,079 times
Reputation: 3814
Originally Posted by CharlotteCharlotte View Post
Yes and what happens if and when real estate drops further? I would hate paying 400k now and then selling for 200k or even 150k 3 years down the road.
In this market, no one is buying anything that they plan to sell in 3 years.

I find it intersting that they have frozen prices at 2007 rates. I would think that they would be looking to sell more units rather than keep them empty. Although I wonder if lowering the prices would mean they would have to refund $ to that group of people who paid the pre-completion prices.
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Old 09-20-2010, 09:28 AM
2,826 posts, read 4,133,008 times
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How are the people that contracted to pay 2007/2008 prices going to get financing? The lenders are going to loan based on current values. Unless the purchasers are putting a huge chunk of change down - they won't be able to get the loan. The developer can't force people to buy the unit if they can't get financing. If they did not have the standard financing clause 'must be able to obtain financing' then they may have to forfeit their deposit. (Hard to imagine anyone would agree to buy property without the financing clause???) If the option is lose my deposit or follow thru with the closing.... I would lose my deposit.

Last edited by Charlotteborn; 09-20-2010 at 09:44 AM.. Reason: additional comment
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Old 09-20-2010, 09:47 AM
22 posts, read 52,125 times
Reputation: 21
I have a suspicion on why they are freezing prices at current prices. What they are trying to do is get as many people as possible to close at their contracted prices anywhere from $400-$600+ per square foot (which are below the posted current prices for new sales, so to some people it still seems like they are getting a "discount") . The developer probably cant sell at what people may consider "current market prices" because it wouldnt cover the debt on the property. So trying to clear everything at $250-$300 sq. foot is not an option, it would have to go through forclosure and at those price the developer and all equity investors are wiped out. The real "owner" of the property may well be the holder of the construction mortgage, but that all depends on what the size of the mortgage was on the property.

I dont blame the developer, the only way that he gets this project to work is to get enough people to close that the condos become eligible for FHA and Fannie and Freddie mortgages. The project would likely get sold (it would take time and likely at a significant discount to current prices) if they can get a critical mass to close on their contracts.

The last interesting piece from the Homebuyer blog that I saw is that there hasnt been any word on loan docs, I dont see how anyone lends against this property without a 30%+ equity cushion, which would mean that buyers would have to put up a lot more cash in addition to their deposit, which I see as unlikely. The only units to close thus far are cash buyers, and I question how many of those there are. When we start to see people close on their units with conforming mortgages I will start to think differently about the project and will freely admit that I was wrong
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Old 09-20-2010, 09:49 AM
11,836 posts, read 25,431,580 times
Reputation: 2781
What was the final total for building The Vue?
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Old 09-20-2010, 06:00 PM
58 posts, read 89,098 times
Reputation: 17
Hi folks! I write the Vuebuyer blog and this thread was pointed out to me. Charlottejw is very astute. As long as this thread stays sane, I'll be glad to share my thoughts here as well. We are all geniuses now and with hindsight can say that the pre-sales buyers of the Vue were idiots or use some other word. But the fact is at the time it was very compelling. And having met lots of them, I can tell you there are some very smart people who bought (I bought but don't consider myself as smart as the other buyers <g>). No one knew the economy would take the hit it did. But, now, here we are. So what to do? The building is built, and it cost a fortune. The units are priced to recover that cost plus a profit. Unfortunately I think you all understand that reality is about to set in and the prices may not attract enough buyers to fill the building (that is probably an understatement). Now, you are a pre-sales buyer with a downpayment on a unit. What would you do? Start up a blog and bash everything about the project? If you read the entire blog start to finish (there are 50 posts) you will see that by in large it is about trying to figure out what to do since the investment is not refundable and we want to be sure not to throw good money after bad. If you all have helpful suggestions, I am very open to them! And in terms of the biased post about the glowing review of the party..were you there? It was an awesome event, and I felt it deserved the accolades I gave it! I don't consider the blog biased. I consider it balanced, and i try to represent many points of VUE. In terms of the Facebook forum, I wouldn't bother. That is a private area for buyers and not much excitement happens there. The blog is where the action is. I am constantly looking for advice and the "inside scoop." So if you have anything to share, or know things that maybe would be of interest to the Vue buyers trying to decide what to do with their investment, please feel free to share what you know!
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