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Old 10-08-2007, 11:09 AM
 
20 posts, read 107,126 times
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Hi,

I am a young professional with a job in Uptown, and has been renting an apartment in the University area. I am thinking about buying a condo in the uptown area. But, I am just concerned about the number of highrise condominiums that are slated to open in the uptown area with in the next 3-4 yrs.

So, would this be the right time to buy or would I be buying at the top? Will the charlotte RE market start cooling off, after consistent upward gains for the recent years?

Also, is it better to buy a condo during pre-sale, or after the units have been completed. Just some questions I have been wondering about. If anyone here can provide me with some insights, it would be much appreciated. Thanks... !!!
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Old 10-08-2007, 12:43 PM
 
27 posts, read 66,080 times
Reputation: 14
The condo market will cool off and I wouldn't buy pre-sale in this current market. Patience is key and IMO some of those projects will be delayed, changed, or never make it off the ground.

Continue to save a few more years without the worry of a mortage payment, hoa, property taxes, and repairs. Also, have a realtor track the amount of condo REOs in the uptown area over the next 6mo to 1yr. These condo highrise projects are taking the largest hit nationally right now.
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Old 10-08-2007, 12:52 PM
 
Location: South Charlotte
1,435 posts, read 5,221,122 times
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There have been several articles on Charlotte.com recently addressing a lot of your questions. Maybe try an archive search there about the uptown condo market in Charlotte.

The developers don't seem to be worried and are pushing ahead will plans. In fact, a few new ones have even been anounced recently.

I have many friends who are on site agents and they are still pre-selling units at a good rate.

If your planning on staying in a purchase for the next 4 or 5 years then my opinion is go for it. If not, and you are thinking more short term you probably will face stiff competition and a lot of available inventory trying to sell.
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Old 10-08-2007, 01:32 PM
 
Location: Up above the world so high!
45,270 posts, read 88,310,401 times
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Quote:
Originally Posted by waterboy1 View Post
The condo market will cool off and I wouldn't buy pre-sale in this current market. Patience is key and IMO some of those projects will be delayed, changed, or never make it off the ground.

Continue to save a few more years without the worry of a mortage payment, hoa, property taxes, and repairs. Also, have a realtor track the amount of condo REOs in the uptown area over the next 6mo to 1yr. These condo highrise projects are taking the largest hit nationally right now.
I disagree with the idea of throwing your money away on rent for one day longer than absolutely necessary. Waiting until rates go down once again might be worth it, but rates are still pretty low right now (just not as low as in the past).
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Old 10-08-2007, 01:34 PM
 
Location: Up above the world so high!
45,270 posts, read 88,310,401 times
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Quote:
Originally Posted by Charlottean View Post
There have been several articles on Charlotte.com recently addressing a lot of your questions. Maybe try an archive search there about the uptown condo market in Charlotte.

The developers don't seem to be worried and are pushing ahead will plans. In fact, a few new ones have even been anounced recently.

I have many friends who are on site agents and they are still pre-selling units at a good rate.

If your planning on staying in a purchase for the next 4 or 5 years then my opinion is go for it. If not, and you are thinking more short term you probably will face stiff competition and a lot of available inventory trying to sell.
I think this is good advice If you can sit on your condo for a minimum of 5 years selling should be no problem and your amount of equity and appreciation would be nice.
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Old 10-08-2007, 02:49 PM
 
245 posts, read 196,436 times
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I agree with Charlottean too.
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Old 10-08-2007, 03:03 PM
 
Location: Charlotte, NC
550 posts, read 1,616,903 times
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There's a lot of construction going on and planned downtown, so it's not a bad idea.
The only downside is you won't get much for your money. I mean, you'll pay $180,000 for about 500 square feet to start.
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Old 10-08-2007, 06:45 PM
 
25 posts, read 83,735 times
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I agree with everyone as well... if you are willing to keep the condo for around 5 years, then you'll be okay. However, if you have any thought about moving into a house or something else in the next 5 years - I would suggest looking elsewhere or even going ahead and buying a house now.

I am stuck with a condo in Dilworth that I can't even rent out right now! Take it from me... the CLT uptown, mid-town, Dilworth and South Park areas are becoming too saturated with condos!

I am hoping that sooner rather than later I will be able to rent out my condo. B/c I do know that I could get something out of it in about 5 years or so.

Remember that if you want to get out of your condo in less than 5 years, you must be careful to be sure you can afford another mortgage if you can't sell your condo.
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Old 10-17-2007, 09:52 PM
 
Location: Charlotte-Harrisburg
247 posts, read 760,977 times
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Do some more research. Sure they are building 13 new high rise condos uptown, The 2 largest ones, The Vue & 210 Trade each have about 425 units.Thats not a lot of units for a city where thousands of people are relocating each month. The projected growth in people living uptown far outstrrips the units under construction and in the planning stage. The two things the Charlotte market has that the Florida, & California market did not have are Affordable housing for the workers(without them having to travel 20 miles to get to work) and Employment. BOA, Wachovia, tia Cref, New Big box stores, New hotels, New Retail, all will contribute to sustain the Charlotte Market. These are major players in the economic arena and they have done the market studies, growth projections, and economic indicators for us. They do not throw around millions of dollars on buildings without the expectations of economic growth. So I say follow their lead. Sure there are condos in the Dilworth area and a few uptown area that are on the market for extended periods, but if you really check further they are either asking too much or the apt is not up to the standards of the surrounding units. If you buy a pre construction unit that is 2 1/2 years from completion you only have 2 1/2 years to live there before the magic 5 years is up.
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Old 10-18-2007, 10:30 AM
 
Location: Grand Rapids Metro
8,830 posts, read 17,288,721 times
Reputation: 3714
Quote:
Originally Posted by CarolinaHeel View Post
Hi,

I am a young professional with a job in Uptown, and has been renting an apartment in the University area. I am thinking about buying a condo in the uptown area. But, I am just concerned about the number of highrise condominiums that are slated to open in the uptown area with in the next 3-4 yrs.

So, would this be the right time to buy or would I be buying at the top? Will the charlotte RE market start cooling off, after consistent upward gains for the recent years?

Also, is it better to buy a condo during pre-sale, or after the units have been completed. Just some questions I have been wondering about. If anyone here can provide me with some insights, it would be much appreciated. Thanks... !!!
Find out from the sales agents you talk to how many sales are to "real buyers", or people who are actually going to move into the unit when completed, vs. how many are investors/flippers or plan to rent. Chances are they won't be completely upfront with you, so take it with a grain of salt (if they say 40% are investors, assume 60 - 70%). Generally speaking condo towers and mid-rises need to be 50 - 60% "pre-sold" before they can break ground, meaning half or more of the units have to have a solid purchase agreements on them for the bank to release construction funding. But there's really no way to separate investors from real homeowners, so as long as the developer can show the bank PA's and deposits, they're good to go.

Also, research condo towers that have recently opened in Uptown and surrounding areas and see how many of the newly completed ones are back on the market shortly after closing, or are for rent. This should give you a good "temperature" of the investment market. If it's highly speculative, stay away.

Also, if you do buy, make sure there is an escape clause in your contract that allows you to bail on the closing if the appraisal doesn't come back as high as the purchase price, and underwriting won't approve the mortgage terms. I've seen that happen in high-rise condos before in other cities. In that situation, you don't want to close and you want to be able to get your deposit back.

Just because a lot of money is being invested and financed into these condos does not at all indicate if it is a good investment for you. It might be and it might not be. The developers don't care if you make money or lose your shirt. Long term you should be OK if the market is truly solid.
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