Twelve Centennial Park Condos advice please? (Atlanta, North Druid Hills: real estate, rental, HOA fees)

[Mikeg5551]

Hello and thank you in advance for any replies.

I recently moved to Atlanta. 2 months ago to be exact. I just recently put an offer on a 760 sq ft 1 br 1 bath. The condo is nice modern and is on the 28th floor. HOA fees are not too crazy ($240).My offer got accepted at 136k.My question is that how is that area? is it a safe area? I am newly married and expect this area to be safe at nights for walks.
Also for the real estate savy, is this a safe investment? Would I be able to sell it quick if I ever need to upgrade to a larger condo?

For the residents of the TCP what is your feedback?
I appreciate your answers to all.

[ATLTJL]

Also for the real estate savy, is this a safe investment? Would I be able to sell it quick if I ever need to upgrade to a larger condo?

Safe investment? I would say absolutely not.

I remember looking at these condos when they first opened and we were in the height of the boom, or maybe things were already starting to cool off a bit, I don't remember. Anyway, while I was in the waiting area, one guy came in to cancel his contract on 2 of the units. When they asked him why, he said, "this place is not a good investment."

That's just an anecdote, it's not why I am saying it is a bad investment. I say it is a bad investment because it was originally planned to be a 2 tower project, they were going to build one tower, sell it, then build the other. As you can see, it is still a single tower, but they still own the land and hold all the permits. So you better believe that the second the market starts to heat up again, they are going to build that second tower and flood the market with units again, which will have a crippling effect on your value. Especially because I bet they make the second tower nicer in order to compete better with whatever else starts going up. Not only will the inventory reduce value, but now all your community amenities will be twice as crowded as they are right now. More people at the gym, more people at the pool, etc.

The good news is, I think you're getting in at a pretty decent price. It probably would have gone for $200k new, if they could have moved it. And you're on the 28 floor, which is nice. I think you're probably pretty decent on price, your problem is going to be how long it will stay on the market when you are ready to sell...the high floor should help with that! I wouldn't think you could lose too terribly much, but you probably won't gain much either, at least not in the short term. I would say if you need to sell in the next 5 years, be prepared to take a bit of a bath. If you can hang onto it longer than that, you'll probably end up being alright. I would look into upgrading to any little extras that may still be available that could help you move the unit when it's time to sell. Like if they still have any storage units available, that will definitely help move it, or if you can purchase an additional deeded parking space, things that people want that may no longer be available when it's time for you to sell. Also, I would immediately get on the waiting list to rent your unit out because those lists can be years long.

That's my non-professional advice as an observer of the market. Nobody has a crystal ball, even the so-called professionals.

May I ask why you think a 760 square foot condo will be suitable for 2 people? I don't know, some people can do it, but I think most get sick of constantly being on top of each other. If one or both of you travel a lot, maybe that would make it more tolerable. I hope you really, really, really love your spouse cuz you won't be able to get to far away from him/her.

[testa50]

Is it a good investment?

This depends on a number of things. The condo market in Midtown has tightened up a lot over the last year (my building went from having a few dozen units on offer to ~10 at any given time), but you're not in Midtown. It seems hard to picture your unit completely tanking in value, but I wouldn't count on being able to sell at the same price at a moment's notice; especially not making up for fees and such.

In order to make it a better investment, go to your HOA immediately and get on the wait list to rent the unit out. It might take 3-5 years or even longer to rent it out, but eventually you'll be able to rent it. Rents in Atlanta are nice and juicy right now; I would picture $1,200 a month for a unit like that. In five years, it could be better, or it could be worse.

Is the neighborhood nice?

Hmm, well, it's not the best area in the world to be honest. You'll notice a substantial level of homeless people in the surrounding blocks--sleeping in doorways and such. I'm being honest: I like the area, but it does have some level of urban grit. A lot of this is caused by the nearby Peachtree-Pine homeless shelter, which is an ongoing political issue (they can't pay their bills, but remain open). Anything could happen; if the shelter closes, the homeless issue could either improve or get worse depending on who you ask.

A few blocks south, on Peachtree, you have a lot of activity all day long and into the evening. Mainly tourists, students, and office workers. Restaurant scene is a bit lacking, but you'll be able to find some places you like. You'll be frustrated that downtown has a lot of good restaurants that close at 5PM: when you find one, tell them you like their food and would eat dinner there if it were available.

You're close to the park, which is a good thing. That's the nicer part of downtown these days, with lots of tourists day and night, and a number of restaurants.

You aren't far from Midtown, but it's not a particularly pleasant walk if you head straight up Peachtree. To get to Midtown, I would instead suggest going up West Peachtree, cut through the hospital campus over the Peachtree, then go north from there. Unfortunately, the southern part of Midtown isn't the best part. You've got the Fox and some restaurants, but not much else. Midtown's main activity area is between 6th and 10th, and most new development is happening north of 10th these days.

You've got MARTA right outside your door, so that's a definite perk.

Hope this helps. If anyone feels I was too hard on a particular place, feel free to disagree. I'm just trying to be honest with how an outsider would view these areas.

[ATL Golfer]

You're buying at the bottom. That is not a bad price for a 1bd on the 28th floor (high floor).

I would not expect some crazy appreciation. I would look at it this way, "I could be paying rent having $0 going towards principal paydown and $0 tax write-off on the interest payments."

I imagine your mortgage pmt + tax/ins/hoa is similar to a rental rate.

You're in a good, desirable building. You should have no issue selling for what you paid at minimum.

[gt6974a]

$178/square foot seems high to me, regardless of the area.

[pignchick]

I would not buy in that neighborhood regardless of price. It will not be what you are looking for unless you stay in your condo fortress. Try to find something above Ponce and on the east side of the connector instead and pay a little more if you want to enjoy city life today. If you have kids, you should move to Decatur. The area south of Decatur (Oakhurst) is booming with young families buying homes.

The portion of the city that this condo is located in is infested with crime because the Metro Atlanta Task Force for the Homeless that operates a horrid Peachtree and Pine Homeless Shelter that warehouses 500+ drug addicts. A lot of these homeless occupy nearby parks including the Mayors Park. There is little street life in this corridor. The only way that place gains value is if that homeless shelter closes down and the bad elements leave.... Atlanta has been waiting 10 years for that... They have shut off the water and possibly electricity, but the homeless shelter has been able to stall the foreclsoure processs for years.

[arjay57]

I would have thought that was a pretty good area. The last time I was down there it seemed okay to me.

[pignchick]

Originally Posted by arjay57

I would have thought that was a pretty good area. The last time I was down there it seemed okay to me.

It is not the worst neighborhood in Atlanta, but it is not the best either. Probably about a 4/10 in my book. I would not feel safe walking in this neighborhood, until I reached the Fox Theater.

Personally, there are many better neighborhoods to choose from, especially if you have children. Virginia Highlands, Toco Hills, Morningside-Lenox Park, Druid Hills, North Druid Hills, Decatur, Lake Claire, Candler Park, Oakhurst, Avondale Estates, Brookhaven, and Peachtree Hills are a few nearby in-town neighborhoods that I would I recommend for families. If you have money, then move to Ansley Park or Sherwood Forest.

[arjay57]

Well, if they are looking for intown areas to raise a family they should obviously consider many of the Buckhead neighborhoods as well. However, I didn't understand that kids were involved at this point.

[Mikeg5551]

Thank you all so far for your honest prompt replies. My thoughts are that this unit sold in 2007 for $277k. It is a forclosure. What helps it also that it is FHA approved which means as low as 3.5% down and minimum 550 credit score which also helps moving it. I am not expecting appreciation but I also dont want to be tanked!! I am planning on staying there a maximum 2 years then on to a new place from there.
How can I find out how long is the waiting list on rental?
Thank you all for your generous responses

PS: No Children