Recent grad looking for condos/apt inside the perimeter (Vinings: sublet, foreclosures) - Atlanta - Georgia (GA) - City-Data Forum

sayforee · 04-02-2009, 09:36 AM

I will be graduating soon and looking for a place (2 bed, 2 bath) to life inside the perimeter. Just wondering if anyone had any suggestions for where I should try to live with these in mind:

(1) I want to live in a complex with the majority of residents being young professionals
(2) That is safe (taking into consideration that no where is completely 100% safe and we live in ATL)
(3) Fairly new or renovated
(4) Have good places to go out nearby
(5) Under $1000 (if possible)

I've been looking at Post Glen/Brookhaven but wasn't 100% sure if I wanted to be there. It's close to MARTA and has a few bars/pubs nearby. Don't really know about the demographics or safety.

Also, I have a job lined up but don't really have enough money saved for a down payment. But with how cheap some of the condos are these days, do you think its better to try an buy a place instead of renting? If I find a place around $150K's, the mortgage payment would be the same as renting. And I hear you can get a mortgage without having money for a down payment (don't know if this is true).

What are your thoughts?

Thanks for your input.

Mishap · 04-02-2009, 12:30 PM

You need at least 3.5% down to pull off a FHA loan which is about 5k if you're talking about a 150k place. The days of 0% down are pretty much gone. Also for the FHA it has to be in an established building that FHA has approved. All those new condos that aren't at least 70% sold don't qualify. Traditional loans will want at least 10% up to 20% to lend on a high rise in this environment b/c they got burned a lot by speculators. You'll also pay a slight premium on the interest rate.

There are a few foreclosures in my current building in Midtown listing at 140-150k 1bdr/1ba but you have to remember condo fees and taxes will likely break your budget. 2bdr units in any decent quality building are going to be solidly north of 200k in Midtown at least. A 150k loan @ 5% it is a loan of $805/mon but the association fees are at least $200. If you're in Fulton County, the property taxes will likely be 1500-2000 making it over 1100/mon up front. If you have 6 mon savings lined up then this isn't a bad deal as long as you're in a stable industry. I'm looking to buy near the sub 200k point but I'm bringing 40k down and 6/mon safety fund should I lose my job. The problem I'm running into is unless the seller is distressed they are not inclined to sell for less than their loan balance which is fairly high b/c no one put any money down.

I shopped Atlantic Station a bit but the sheer # of foreclosures scared me off. All the units in Twelve that were going for 250-350k 2-3 yrs ago are closing at 120-140k which means any remaining owners will likely jump ship as well. If you're 100-150k upside down on your loan, you're not going to be very inclined to keep paying.

In this market you may want to shop craigslist for condo rental listings. A lot of people are desperate to keep cash flow going to keep their units. The managed properties may be slightly cheaper but they tend to nickel and dime you for things like washer/dryer, trash, etc. 2bdr/2ba might be available in some less desirable areas but for under 1k but unless you really need 2bdr its a big jump in price. If I were in your situation, I would maybe sublet a room for 6 mon to save up some cash to buy and then buy something before the 8k tax credit goes away.

sayforee · 04-02-2009, 12:39 PM

Mishap,

Thanks for the response. I'm in a stable industry (accounting) but am just coming out of school. So I don't know how much I will be able to save up making around 50K for my first year. I was looking to do all the condo auctions but was worried that I was rushing into it just for a good deal. I figure renting for a year (or couple) before buying might be the best move.

noah · 04-02-2009, 01:00 PM

At $50k I would think you could save a good chunk if you rent for $1000 or less and don't have a lot of other debt like car loans or student loans etc. Of course it really depends on what kind of lifestyle you lead.

Quote:

Originally Posted by sayforee

Mishap,

Thanks for the response. I'm in a stable industry (accounting) but am just coming out of school. So I don't know how much I will be able to save up making around 50K for my first year. I was looking to do all the condo auctions but was worried that I was rushing into it just for a good deal. I figure renting for a year (or couple) before buying might be the best move.

Mishap · 04-02-2009, 01:18 PM

50k is on the very edge of affording a condo especially without any down money. After 401k deductions you're looking at maybe 1300-1500/paycheck which isn't too bad but if you're dropping 1k on an apt everything else gets expensive pretty quickly. Add in a car, eating out a lot, and any student loans and it goes away rather quickly.

I went to the Element (Atlantic Station) auctions which were fairly cheap at 140-160k 1bdr and 180-220k for 2bdr's at face value. They were going for 20-30% more easily but now the building has a very bad valuation problem. The 50 or so units they're still selling at "auction" prices along w/ the 56 units they sold in the auction destroyed any equity the 200 other owners had in the building. Maybe some were holding out for the market to stabilize but if you had your 3bdr you had listed at 400k the week before the auction and every 3bdr closed in the 260-290k range, you suddenly don't have much incentive to hold on. Destroying your credit becomes a more attractive option rather than paying 1k extra a month on your mortgage than your upstairs neighbor w/o much chance of ever recouping that cost. It might be 5-10 yrs before the owner pays in enough equity to even sell at a loss.

That's why while I looked at the auctions, I didn't pull the trigger b/c even if I got a 2bdr for 180k, it'd likely go down further when the existing owners default and drag down the condo association with them. Instead I've been patiently shopping for deals in more stable buildings. It's tough to find ridiculous deals but I feel more comfortable about my investment.

Lemur2004 · 04-02-2009, 01:19 PM

Have you looked at Vinings at River Parkway?

sayforee · 04-02-2009, 03:39 PM

Thanks to everyone for the input. I actually visited the element condos but never went to the auction. Although it looked like a steal, I was worried with the instability and what Atlantic Station may turn out to be (hopefully not Underground ATL).

And with my 50K salary, I am lucky not to have any student loans and have a car that is fully paid for. My major expenses would be rent/mortgage, 401K, and going out expenses (gotta have some fun right?). But even with that being the case, even in a stable industry like accounting, no one is 100% secure in their job.

Lemur...I have not checked out Vinings yet but I will look into it.

Thanks for everyone that replied.