Daughter looking to buy condo in Midtown, need advice on real estate market

[GritstoGranola]

I have not heard good things about the Spire. The condo fees are high there, also. Check out the developer, I think he's going under, but I may be wrong. I can't recall. My daughter decided not to buy and is going to continue to rent instead due to several reasons. These may help you decide...1) The market is still in the toilet and condos prices are still falling; 2) Condos are the first things to lose value in a down market and are therefore not as strong an investment as a townhome or home; 3) The Spire and other condos in Midtown were built at the top of the market. Many people bought who bought them were not really financially stable or ready to buy, but were given loans anyway, they are going into foreclosure; There are a ton more in the pipeline; 4) You have to ask yourself it you are planning on living in a condo for at least 5 years, and in this market, perhaps 7 is more realistic, in order to break even or make a profit when you turn around to sell. So think about your life and where you will be in 7 years. If you are now in your mid 20's and single, chances are in 7 years you will be married with a child or maybe even 2...can you all fit into a 2 bedroom condo? Think about lugging up baby crap, groceries, a dog that has to go potty, etc. while living in a condo. 5) Be smart and put 20% down. Do you have that kind of cash? If not, rent and save. 6) Talk to the property manager and ask him/her point blank if the condo assn. fee listed on the MLS print out is the correct amount. don't be surprised if they say, "Oh, well, no cable and phone is another $100. 7) Condo fees will eat you alive. Yes, it's all so inticing to see the pool, game room, etc. But really, can you afford to throw away an extra $400 - $500. a month towards that when in reality it could go towards a home mortgage that holds more value?

If this sounds like I'm trying to talk you out of buying a condo right now, then the answer is yes. And trust me, I like condos, I've owned several, and they have been a great investment and enjoyment. But, I wouldn't buy one now for all the tea in China unless I was planning on living in it for years and years to come and I did my homework and knew about the building structure (no synthetic stucco - no, no, no), I knew that my job was extremely stable, I knew that 70% oif the owners were financially sound (and really, how do you find this out?) and I had at least 20% down payment. Also, remember to always live below your means by spending less than you can afford. The rule of thumb is to not spend more than 2 1/2 times your gross income on a property. Better yet, don't go over 2 times your gross income. Start paying off the mortgage early by adding more cash to the monthly payment. Remember, this is your first home, not your last, you don't have to bust the bank and get everything your heart desires. Be smart. Be partical. Trust me, in the end you will be happy. Most of the new Midtown condos have over 50% in foreclousre. You realize that when people go into foreclosure someone has to pay their condo fee. Guess who. No matter what the mangement says, in the end, you will have to pick up the slack.

[GritstoGranola]

Originally Posted by Phenergan

I am thinking about buying a 2bed/2bath spire condo. Does anyone live there ? How much is HOA for one bed or two bedroom ? What does HOA include ? How is noisy level ? Is it good time to buy around in January of 2010 ? Are condos get better or more expensive as close to piedmont park ? Thank you.

I just reread your post, and you do not sound ready to buy. Condo fees vary with the buildings. The are based on the number of units and the amenities. The more amenities, the higher the fees. Noise level depends on the quality of construction. Each condo has different bases for the condo fees. Some include cable and phone, others do not. Some include water, others do not, etc. You have to check with each building manager and do not go by the real estate lising sheet. Please, go slow and do a lot of homework. Make sure your job is stable and you can afford to own.

Realtors have a job and that's to sell you a property. They are not your friend. They are in businesss. Remember that and go to someone you can trust for advise, such as your mother. And if possible, bring her along on when you view properties or bring someone who has bought several properties before and understands the market. This is a huge step in your life, don't go into it blindly or put all your trust in a stranger who wants to sell you something. Check out the agent you select. Talk to several agents and in fact, let several show you around so you can get a feel for them. Don't be snowed by personality. Warm and fuzzy doesn't mean they are the best qualified for the job. Pick from the top 3 companies in the area. Not the largest, mind you, the best. Read the real estate section of the newspaper. Go to their company website, check out their background, experience, etc. Look for someone who's been in the business a long time and by that I mean at least 10 years. Tons of people jumped into the job over the past 10 years when it was easy to sell, you want someone who's been around not only during the good times, but the bad times and has some real experience and will guide you to make the right decision and not someone who only sees you as a quite sell.

Okay, sorry, I don't mean to overload you....good luck.

[Phenergan]

Thanks bunch for the valuable information. You almost sound like my mom there. So, is your daughter renting a condo in midtown ?

[GritstoGranola]

Originally Posted by Phenergan

Thanks bunch for the valuable information. You almost sound like my mom there. So, is your daughter renting a condo in midtown ?

Yes, she rents a condo with a friend and is very happy. Stressfree. She's waiting until she is ready to buy a townhome or a home. Save as much money as you can now. Everytime you want to buy something, ask yourself which would you rather have, another pair of shoes or a home? Then, sock that money away! Good luck!

[electricmayhem]

Mishap, it sounds like the buyers who are not in foreclosure are not willing to come down to the market rate in the ones you were talking about. Did you check out the foreclosures as well? I guess we have to sift through those first before we will see regular resales gain traction.

[electricmayhem]

GristoGranola, what's the deal with synthetic stucco? Do some of the midtown condos have this?

[GritstoGranola]

Originally Posted by electricmayhem

GristoGranola, what's the deal with synthetic stucco? Do some of the midtown condos have this?

Yes, from what I understand several do have synthetic stucco.