Atlanta Real Estate Investor Blog

News and opinion affecting the real estate investment community in Atlanta, Georgia, written by a practicing real estate closing attorney.

Blog Archive

  • ▼  2008 (43)
    • ►  June (1)
      • The Investor Blog has moved
    • ▼  May (10)
      • Realtors to open listings to online brokers
      • Banks miss an easy housing fix
      • Case-Shiller: Prices continue to decline
      • Home sales up, home sales down
      • Single-family construction falls to 17-year low
      • No respite, yet: US foreclosures rise 65 percent i...
      • Home prices continue sharp descent
      • Signs of the Times: Condo Discounts
      • Pending home sales hit another low
      • Linens ‘N Things files for bankruptcy
    • ►  April (13)
      • Financing Just Got Tougher For Real Estate Investo...
      • Steep declines in home prices continued in Februar...
      • Foreclosures increase for the seventh consecutive ...
      • Number of vacant homes hits record high
      • New home sales at 16-year low
      • Despite economy’s rumblings, Atlanta looking up
      • Existing home sales slip in March
      • Record number of foreclosed properties up for auct...
      • New home construction at 17-year low
      • Builders: Little Confidence
      • Foreclosures Jump
      • All-time Low for Pending Home Sales
      • Snapshot: Atlanta
    • ►  March (5)
      • Case-Shiller: Home Prices Fall Again
      • NAR: Increase in Existing Home Sales
      • Mixed News: Foreclosures
      • FED: Home Equity Drops Below 50%
      • Pending Sales Flat, Foreclosures Soar
    • ►  February (8)
      • Case-Shiller Home Prices: A Broken Record
      • Foreclosures Skyrocketing
      • Home Sales and Prices Down, but…
      • Housing Starts Decline, but…
      • Outlook Dim, but...
      • About The Future
      • Looking Ahead
      • Down, but not out.
    • ►  January (6)
      • Subprime Mess on 60 Minutes
      • Some Things Never Change
      • Hudson and Marshall Acution on CNN
      • Atlanta Foreclosures Hit Record High
      • The Word of the Year
      • Investor Alert: REO Auction
  • ►  2007 (13)
    • ►  December (2)
      • S&P/Case-Shiller to Atlanta: Prices Decline
      • The One in Which Due Diligence Was Not
    • ►  November (4)
      • Sales, Prices, Fall
      • Atlanta: On the Brink?
      • Home Prices, Halloween Edition
      • One Billion Dollars!
    • ►  October (1)
      • Are we there yet?
    • ►  September (4)
    • ►  August (2)

About Me

  • chippenziedeutch
  • Harlan and Associates

Labels

  • ARM (1)
  • Atlanta Home Prices (1)
  • Atlanta Real Estate Investing (14)
  • Auction (2)
  • Bankruptcy (1)
  • Building Permits (2)
  • Case/Shiller (5)
  • Condominiums (1)
  • Existing Home Sales (3)
  • Foreclosures (10)
  • Fortune-Telling (2)
  • google (1)
  • Home Equity (1)
  • Home Prices (13)
  • Homebuilder Confidence (2)
  • housing bubble (2)
  • Housing Starts (3)
  • Intown (1)
  • Investor Alert (1)
  • Landlording (1)
  • Loan Guidelines (1)
  • MBA (1)
  • MLS (1)
  • Mortgage Insurance (1)
  • Mortgage Lenders (1)
  • NAR (9)
  • New Home Sales (2)
  • Pending Home Sales (7)
  • Radar Logic (1)
  • Real Estate Agents (1)
  • Real Estate Investors (1)
  • Realtors (1)
  • RealtyTrac (5)
  • REO (5)
  • reset schedules (1)
  • Secondary Market (1)
  • Short Sales (3)
  • Spillover (2)
  • Subprime (2)
  • The FED (1)

Sites of Note

  • Atlanta Closing Attorneys
  • Atlanta Daily Intelligencer
  • Atlanta Eviction and Dispossessory Actions
  • Business Week Hot Property Blog
  • Equity Depot: Georgia Foreclosure Listings
  • FarBelowMarket
  • Georgia Real Estate Closing Attorneys Association
  • Georgia REIA
  • GREFPAC
  • Harlan and Associates
  • McCalla Raymer Georgia Foreclosures
  • Mortgage Fraud Blog
  • Mortgage Lender Implode-o-Meter
  • RedX: Expired and FSBO Leads
  • The Crack Up
  • The Real Estate Lexicon
  • The Truth About Mortgage

Monday, May 12, 2008

Signs of the Times: Condo Discounts




Condo developer roundup from this weekend’s AJC Homefinder:


  • Tribute Lofts: Up to $22,222 in incentives;

  • Central City Condos: “Foreclosed Yesterday. For You Today.” Discounts of $77,100 on two-bedroom units;

  • Atlantic Station: Up to $50,000 off;

  • Viewpoint: Up to $75,000 off on selected homes;

  • Twelve Centennial Park: up to $75,000 off select “move-in-ready” residences;

  • Aqua: Get a BMW Mini Cooper convertible; and

  • The Reynolds: New pricing and incentives;


With recent mortgage insurance program changes making it more difficult to obtain financing, and an increasing inventory of homes as more condo projects are finished, condo developers are fighting hard to lure potential purchasers in the door. In one word, they’re desperate.

It’s a tough time for developers, who are competing against individual sellers and investors, along with a surging number of foreclosures for those few buyers who can qualify for a mortgage.
Still, it’s a fight that most developers are in a position to win: most individual sellers or real estate investors can’t absorb the deep discounts that the developers can offer. Nor can they offer perks such as a free car or no mortgage payments for a year.

On the other hand, intown condos offer a lifestyle that cannot be found elsewhere; and for buyers attracted to the convenience of intown living, that lifestyle comes cheaper than ever.

As a closing attorney in Atlanta, I’d strongly advise any investor from seriously looking at condos right now as investment opportunities. Unless you are able to get a unit at a ridiculous discount, there’s just not enough equity in most properties to allow competition with the developers. Additionally, since most condo developments limit the number of rentals, there is a good chance that an investor would be prohibited from leasing out a newly-acquired unit as a buy-and-hold investment.





Photo :Balcony of Midcity Lofts, originally uploaded by a u b r e y.

Posted by Harlan and Associates at 1:29 PM    

Labels: Atlanta Real Estate Investing, Condominiums, Home Prices, Intown

Newer Post Older Post Home

Harlan and Associates, LLC. 6290 Abbotts Bridge Road, Suite 104. Duluth, Georgia 30097. T:770.817.1012 F:770-817.1013 W:www.harlan-law.com Copyright 2006-2007, Harlan and Associates, LLC. Terms of Use.