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.