Second Home Buying picks up in Uptown New Orleans ! A large variety of Condos exist.
July 24th, 2010 Categories: Second Homes, Uptown NOLA
The second home market in New Orleans Condos is changing in a couple of ways over the past year. There are always positives and negatives in a market. Buyers are branching out and buying in a variety of areas. We are seeing more action in the Uptown and Garden District markets. The New Orleans Warehouse District remains strong and the French Quarter continues to improve.
The Uptown Segment is improving for a couple of reasons, The prices are cheaper and the condos are larger in general. Many of the larger complexes have amenities and great locations that make walking very easy. If you need to travel the streetcar is always available. The best reason is that people are enjoying the lifestyle that the area has to offer. The City is not that large and most places are not that far away.
The Uptown area has always seen many students buying condos while they are going to school. We are seeing buyers using the condo as a home for the student with the idea of keeping it a second home in later years.
The interest rate are near 4.5% which means a principle and interest payment of $500 per 100k that is borrowed. You add property taxes and condo fees to that number. You can only have one second home at these rates and then it becomes an investment property. As a second home you will need a 20% down payment for a conventional loan and with good credit you will get these low rates. 
One segment that is showing the most renewed interest is the historic condos that were once old homes. When you can find one of these in a good location with parking or easy access to parking it is a good find. There are not that many so its easy to narrow the choices down to the best condos. The two bedroom and two bath condos are the most in demand. The one bedroom units are still doing OK as well especially if you have a lower budget. Buyers still want location and condition and will not just buy anything.
The other segment that has shown strength is the complexes with secure parking and amenities that provide a place where you can come and go for months at a time and not have to worry about a thing. A great example of this are the Condos at 3915 St. Charles known as St. Charles Gardens . I have sold several condos within the last 18 months and have several clients that are interested in this complex at the present time.
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Buy a condo now as a second home, Enjoy it for the upcoming New Orleans Saints season! You could be a winner too!
July 4th, 2010 Categories: Second Homes, Warehouse District
Many people are doing just that as they enjoy the Saints game as well as all the things New Orleans has to offer leading up to the game. If you have been putting that off , now may be the right time to buy. Many are looking at the Warehouse District, French Quarter and the Uptown New Orleans Market condo market. Its a great place to spend a weekend or more for your kids and family friends. Tie it into a business condo as it could easily be more fun than the stock market.
Interest rates are 4.5% this week- A second home will qualify for these rates. You can dress it up the way you like and this is a lot of fun in itself especially if your wife likes to shop.
The prices have been stable on condos but there are some nice buys as some people need to move on. There are a couple of bank foreclosures that look very interesting. These can always be bargained on to bring the price even lower. It is all in the timing with those.
Many condo offer additional amenities such as gyms, courtyards, roof top views and pools along with some great common areas. These will appeal to all of your family and friends. You can grill and drink at your condo before the game.
Keep that car parked in the garageduring the long weekend as everything you want to do is within walking distance. Walk to the Super Dome or catch a streetcar to the game. Plenty of things to do for fans of all ages.
No need to look at 30-40 condos as I will know where the best 3-4 are that meet your criteria. Just need to know what it is. You can close in 30-40 days just in time for the regular season opener against the Minnesota Vikings. Brett Farve may even want to buy one after the game.
Once people do buy a condo for a second home they always find many things they did not know about New Orleans. You can live as close as Metairie and Kenner and still enjoy your second home. I have sold them and know what people say about the ability just to get away for periods of time. Win or lose the games are an experience. Its time to repeat !! Geaux Saints!!…………..
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Mariners Island Condo #401 in Mandeville on the Lake! The Views are stunning!
June 26th, 2010 Categories: Condo Listings, Lakefront
A choice lakefront condo that features sunsets from your den and sunrise views from your kitchen. Its a corner unit right on the lake within walking distance to the marina and plenty of green space. The balcony is off the den and covered parking for two is on the ground floor. You are minutes away from the Causeway and close to everything.
The lake front condo is tastefully done with wood floors, built in bookcases, a large master bedroom, open kitchen with plenty of cabinets, fireplace, open floor plan , large master bath, plenty of natural light, breakfast bar, elevator and much more. The living area is 1767 sq. ft. The master bedroom is 18.5×15.6 and the second bedroom is 12×15 which is also a good size room.
There are 23 units in the complex. The condo fee’s are $435 per month and include insurance, water, common area maintenance and upkeep. The price $340,900. What set this unit apart is the location with the complex with unobstructed views of the lake and surrounding areas. The other bonus is if you own a boat it can be parked within walking distance of your home. Enjoy the sunsets and dream on!
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New Orleans Condo Trends for June! Bits and pieces of knowledge!
June 8th, 2010 Categories: Market Trends, Selling your Condo
The market is odd for a couple of reasons. The most suprising is that you never seem to have more than 4 or 5 good choices in New Orleans when you consider all your criteria. There are not a lot of new units coming on the market but not a lot selling either. Buyers are looking for the premium units where nothing has to be done. They of course have to be priced right as well.
Sellers have to Stage and Update ! I recently listed a condo at the Cotton Mill Condos where the owners hired a young lady to give them tips and ideas to get their unit ready for sale. Some was painting and getting rid of the clutter. They followed her directions to a great degree.
It was time and effort but it worked. It sold within the week and I know this is why it did. Both units in their final choices were down this way. I was even surprised at the effectiveness and I do this every day.
Sellers have to slot their unit to be competitive ! This means knowing what your competition is and what the final choices are going to be before you list. You need to be slotted to be one of the best in that class. A seasoned agent that works the market can show you where you need to be. Selling a place is all about timing. Take the steps to make you unit compete like the Cotton Mill couple. This save time and make you money in the end.
Tax credit rush is over but interest rates are at 4.625% this week ! That means the cost of money is as cheap as it has been for 30 yeas or more. Borrow a 100k and you principal and Intersest is around $520. The tax credit di create a flurry of activity and many who would have bought in May and June pushed up their buying to April. Once the flurry ended there will be a lull.
The weakness is still in the one bedroom units. The weakness is in condos that need to be updated. The premium units are getting all the action as things have reached that lull. The Louisiana Oil Spill has not helped but may mean if you are buying the sellers may just say yes to a lower offer than they would have taken in April.
The photo above is in the New Orleans Warehouse District where a lot of renovations are being done. I can easily count 8-10 complete renovations in the initial stages of work. This was not the case in the last three years so I know someone has confidence in the New Orleans market.
Maybe its the “gone factor” of no longer having Mayor Ray Nagin running the show into the ground week after week. Breath of Fresh Air Now!
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Warehouse District Condos trends, I see more and more Second homes! The trend continues in 2010.
May 24th, 2010 Categories: Second Homes, Warehouse District
The New Orleans Warehouse District is fast becoming one of the top locations in New Orleans condo market for people looking for second homes. Its a combination of location and the condition of the condos that are available. The condos make a great choice as you can lock the door and leave for a month. The Warehouse District is adding more and more things to do and is close to the others areas of town. Many are a walk or streetcar ride away.
The Warehouse District is fast becoming a center of commerce, entertainment, culture, and home to many locals in the New Orleans second home market. Lets look at what is in the Warehouse District. The Superdome, New Orleans Arena, New Orleans Convention Center, Childrens Museum, World War II Museum, Harrahs Casino, Aquarium of Americas, Federal Courts many hotels, Lucy’s Bar, Emeril’s, art galleries, music venues, and much more. New things are popping up monthly. The Mississippi River is still the biggest reason the area is what it is.
The New Orleans French Quarter is across Canal Street and is within walking distance to all the Warehouse District condos. The New Orleans Garden District and Uptown are a streetcar ride away. The area gets a great score for walking !
The condos themselves are much newer and have some great common areas for relaxing with friends and families. You can find pools, gyms, roof top viewing areas and views of the city and streets. These are the type of units that you can just leave and come back in several months with all in tack. The condo fees tend to be reasonable and most of the condo associations are professionally managed. The parking issue are not a large issue. Crime does not enter the equation in the Warehouse District.
The Corporate Condo market is also beginning to pick up as well. We are seeing companies buy units to entertain their clients on weekends. The Saints winning the Superbowl certainly did not hurt this thought. The fact that more and more things are being built every month you get a sense of an area on the move for something better.
The Warehouse District style condo with exposed brick walls, large windows and high ceilings, wood floors, exposed wood beams beams, thick walls and that historic feel are in style. Most of the buildings are over 100 years old but there are a few newer ones to chose from. Many have plenty of light and exterior views which is now very popular.
The Warehouse District is very pet friendly and all the condos allow for pets. There are parks and green spaces within walking distance too almost all of the condos. Lafayette Square is one such large park on Saint Charles Ave. One thing that is missing is fast food places. Its a lot of local places that have New Orleans written all over them. Wow! What a great change of style to eat good food and walk a lot.
The interest rates on second homes are now at 5% or below which is really the lowest rate in years. Some lemders were offering 4.75% last week. Always better to stay local as the know the market and seem to just care more in getting the job done in a timely fashion.
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Cotton Mills Condos gets FHA approval! Thanks to Ross Miller of Miller Home Mortgages! They have just become more affordable.
May 14th, 2010 Categories: Condo Knowledge, New Orleans Condo Reviews
The Cotton Mill Condos in the New Orleans Warehouse District is now approved for FHA financing. The majority of the Thanks goes to Ross Miller for getting this started for one of his clients. The process took 3 plus months and a lots of work and paperwork by Ross Miller and the condo association management. With the ever changing rules in financing this was no small feat. This is now the first and only condo association in the Warehouse District that has been approved for FHA lenders.
The first question is “what does this mean”. This means the Cotton Mill Condos can be financed with an FHA loan which features lower down payments, lower mortgage Insurance fees, and lower credit scores. It allows the sellers to give concessions in closing cost to reduce the cost of closing.
The FHA interest rates are generally the same as the best Convention loans. During the past week these have been around 5%. This number means you pay $538 in principle and interest for each one hundred thousand you borrow.
Maximum loan is 287,500 for the New Orleans area. Must be owner occupied by the buyer. The 3.5% down payment is the bug number making it more affordable to the home buyer. This means you need a $7000 down payment for a 200k condo. This beats the 10% to 20% needed for a conventional loan.
The additional savings is also on the mortgage Insurance which is as much as one half the convention rate. This is a fee for not putting down 20% and can easily be $200 per month. This fee for FHA is worked into the loan which is even better.
All this means is that the Cotton Mill cost of ownership is going down for the purchasers in 2010. The value of the units for the sellers is also going to be better over the longer term as it makes for more buyers. This is good news for buyers and sellers in the complex.
Before the financial meltdown there were many lenders that would offer low down payments on condos. This has all changed since that time. Even though New Orleans has not had many condo foreclosures we still live by the National Rules and suffer for markets in South Florida and Las Vegas among others that have many foreclosures.
Ross Miller Update-Cell 504-231-5105
05/21/2010
On May 11, 2010 I was able to work with the Department of Housing and Urban Development to obtain FHA lending approval for The Cotton Mill Condominium Complex located at 920 Poeyfarre St., New Orleans, La. 70130. The complex will be eligible for up to about 80 units to obtain FHA financing for purchases or refinances. This means any units where the loan amount will be under $287,500 is eligible for 96.5% financing. Please send any potential clients to Miller Home Mortgage, LLC for Pre-Approvals for this complex.
On conventional financing for condominiums we can do 95% conventional financing on strong purchasers. Our lenders are still doing Limited Reviews on condo complexes which makes the process much easier. We also have mortgage insurance companies who are approving these strong borrowers as well. Hud has recently announced that they are already at 30 days for the initial review of the condo documents. Expect this timeframe to continue to grow as approximately 44,000 complexes need to be reapproved this year.
One new regulation that you should know about. Beginning on June 1, 2010 all loans will have a second credit report run a couple of days prior to closing. If any change in debt or debt not disclosed on the original application is present the loan can be declined or the closing can be stopped immediately. Please advise your clients not to apply for any new credit or to charge up any current liabilities during the lending process.
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Interest Rates
Interest rates are GREAT right now. You can expect rates ranging from 4.625% to 5.0% with no points on Conforming loans and about the same on FHA and VA. We can offer rates as low as 4.375% with 1 point on strong conventional borrowers.
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Warehouse District Market Update for the Spring of 2010.
May 4th, 2010 Categories: Market Trends, Warehouse District
The Warehouse District condo market has showed increased sales activity over the last month or two. The strength of the market has been in the two bedroom and two bath condos. The price range that is showing the most activity is the 250k to 450k range.
We are seeing second home buyers, students buying for medical schools with a desire to have a roommate. We are seeing more people wanting to live in New Orleans on a part time basis and want the extra bedroom for guest. We are also seeing a couple of companies buying units to have for their clients.
The one bedroom units have been the slowest of the Warehouse condo market. There have been a couple of foreclosures that have been some great buys. We are seeing some locals looking to take advantage of the low rates and flat prices of the last 4-5 years. When certain segments have fallen out of favor, this is when you get your best buys.
There are currently120 condos for sale up to the 500k range. There are 40 condos that are under contract or have been sold since March 1, 2010. Not all are priced correctly or may not be the most desirable units. It is still easy to narrow the choices down to 5-6 that meet your criteria.
The things that are selling have been updated. Not many people that want to buy and then fix up at this point. Parking remains an important factor in a buyers decision process. I would not recommend buy a place without parking unless the price is great or no others in the complex have them. The amenities are also becoming more important than ever.
Real estate is seasonal so that is where we currently are. Interest rates are still around 5%. The down payments have increased making it harder for first time buyer to afford their first place. This could be one of the reasons for the lack luster sales of the one bedroom units.
The Cotton Mill Condos is getting closer to being on the FHA that will make it much easier to purchase. Thanks goes to Ross Miller of Miller Mortgage who has been the lead person helping this along. This is not an easy process but would greatly help sales of units below the 300k level. But the 3.5 % down with lower cost is a great incentive.
835 Julia has sold all but two on the one bedroom units that they had for sale. This is a new development that got hurt form the financial crisis of 2009. This is a great sign. There are a couple of new 2/2 penthouses that are for sale. These are good buys in the 400k range.
In the last couple of weeks we have seen more condos come on the market. This is a combination as a better selling environment and the seasonal aspect of the New Orleans Condo market. The premium units have the best change of selling unless a fixer upper have big decreases on cost. Many times the units needing work are just not discounted enough.
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Neigbhborhood Condos in New Orleans! An often overlook segement that can be great choices!
April 23rd, 2010 Categories: Historic Homes, Uptown NOLA
One segment of the New Orleans condo that is often overlooked are these small condo associations that are scatted through out the city. Most of these units in Uptown, Garden District and Mid City. This condo association is in mid city in a great historical neighborhood. Its two four plexes that started out as apartments then were converted into condos. They just blend into the residential neighborhoods of New Orleans.
The interesting comment is that most of these are in residential New Orleans neighborhoods rather than on main streets or around commercial properties. The turnover in these style units tends to be less than in the larger complexes.
There have been several in and around Tulane and Loyola University which are suited for students, residents and other first time home buyers. Many will not have parking but street parking is easy and this does not bother many.
The resales have been good so long as the condos are well maintained. The developers of these types of units are a key factor in future values. Many are just thrown together and while others are well thought out.
Most of the buildings were once small apartment complexes that were built in the 1920’s or 1930’s. Many were large homes that were divided into apartments many years ago. The zoning allowed this in those days. Most of the complexes are in the more historic neighborhoods of New Orleans.
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Cotton Mill Condos, Another Great Condo for $179,806 for an updated unit! Its Unit #307!
April 17th, 2010 Categories: Condo Listings, Warehouse District
The Cotton Mill Condos is one of the better entry level condos in the New Orleans Warehouse District. These condos give you a true New Orleans Warehouse District with a lot of amenities with moderate condo fees. The amenities include a secure building, large interior courtyard, on site management, swimming pool, exercise gym, and secure parking across the street.
The #307 is well priced and has been updated with a few extras such as three large windows with city views. The new wood floors, professionally painted condo, updated kitchen and bath, and location withing the building are hard to beat. It’s the cheapest condo in the complex that has been updated.
Its the best buy for the under 200k price in the Warehouse District. This would make a great second home or home for a student going to medical school in New Orleans. Yes, you can get the best for the cheapest in this case!
This has been a good real estate season so far in the Warehouse District. The supply is slowly being bought and fewer nicer units are coming on the market as more buyers are looking for the nicer things. There however is more demand for the two bedroom units at the present time. The rental market is fairly tight. I think the demand is coming back for the one bedrooms soon!
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New Orelans Condo Foreclosures! Warehouse District Update!
April 11th, 2010 Categories: Market Trends, Warehouse District
I often get asked about getting a good or great deal on a condo in the New Orleans Warehouse District. There just have not been bank foreclosures for sale. Since the beginning of 2009 I can only remember 5 that came on the market. They all happened to be very good deals. I sold 3 of them, but they stayed on the market for a while before getting scoopedup by a Sawy buyer. They were generally in great shape and needed very little done to them.
One was damaged by the owner but the bank put it back together so it looked nice by the time it hit the market. One was entered as a condo and it was a town home and proved to be a great deal. The photos were terrible and I almost missed the deal since the photos made the place look bad. Two of the unit only had exterior photos but were very nice inside. They both sold for about 25 k below fair market value.
The banks will continue to reduce the prices on a regular basis. The out of town banks give you the best deals as they have no feel for the New Orleans Market. They tend not to want to listen so it does not matter, its generally someone else’s money they are dealing with. Coming out of the slow season is a great time to catch these. They tend to go with real estate companies that do not normally work these areas. All these factors tend to work in the buyers favor. The knowledge of pricing and trends are on your side.
Short sales are a totally different story. I know of no successful sales first hand and many disappointed sellers, buyers and agents. I would avoid these in this market. It generally takes many months to make it to foreclosure after a short sale falls through. The information flow is terrible from these companies to the point of being just downright rude. My advice to buyers is to move on to better deals. Once foreclosed then the deals get even better.
One of the reasons there are few condo foreclosures, a Warehouse District Condo is easy to rent and the rental market has been getting tighter. Fewer people are buying but opting to rent for a time before jumping into the market.
Most people think there are many more foreclosures than there actually are. Most happen to be in pretty good shape. This is not Miami or Las Vegas and New Orleans Warehouse District did not get overbuilt in this area. Hurricane Katrina hit at about the time that the real estate bubble was really building before the skid.
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