Archive for November, 2011
Buying a condo at 4% interest rates could be better than renting…
November 27th, 2011 categories: Buyers Agent, Condo Knowledge
Lets talk about the numbers. Lets chose some round numbers to make it easier to see. Lets look at borrowing $200,000.
Principal and Interest Your payment of just interest and principle would be $954.83 per month. In the beginning you are paying $288.17 towards your principal. This is your equity that builds up much quicker when rates are low. After two years you would have $7187.58 in equity.
The 24th month you would be paying down the equity at $311.08 per month. The amount you pay in principal increases monthly. The equity is yours to keep.
Tax Saving as interest rates are deductible If you are in the 25% bracket you will deduct $22,916 of interest in the first two years. The average saving over this period is $5729 or $238.71 per month. This is an out of pocket saving from Uncle Same. This saving goes down over time but paying down the principal goes up. Live in your condo for two years and you never pay it back.
So far the 954.83 minus the principal payments and tax savings gives you a much lower number of $427.95. Almost sounds too good to be true. It is as you do have condo fees, repairs, Interior insurance and PMI.
Expenses have to count. A higher than normal condo fee for this price unit is about $300 per month. Insurance is about $50 per month for your contents. You may pay this anyway if you are renting. Not everyone needs to pay PMI. Only those that do not have 20% down will have to pay this. Once you have 20% equity this can go away.
Adding the $300 plus the $50 to the 427.95 gives you $777.95 per month without the PMI. The PMI will vary depending on your down payment. Lets say the number is $150 per month. Your number comes back to $927.95. This does not include your closing costs or taxes.
Taxes and Closing costs- Your closing cost are a one time fee and will be less than 2% and cover some of your future cost. Taxes are going to run about 14.5 mills in New Orleans. So figure your taxes will be about $150 per month with your homestead exemption of 75k. Adding this to the other cost you get to about $1075 per month. It may be a little more or less but compare it to $1300-$1500 in rent that you would be renting for.
Appreciation and Sweat Equity will not be taken into account at this time. Buying right may get you some instant equity as well. Timing can save you money as well. Having an experienced agent can save you more that knows the markets.
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Condo Buyers “MIA”, What is a seller to do….
November 22nd, 2011 categories: Condo Knowledge, Condo Listings
Sometimes it does not matter what the quality or price is on your condo. You are just not getting buyers into your condo. This happens from time to time and there is not to do to get them in. This is where you have to think ahead and review the latest trends. One of the best things sellers can do now is to review who you are competing against. Then you will be ready to compete well.
Figure out who you are really competiting against. Your agent can set you up to receive the new competitors as they come on the market from the MLS. Much like we do for a buyer when they start looking. I see the competition this was as well. This gives you the knowledge and feel for the market. When its time to react to an offer you will be ahead of the game.
What else can be done when buyers are scarce. Its either improve your condo or lower the price. This is a harder decision but it could be better at times to improve than to base the sale on price. Especially if the improvements are not going to cost one that much. Going in your agent should point out the negatives so you can improve. Now go back and review to see if you did the right thing.
Normally the holidays are not bad as people have time off and will be looking in this time period. It tends to happen almost every year. Buyers will think they can get a condo cheaper now and they are correct. Get in the game when few others are looking. People selling want to start of 2012 fresh and leave a worry behind. Are you leading the pack much like a race to sell……
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Cotton Mills #221, Best Buy in Warehouse District…. Its $169,221 and very nice….
November 17th, 2011 categories: Condo Listings, Warehouse District
Just listed in the New Orleans Warehouse District at 920 Poeyfarre in the Cotton Mills. This condo is priced to sell at below $170,000 for an updated unit with great city views.
The condo is small at 520 square feet of living but seems larger with the 18 ft. ceiling and 3 very large warehouse style windows. The condo fees are small as well at $239 per month. The unit gets a lot of natural light from the second floor windows. The condo sits near the front entrance and the elevator. Its just as easy to walk down the stairs.
The Cotton Mill still remains one for the best places to buy for under $200,000 because of the amenities that it has. It got a fully stocked exercise room. An in ground swimming pool and sunning area. The large courtyards are another place to relax. Its a very secure building with 24 hour security. The condos do come with parking but street parking is available along with several adjacent lots for $125 or pay as needed.
This Cotton Mill Condo has an updated kitchen and bath with custom cabinets, stone counters, stainless appliances and new light fixtures. Its been painted to give it a designer feel. The wood floors are throughout the condo and have been refinished recently. The bedroom is larger than it looks and you have enough room for a small office and plenty of storage above the closet and bathroom. A latter has been attached to make it easy to store your items.
The views of the city and street are almost second to none. Facing the city the large windows provide a lot of natural light but no direct sun. This would make someone a great condo to start out with or a very nice second home. You can finance the purchase with an FHA loan meaning 3.5% down if you are going to live in it as your primary residence.
Once again it is rare to find an updated unit with these views and features for below 170k anywhere in the New Orleans Warehouse District..
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Cotton Mills Condos, One of the best places to buy for under 200k in the New Orleans Warehouse District.
November 13th, 2011 categories: Buyers Agent, Condo Knowledge, Warehouse District
The Cotton Mill Condos located at 920 Poeyfarre has been the choice of many of my clients looking for the condo under 200k that has a lot of amenities. Its a large complex of 288 units spread over an entire city block. It is easily one of the places to look at and purchase for under $200,000. Take a further look on my New Orleans Condos-Cotton Mill Condos for plenty of additional photos.
I will list the reasons that over 30 of my clients have bought at the Cotton Mills. I think the values have been very consistent over the past two years. Its now actually hard to see more than one or two choices that are worth purchasing.
Lots of Amenities- You have a very nice gym with all the modern equipment and free weights. You have a full size swimming pool surrounded by tropical plants. Huge 25,000 square footage of courtyard. You have a large secure lobby.
The Warehouse Feel- You have exposed brick in every unit. Tall ceiling of at least 18 feet in most of the units. The exposed beams and wood floors add to the New Orleans Warehouse District Feel. They always feel larger than the square footage says. Most of the condos have some sort of decent view with lots of natural light.
Security- You have a secure that is manned at all times. The desk person lets in only those that should be there. Packages are delivered at the front desk for pickup. During the day you have more staff available.
Location gets better - Over the last couple of years the Warehouse District has spread out. Being a block from the World War II Museum is now a big plus. You can walk to the St. Charles Streetcar line. The Museum is a great plus for this area of the Warehouse District.
Low Condo Fees- Very moderate fees of around $240-$275 for a one bedroom. That includes insurance for the unit. That includes hot water and cable as well.
Well Managed- On site management with a manager on staff daily. The present management team is one of the best. They are very helpful.
FHA Finacing is Available- The only FHA approved Condo Association in the Warehouse District. This allows for 3.5% downpayments . This means you have to come up with $7000 and ask for sellers concessions. This is an important deal for resale value.
Easy to rent- If for what reason you need to rent your unit, it is very easy to rent. People easily pay 1300-1400 for a one bedroom condo. I see this trend will continue.
Parking is available in nearby lots for monthly parking for 100-125 per month. You can park on the street as well.
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Selling your New Orleans Condo, its a competition to get buyers to see your condo….
November 9th, 2011 categories: Condo Listings
Its an extremely competitive real estate market in New Orleans. The condo market is as well and you are competing for buyers with the other units that are for sale. You can begin to compete better by showing off your condo in a best light with information and photos. Most shoppers start their search on the Internet. They want to see what it looks like and what is said about the unit being sold. They want to know the price, see what it looks like and what kind of updates that the condo has.
There are several ways to compete and the best is to get noticed by telling the story with the best photos and details of your condo. The more you are able to show and tell then the better off your condo my be in the eyeballs of the buyers. People have more time on line to quickly read and know.
Make sure your agent can tell the story through photos and information about the unit. People want to know and many buyers cannot be overloaded when looking for info. They can do it fast when shopping by the Internet. At the same time the agents need to be able to supply clients with the best choices available in a price range.
Photos that show off your condo- Taking enough quality photos with a wide angle lense is the first step. You want to give the buyer a feel of the condo and the features that made you buy it. Let the buyer get a feel for the floor plan, where are the windows, where is the kitchen, where is the condo in the building. The more you can show the better the response that you will get from the buyer and their agent. Sometimes I like to point out the basic feature with words on the photos as we can use 25 photos in the mls plus slideshows and videos.
Important Updates- People will look for different things so make a list of your updates. Some buyers will want to know if a new a/c has been installed lately and what type of unit it is. Some will want to know about the appliances and when were they put in. How about the floors and when were they redone. Others will ask about what stays and what goes ? Light fixtures ? Window Coverings ? Paint job? and we can go on and on. Make the list…..
Things people want to know and value People value views, parking spots, amenities, ceilings heights, exposed beams and bricks, pools, courtyards, exercise rooms, patios, balconies and much more. These are the things you do not see in the square footage numbers but boy do they count and help sell your condo. They are looking for those special things
Life Style Choices Buyers want to know about the complex and the lifestyle of the area. This can be doneas well with a combination of words and photos. What is within walking distance and what do people liek to do. Walk to the Streetcar line, walk to the French Quarter, walk to the Superdome, walk to Magazine Street and much more. What made you decide to buy where you did? Other buyers may be looking for the same thing…..
Selling in todays market is much like the show and tell we used to do in grammer school. You want to paint a picture as best you can online where we are selling 24/7. A few agents do it much better than others. You are selling to buyers and their agents. I always like to hear why you bought and why you liked it so I can get that passed on.
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