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First Time Buyers are in the Market Again ! Maybe a condo is the best way to start…in the New Oreans Real Estate Market

     We are beginning to see an increased interest in first time buyers coming into the housing market.  Some of these buyers want a home and some may want a condo as it is generally more carefree and less expensive than a home.  The cost is just a lot less than owning a home in most cases. 

     A new buyer can get into the neighborhood where they would like to be with a much lower price tag than a home.  These are the areas where condo sales have been best.  Its only natural for people to gravitate to demand areas.  Its all about location and the life style that that location offers.

    The interest rates are below 4% at the present time. I got quoted a rate today from my favorite lender where your principal and interest is $442.10 if you borrowed a $100,000.  Borrow $200,000 then you double that and you are at $884.20.  These are fantastic rates and rival any in the last 40 years.  You just pay your equity down much faster.  Add in the interest deduction on your income taxes and its just a winner.

402 Julia Street, The Lofts, New Orleans Warehouse District

        The other item many first time buyers overlook is the cost of ownership of a home versus a condo.    The insurance cost is becoming  a larger and larger factor in owning a home.  I am working with two new buyers on a home and their flood and home owners insurance is going to be $2400 a year for a home around $140,000.  Its close to $200 a month.  Then you have to pay for water and utilities.  The exterior upkeep with time or money. This is going to average at least 200-250 per month over the term of ownership if nothing major goes wrong. 

     When buying a condo the insurances are in your condo fees.  The water, exterior maintaince, upkeep of the property are in your condo fees. The fees for a 140k condo are generally less than $250 per month. In Jefferson that number can be less than $200 per month.  Many condos include the Internet, cable, gyms, pools, courtyards, and management fees in your monthly condo bill.  The amenities do matter if you are on the go and need to concentrate on your work while not over paying for a place to live.

Condo Amenties in New Orleans Condos

 

    In  the end your cost could be as much as 50% less owning a condo over a home in the same price range.  This is because in a condo you are part of the condo association where these cost are less because they are shared among all the owners.  You do have to pay for an HO6 policy for the interior of your unit plus contents.  This will run $700-$800 per year.

    Its a lot of numbers to digest.  Once digested this may be a good move.  The condos will generally be smaller than a home but much more updated in terms of applainces, kitchens, baths ect.  Most have been recently redone in the last 10 years.

    Then the last thing but not the least is that there is no more rent to pay to someone else.  You are basically renting from yourself.  Paying $1500 per month is $36,000 for two years and you will never see that money again.

Federal Fibre Mills Condos, The gym, New Orleans Warehouse District

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA