Archive for the 'Condo Knowledge' Category
Historic New Orleans Condos are becoming more popular!!
January 29th, 2012 categories: Condo Knowledge, Historic Homes
Historic New Orleans Condos are becoming a popular option in New Orleans. Most of these condos will be found in the Lower Garden District, Garden District and Uptown. These condos were once a home or multi-family residence. They come in all sizes and shapes. They come in all prices as well.
The complexes are generally small so most do not have a lot of amenities. Most do have locations where walking is great and they are close to the streetcar line, shops, coffee houses, bars and restaurants. The best ones have all the historical features left in tact.
The one difference you will see is how the developer finished the unit and how much was done to the entire building. Some developers will do the basics when turning it from a rental unit to a condo. Others like this one pictured below will put much more into the entire package.
This one has a newer roof, updated electrical, gas stove, brick walk ways, freshly painted, great windows that all open, nice wood floors, fireplace, new heat and a/c and as many details left as possible. Few fire places are actually working as they were coal burning in the day. The owners would bring hot coals from the kitchen and put them in the small fireplace for the night. We normally only have 30 such nights in New Orleans. Often they are found in every room.
The way the condo is finished should be reflected in the price. The bargain today may turn into a money pit down the road. You should treat the inspection of these condos more like you are buying a home. Check out the entire building and review the upkeep of the building. Many times residents think nothing needs to be done until it is broken. Best to have someone in the association that knows that it is better to fix small things before they become bigger. It sound like common sense but then again……
It always pays in the end to get the best unit which is the balcony and porch units as those hold their values better. Most people want the premium condos when it comes to resale. Its very hard to put a price on a balcony or porch but you will surely enjoy the time you spend on them. Kinda of like priceless…
You tend to find more people living in these historic condos on a full time basis as they are in great locations and have more room. This however makes it great for a second home person knowing that someone is there all the time. They are also easy to rent as well. Lets walk down the street and grab a bite to eat…
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Second Homes in New Orleans are Picking Up, Condos make a great choice…
January 14th, 2012 categories: Buyers Agent, Condo Knowledge, Second Homes
The New Orleans Market is doing very well for second homes as we start the new year of 2012. The main areas of interest are the French Quarter, Warehouse District, Garden District, Lower Garden District and Uptown. Most second home buyers want two bedroom places although good number of buyers are looking at one bedrooms as well. The buyers fall int0 one of two categories…
New Orleans Connections - Buyers with connections are those that may have lived here or gone to school in the past. Many have moved away and all miss what New Orleans has to offer. They tend to look in various areas of the City of New Orleans because they know it better. Some have relatives and want to get back to visit them and their families.
Buyers Just with a love to come- I am seeing more and more buyers who have no real connections to New Orleans through family but just like to come here often. They may have come to Jazz Fest, a convention, or on business and just like it here. These are the buyers that make me appreciate what we have here.
In both these categories you tend to see people looking at the purchase as a retirement condo to spend part of the year here. Many plan to live in New Orleans for several months at a time. Some can even work in New Orleans part time and then return home between visits.
One thing most second home buyer have in common is that they have the 20% down required by lenders, will put a lot down or will pay cash for the condo. Most want a place that is carefree and has been updated. Most tend to be very picky in what they are looking for. We have to remember that a second home is a desire and they want what they want. I do see the price ranges getting higher over the last 2 years. However you can find some nice places as low as 140k in the Uptown area.
I always get asked about flooding and crime in New Orleans. The majority of the City did flood during Katrina but over 95% of the condos in the areas mentioned did not flood at anytime in the past. There is crime in the city but where you have condos the crime is not a big issue. The condos tend to be in the more expensive areas of town and are in neighborhoods where people are not interested in crimes.
The other very interesting factor is second home buyers is the length of time they look. Some take a while to purchase but know what they want. They take more time to decide before pulling the trigger. In today’s market its easy to keep clients updated with the Internet if we know about what they are looking for. I can answer the questions and send listings as they become available. The most interested do their homework and have a good idea of what they want.
The other group has been looking for a while but when I get them as a client they are ready to purchase. Most of these can weigh the pluses and minuses of each condo and make that decision.
Neither group wants to see the overpriced condos and those that fit do not fit their needs. Lately it has been very ease to get don to the best 5 properties before they start searching. Lately if they know the area it may be hard to find even 5 winners. I am still amazed at some of the deals my clients have gotten so I am never surprised. I supply then with lots of sales data so they can make an informed decision and answer their questions as honestly as I can. Visit www.nolahomesearch.net to start your search.
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Orleans Parish Property Taxes….Due by Jan 31. 2012 for the year2012…It’s in Advance..
January 3rd, 2012 categories: Condo Knowledge, Real Estate Taxes
Orleans Parish Collects its property taxes for 2012 next month which is opposite every other Parish in Louisiana. The tax is due for 2012 by the end of Jan. 2012. The property tax rate did not go up but actually decreased slightly. For a $200,000 dollar property the drop would be $6.50. This year 67% of the properties did not go up in value which means most people will see the slight break. Others may not be so lucky as there property was reaccessed either up or down. Most Up….No surprise here.
The bills go out next week. If you mortgage company is paying your tax out of escrow then check with them in Jan. to make sure they got the notice and will be paying. If you pay and they pay it takes a while to get the money back. One of our clients did that several years ago and it took 9 months for them to get their money back.
The tax rate is now 147.5 mills per hundred thousand of value meaning if your have a property valued at 100k then you taxes are $1475 per year. If you live in the property then you get a 75k homestead exemption which you have to file for. This is statewide. If you forget to file then its gone. I did have a seller who forgot and missed it for 5 years.
The homestead exemption is worth $1106.25 so make sure to file after your purchase at the Assessors office. The value of your property will be based on your sales price.
The assessor could get your property value wrong as well. Then you will need to file an appeal. Do this as soon as you know the numbers. As agents we help our clients by documenting what we think the value is through comparisons of like properties from recent sales. This is not the norm as most people are not paying on what there property is now worth.
How would you like to be paid before you do the work a year in advance ?
Assessor’s Office- City Hall , 1300 Perido Street, Room 4e01, 504-658-1300.
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Sweat Equity in Your New Orleans Condo….
December 2nd, 2011 categories: Condo Knowledge, Condo Listings
Often times a good way to increase the value of your own condo is to do some of the work yourself. This is building sweat equity in your condo, its increasing the value with a few work days or nights. The best way to make this happen is cleaning and painting.
Painting- Doing a professional job and choosing the right colors are the biggest factor in your success. Use colors that people will be attracted to. Get advice just to make sure. One of the biggest things that works is to show off you high ceiling and crown molding. It just gives your unit a fresh look so that you can enjoy it bit will also increase the appeal.
Save the paint for touch up as it will get scuffed.
Flooring- This may get a little more expensive but refinishing floors is not that hard or expensive with today’s tools. Most times the floor will come out lighter and much cleaner look. Getting rid of carpets in today’s market is a plus.
Light Fixtures No need to spend a fortune here. Its just nice to see something different than the standard fixtures that the developers put it. Its always noticed by buyers when they are looking.
Bathroom Mirrors- Its so easy to replace that plain mirror with a beveled frame mirror that you can now pick up from many of the home decor shops for under a hundred dollars. Its money well spent.
These are a couple of things that came to my mind while thinking of how to get things updated in a very dull condo that I have.
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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 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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Coliseum Square Neighborhood Condos, Condos and home live togeather…
October 24th, 2011 categories: Condo Knowledge, Garden District
This is a good example of one of the historic condos in the coliseum area that I have recently sold. Its an historic building that has been totally redone, its basically new construction at this point. Surrounded by million dollar homes with green space in the form of an urban park called Coliseum Square.
There are several condo association within 3 blocks of the Square and park. Located in the Lower Garden District, its close to everything. This one is located 1446 Camp Street across the street from the Park and its many oak tress and fountian. Its only 4-5 blocks to the New Orleans Warehouse District which is still very much in demand. Walk to Magazine Street and watch the changes going on there.
As housing prices firm so do the prices and demand for condos that fit peoples needs. People are still picky and want the most for their money. The big difference in this area is the type of conversions that have taken place over the last ten years. Many conversions are turning small apartment complexes that were old homes into condos. This gives you the historic feel of a modern place with high ceilings, large windows, wood floors and some nice views that would be very expensive in other areas of town.
The unit we sold is the balcony unit overlooking Coliseum Square with with plenty of natural light. Each unit has gated parking. There are only 6 units within the renovated old home. The developer went over the top trying to keep the old features while at the same time making this almost new construction.
The prices in area make the neighborhood much more affordable the neighborhoods surrounding it. The historic condos fit nicely into the neighborhood and add life to the total neighborhood. The more owners you have in an area, the more they care about the quality of life and their investment. Just another area of New Orleans that gives you a taste of the Crescent city…..
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What will be the next Hot area in the New Orleans Condo Market ?
October 23rd, 2011 categories: Condo Knowledge, Garden District
When you wonder where the next hot area for condos you have to look at what is currently hot and what that area has to offer. Can that experience be duplicated elsewhere ? How is the housing market doing in that area ? How close is that area to where you would like to be but cannot afford to live there.
The condo market is an alternative to a house for many. The condos in New Orleans are becoming a second home to many. Condos are a way to avoid paying rents that are very high at the moment and have been that way for a couple of years. You can live in an area that has very expensive homes in a condo. So if the housing market is strong then the condos in the area will tend to do well. If people are just discovering the area then it only takes 10-15 clients to make a trend.
Two of the areas that I see that happening is the Lower Garden District and the Garden District. The housing market is doing well in these areas. Its close to or next door to the New Orleans Warehouse District which is the hottest condo market right now. Transportation and drive times are small. The prices are cheaper. The demand for historic condo conversions is still alive.
People are discovering the Magazine Street corridor and all that it has to offer. Shops of all kinds. Lots of restaurants and coffee shops and its all walkable. Its close to downtown and close to LSU and Tullane University hospitals. Close to the new VA hospital as well. Its close enough for students and law students going to Tulane and Loyola Universities. Its close to the new VA Hospital, LSU Med school and Tulane Med school. The furture demand is going to be there.
I have experienced the increase sales in the area in 2011 as I have sold 5-6 units in the area. I have also seen the properties come and go at a rapid pace when the price was right. A number of them went under contract in a matter of days. This is even when financing has been hard.
The other area that will begin to show more promise is the Lakeview and Lakefront areas as the market has been doing well there as well. Have to save that for a second blog.
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The New Orleans Condo rental market continues to be tight….
August 25th, 2011 categories: Condo Knowledge
The New Orleans condo rental market has been great for the last 5 years if you are a landlord. Its much harder if you are the renter. You almost have to fall into some of the best places.
There have been few new condo developments to come on line as demand has been steady. There has been big increase rental units downtown and along the Tulane Avenue corridor nearer the medical schools were added to the mix from the “go zone” tax credits following Hurricane Katrina. Makes you wonder why the government is making it so hard to get things off the ground. In real estate things are all local but rules are made for Vegas and Miami.
The New Orleans condo has been strong as with the Warehouse District having the premium locations. The Jefferson Parish Market is not as good but has help steady well. Now for the reasons this may be so. It get down where people want something safe, historic and very walkable neighborhoods.
The movie industry has created a lot of demand for people wanting a furnished or unfurnished places from 3 to 6 months. These guys want to experience New Orleans and I am sure many come back year after year to work. Some have already bought places and rent them out when they are not here.
Jobs being shifted around, New Orleans has had opening for jobs and people are come here from all areas of the South to work. They are looking for much the same thing. The companies are putting them up here and they like to experience urban living. The most adventurous and motivated come.
More students and younger new people have moved here. New Orleans is a much younger city now than it was 5 years ago and condo living suits the young people better. Tulane Med. School and LSU Med schools are almost in the Warehouse District. Law Students from Loyola and Tulane are always looking for condo rentals. Then more young people are coming for the opportunities which was never the case before Katrina.
Buying is being off due to uncertain economic times. Higher down payments have made it harder to buy. Many of these people opt to rent to see if they are going to stay in New Orleans. A percentage of these people will buy but they need to save a little before jumping in.
The housing market in some areas of New Orleans are hot right now. These areas of the Garden District and Uptown are leading the New Orleans Housing Market.
These are all great for landlords and have helped steady values. There are fewer foreclosures and short sales when your unit can easily be rented out. They now become great vehicles for nice returns. I am always looking for deals but they have been hard to find unless you are patient with the process.
One note on Fannie Mae repos is that the people that will live there get the first 15 days to get the bid in. They go fast and you may have to pay higher than the asking price but you will still be 20% or more under the market price. The clients that want the best possible deal usually miss out and lets someone else get a great deal. People that do this for a living see it all the time.
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