Home Buying in Midtown>Question Details

Jack, Home Buyer in Atlanta, GA

I want to invest in a condo which has retail spaces and restaurants at the bottom level. The price starts at

Asked by Jack, Atlanta, GA Tue Mar 25, 2008

mid 200s. Is it worth investing??? I know nobody knows the future but given the criteria of a excellent midtown location in Atlanta and upscale condos. Do condos like these build good equity?? And also do 2 bedroom condos sell better than 1 bedroom ?

Jack

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Jack - you state that you "want to invest in a condo which has retail spaces and restaurants at the bottom level," in the mid-200's for a starter in the building, right? Is it worth investing? Only you can determine that - you've heard from others here that your criteria is more about a lifestyle choice that it is a financial investment, wouldn't you agree?

What is your investing experience up to this point in your financial history?

You ask "do condos like these build good equity??" I'll say no, and under the criteria that most professional real estate investors would use for "good equity" then I will say, no, absolutely not.

2 bedrooms always offer more options for a broader base of buyers, particularly when 2 bathrooms come along with them.

Midtown will become more dense, and density will increase demand. Supply will reach a pinnacle in a few years, but a long term hold for most Midtown condos is the only way to build equity - sweat equity in reasonable improvements and cash equity through paying down your debt.

Welcome to Midtown Atlanta where the players play, and a lot of broke folks own real estate.
1 vote Thank Flag Link Thu Mar 27, 2008
I think there is big foreclosure auction coming to your town in May
http://www.ushomeauction.com/

anyways

good luck
0 votes Thank Flag Link Wed Mar 26, 2008
Jack,

Don't rule out other areas for these types of investments. Shadowbrook located next to town center park in Suwanee,Ga has done quite well for buyers and investors.

Also Suwanee being ranked one of the top 10 places to live in the US by money magazine has not hurt either. If you are interested in looking into this area be sure to contact me. I live and work here!

James Dudley
ERA Sunrise Realty
678-781-7418
James.dudley@era.com
0 votes Thank Flag Link Wed Mar 26, 2008
Jack...the intown condo market has been depreciating for 5 plus years. New building and new conversions have continued holding down the value for those who purchased in the last "hot" building. With all that being said, Midtown is one of the strongest condo markets inside the perimeter and there are some opportunities; however, I would suggest that you utilize the services of a knowledgeable buyers agent which is free to you. When you say "invest" I assume that you will not be living in the unit, is this correct? If you plan on purchasing for the purposes of renting then you need to look at the local rental market also to ensure that you will be in a positive situation. You need to look at real estate as a long term investment and not a get rich fast investment. You need representation because you do not want to be one of the many homeowners that have seen their values decline where they have to bring money to the table to close a condo they have owned for 4 and 5 years. No one can ever predict the future but trends are very telling.

Additionally, if you are looking at a pre-sale I would watch your investment carefully as the building completes and units begin to close. Over the past few years many pre-sale contracts have not closed because the buyers walked away from their earnest money and their contracts because of depreciation from time of contract to time of closing. This further hurts the numbers.

Proceed with caution and representation...
Web Reference: http://www.homesbylorie.com
0 votes Thank Flag Link Wed Mar 26, 2008
Jack -
These are very good questions. I have been working with clients purchasing one of these as an investment as well. The are (at least) 3 main buildings in the Midtown Mile area and each has it's different features, floor plans, etc.

Be sure that when you compare the recent sales that you look at all the features and use the unit number as nearly every unit has a slightly different floor plan - which direction is the view? How close to the amenities? One of the biggest things we have looked at (and learned) is about some of the future development plans - to try to ensure that our views will not be blocked within the year.

As far as 1 bedrooms vs. 2 bedrooms I honestly haven't seen much difference overall - obviously two bedrooms sell for more, but they also cost more and in some buildings association fees are higher for them.

I have LOTS of information and would be happy to share some of it with you or answer any more questions.

Best of luck to you!
Web Reference: http://www.leeadkins.net
0 votes Thank Flag Link Wed Mar 26, 2008
Hi Jack,
You are correct in saying that the future is an unknown. However, you can usually count on a two bedroom being in higher demand than a one and price points in Georgia are determined by location, location, location. As far as your equity question, the best starting point is to find a buyer's agent who you trust. The agent will run some statistical analysis for you. For example, what is the current and past absorption rate in the area, what is the average list to sales price and what has the percentage change been in the sales prices for the past three years. The greatest vehicle for most people to generate wealth is to invest in real estate and to hold the property. Building equity should be a long term goal of at least 5 years. If your currently renting and this location offers you a way of life that you want at a price point you can afford, then the answer to your question is yes.
0 votes Thank Flag Link Tue Mar 25, 2008
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