This is the second City Walk unit to hit the list in less than a week.
Again City Walk is a nice low rise condominium project located in downtown's Marina District. There are no view restricting projects or other neighborhood changes so the decline in property values are completely market oriented.
Type: Listed on MLS(#066055267)
Resale Price: $620,000
Cost: $650,000
Loss@6% Sales Expenses: $67,200
Loss%: 10.34%
Purchase Date: 10/15/2004
Holding Period: 23 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1225
Purchase Details: view
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12 comments:
Mr. Brightside great blog. I don't want to threadjack your blog is there a way to contact you with some info?
I'm following a repo that is underwater >$100K. Thanks again for the info. you provide.
swimjet,
Interesting. I have not heard that 101 Market is renting again altough it would not surprise me. I also doubt they would put out a press release so we'll have to sleuth around to find out.
I'll put up a post that talks about the closed sales at the conversions downtown and I think would be good to a monthly stats post on these projects since they are good indicator to the market's health.
bub,
You can reach me at brightside@inbox.com.
I'd love to hear the details.
Mr Brightside -
I live in Atria as a renter, just moved in two months ago. The developer built these as rentels, then converted them to condos, and now is both renting & selling. Anything they can get right now they will take - renter or buyer - and they are getting a lot of renters right now and no buyers. Keep an eye on this one because owners here are underwater.
As a renter here, I love the location, but would never buy in this building at these prices. The contractors did a shoddy job during the conversion, and it's apparent that these were built as apartments when you hear your neighbors walking around upstairs.
downtown sideliner,
That's a great read on the building! Can you give us a sense for what the rents are like there?
Are the owners in the building activity talking about the decrease in values?
The owners are feeling the slowdown and they put a unit on the MLS to generate demand (MLS 061069826). Check out the reduction in price on that one, it is for sale from the builder I believe.
Ours is a 680 sq ft one br. They have them listed for rent at $2200 / mo, but they will negotiate lower rents. We got them down to $1680, which still seems expensive, but it's hard to find a rental in a good location downtown. Units similar to ours are listed at $420K, that is some big time negative cash flow when you run the numbers owning vs renting. Renting is much more desirable at these prices.
Does your 1br have laundry in unit?
Josh
yes, stacked laundry & 1 parking space underground.
30 year fixed loan, 100% financed, 420,000 at an average rate of 6% (low, assuming 20% of the principle on a second at a slightly higher rate with the majority at 5.9%). This also assumes you come up with your closing fees in cash. You have a mortgage payment of just over $2500. Tack on HOA fees (probably in the range of 250-400, I'll guess at 300 for now), and property tax (about $400 a month)...
Your total payment is about $3200 a month to own it. You are paying $1680 to rent it. I'd say you are in the better situation, but, hell, what do I know?
According to the mortgage calculator (http://www.vlender.com/cgi-bin/calc/rent_vs_buy.cgi)
assuming the price of the unit does not drop at all for the next 5 years and you get only 7% in a mutual fund with all that extra money (tax and all that is factored in)...
At the end of 5 years, you are $50,815 better off after those 5 years renting.
Of course, you might just blow all that extra money on beautiful women and exotic locations.
On a side note, if you still believe in real estate appreciation in this market, your place would have to go up 10% in value over 5 years to have the same benefit as renting.
Very interesting..used to live in SD and have been considering buying in Marina District, but have been waiting for the market to stabilize. Glad to find this blog to keep an eye on what's happening. Thanks all.
Do you know how the market is in Little Italy?
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