Disclaimer - this is a blog post and not a dissertation on interest rates. There are an almost infinite number of inputs to the pricing of rates and only a simple model is being discussed here... I once had a professor tell me the secret to predicting the interest rate. He told us that interest rates have a tendency to either go up or down typically at some point in the … [Read more...]
The Downtown Richmond VA Condo Market is Poised for Recovery
Statistically speaking, the Downtown Richmond VA Condo Market is as poised for recovery as any segment in the Metro. We maintain a website at RichmondVaCondos.net that tracks available inventory by market segment and project. It also tracks much of the sales data that is illustrated below. The following screenshot shows overall market inventory count the entire City of … [Read more...]
Is Richmond a $1M Condo Town?
If the recent market activity is any indicator, then the answer is 'YES.' Is it a $2M condo town? It is getting closer... In the past several months there have been several instances of condominiums or town homes selling in the upper $900's to well over $1M. These sales are mostly occurring in the two projects that one would expect (Vistas on the James and Rockett's … [Read more...]
Converting Apartments to Condominiums
This is not a how to or step by step guide in turning an existing apartment complex into condominiums. For the most part, any decent real estate attorney can help you draw up 'Condo Documents' and have them registered with relative ease and for a reasonable fee. For less than $10,000, you can convert apartments to condominiums and suddenly have 6, 12, 25 or more units for … [Read more...]
Avoiding Mistakes
** 6/20/2013 - I should note that since this article was written, Nolde Bakery began a sales effort of the remaining developer owned units. I had labelled Nolde as 'avoid at all costs' but that may no longer be the case. If the developer has made the commitment to sell the remaining units and a 'warrantable' financing situation can be attained, then Nolde will become a viable … [Read more...]
What You MUST Know When Buying a Richmond VA Condo
Buying a Richmond VA condo comes with a completely different set of risk factors than buying a home in Richmond does. From financing to underwriting to appraising, the additional layers of risk inherent in a condo purchase must be understood in order to make an informed decision. While many of the same principles that you would use in buying ANY real estate still apply … [Read more...]
Understanding Lending Means Understanding Risk in Richmond VA Condos
When the financial world began to capsize in 2006 (with the Richmond VA Condo market largely feeling the thud in the summer of 2008), the world of mortgage lending changed dramatically. The pendulum that had swung as far to one side as to allow "NINJA Loans (No Income, No Job, No Assets)" now swung back the other way so far as to disallow almost every loan. Condominiums, with … [Read more...]
Buying vs. Renting Near VCU/MCV
I would like to offer the following debate to the parents of VCU students and their Medical School counterparts who are coming to Richmond this summer (or who have already arrived) and who need to decide whether to buy or rent a home near the VCU or MCV Campus. You should buy a house or condo near the VCU campus. Now I understand that my position on this is not without … [Read more...]
