View Full Version : Specific real estate situation

11-30-2005, 01:21 PM
For someone considering buying a condo in Atlanta, GA, built in the 1970s in the $155k range (2bd/2bath)[location is excellent, exterior is good, interior is excellent]: what are the implications of being surrounded (within 1/2 mile) by new townhomes and condos being built currently/have been built in the last 10 years that are going for $250k-$330k?

Are these likely to appreciate much? Likely to be bought out? What's your opinion on buying in this scenario if you currently rent the condo and it is only 1.5 miles from your job (been there 1.5 years) that you plan on being at for 2 more years at least?

As far as financials, this condo is affordable to me; not easily affordable nor "will barely be able to make ends meet" affordable, but affordable.

Thanks for reading!

11-30-2005, 01:42 PM
I would be looking at the condo fees. Normally the older the building the higher the fees. Party due to the fact that there isnt much to fix in a new building as opposed to an older one.
If they are higher then look at how that would affect your bottom line.

If you can wait, see if you can get a deal on a new condo/townhome thats in the early phases of development.

If the fees are close enough to the newer building then I think you'll be doing fine with the older building.

I can't see how you could lose if your there for 2 years
ie even if it goes down you've probably made some cash by saving rent. ( if the market crashs Id rather have the cheaper place because they tend to lose less value % wise than the more expensive ones)

Keep in mind I know nothing about the housing market in Atlanta but have experince with the market here in Canada.

11-30-2005, 08:19 PM
I owned a condo built in the 70's. (Was president of the association as a matter of fact.) Beware of units hitting 30 years old because of the way reserve analysis works. You may have to pay a lot in dues/special assessments, especially if the reserves are underfunded.

11-30-2005, 08:31 PM
my brother lives in alpharetta and his townhouse he bought a little over a yr ago brand new for about 155k he told me its worth about 170 right now....don't know how that compares to where your looking in atl