Jennifer Athas, Contributor at the Boston Herald, on the Condo Market
Nov 18, 2011|
Jennifer Athas from the Boston Herald discusses the local real estate market.
Transcript - will not be 100% accurate
Yeah. As I get older. I have less and less desire to cut the grass trim the Bush's shovel the snow -- my house I don't really wanna do a whole heck of a lot of used to wasted all that stuff. And now condominiums -- start to look a lot better to -- we're joined by Jennifer at fast from the Boston Herald -- she's gonna talk to us today about condominiums. Jennifer welcome to the show how you doing. While we we appreciate great article today by the way and Harold. Tell me about oh I'd like to start kind of your base level. In the Boston area. Somebody graduates college -- 232425. Years old. -- -- they wanna buy condominium. Pay dearly if you're lucky if you graduate college you're lucky to get a job Payne and 5060000. Bucks right -- you first year too but they -- -- viral state -- I've advised our listeners. To do that very thing during the last couple years. I think real states artificially. Inexpensive. An and I think young people should be buying condos and houses. How much -- have to spend and where you have to go to say find a condominium that he can afford to buy with a fifty or 60000 dollar salary. You know I think that you probably looking -- 300000. Dollar price range and you know there's some great opportunities. Right around Boston and neighborhoods like to make a plane. Somerville Watertown South Boston has. City neighborhoods. Are safe neighborhoods you capital yet they are. They're either easily -- can get into the cities see as parking and and they are great ever. So you said Jamaica Plain Somerville where else water count you out. -- East Boston I hear I as talking to Michelle McPhee and she said that there's some pretty good deals on East Boston. Absolutely East Boston is especially now with the whole Big Dig finished is that it is a great opportunity and your bread and water over their -- you're looking into Boston it's beautiful. How much of a down payment they have to have these kids have JP they just graduated -- college they're probably. Lucky there how -- a student loans let alone money for down payment so they're going through FHA. And in nearby and say it 250000. Dollar condominium how much of a down payment they gonna have to scratch. Yeah we're gonna get vacate because state on -- -- get a -- down payment three and a half percent which is really really great. Three and a half but it. So let's do the math on that on 250000. Dollar Condo or you tell me that they can get into it for maybe 101000 dollar down payment. Absolutely and would be FHA programs can they also are a little bit more lenient in your regular rounds with regard to the down payment you can apart as a gift. You know records get -- and hopefully parents as well. So are the kids do it necessary are you seeing this type of activity -- among younger say the sub thirty generation. Oh absolutely absolutely be thinking I think it's sort of stopping them is they're -- You know timeline as to how long they're going to be in Boston or are in the area. You know it it just basically it's their job security -- simply and that really. You know -- that market down I think. Now what would you recommend for an elder generations such as myself I'm I'm -- the idea will be an empty Nester. By a -- about -- a year and a half to go so. If I wanna sell my place is he gagged you know just keep your comments to yourself well there. Senior housing bill thank you bill where what I go lay here for an empty -- my wife and I we we want to be in which -- -- -- cut the grass. Absolutely absolutely well it depends what your budget is really and I think there are some great opportunities in my article talked about. This new project on over in South Boston townhouse that -- -- west second street you know they're over 2000 square feet and you know -- -- in mind. 700000. For condos and how many bedrooms at that -- for background general -- I want that big because if it's a big my kids a couple. Mean I'd have to get smaller like two bedrooms then record and they won't move in if they if there's only two bedrooms they won't move back home. Absolutely that's what a lot of a lot of comments investors say -- You know you could get closer into the cities to get in in areas like back page or the waterfront. -- you know you're probably looking about a million dollars to use to get your parking -- you're too. You're talking about the ones that two towers that a rate on the water that you. In town. -- -- Harvard -- -- -- together a lot of lot of projects there's he editors the Intercontinental. Others -- war -- -- wore union war. Battery war if you could you'd have. -- have a million dollars to get into those. You know I think for a lot of anti masters to live like -- do in this suburb -- That's the baseline to. Well what about the north and anything there. That -- it's really really -- some small development. Pocketed throughout the north and -- if you have a lot of older buildings there at that that the -- just hard to get the space about Charleston. -- great to Charleston on -- senior laden -- single family actually renovated -- single families cut into two units on that are allowing for some larger units. You have the meteor -- which is part of child out of absolutely gorgeous. Fortieth to go if you want amenities like on and I say amenities obviously indoor parking. Gymnasium. Restaurants. Stuff like that word -- to go and -- stiff to pay for those. You know I think -- you are talking let the full service building right like the Ritz Carlton and the clarity and Intercontinental. And you're basically looking at a thousand dollars a square foot. So whatever your baseline is if you want to better and that's 16100 square feet you're looking at about one point five. And these I am guessing are pretty heavy. Yet the PQD one estimate a dollar a baseline against a dollar -- square foot for your monthly content but then again -- creature. Parking -- -- creature he you're air conditioning everything. Now moved and as those moving or they sell those. You know I think that we have very tight inventory right now an electric building just because construction -- basically at a standstill for about five beat her up. And were starting to see you know that we lessons six on inventory and that's sort of millions plus market and the full service buildings. And electrocuted -- some things that are. Food that's good yes. We what about the had a couple that wants to buy a condominium down on the tape where where are the his -- I've heard nightmares about Cape Cod day Condo developments in terms of you know the association's fall apart additional reserve funds things like that. The you know after -- you know in general. To Condo market on the -- it was soft market. And you know you're looking basically at second home buyers yeah. Times so I think you know attempt to have to do their due diligence -- -- looking at smaller development that the new. And everybody's coming in on the same but. You know you're probably better off an island power exporters there's a nice small -- instructions to -- it to sort -- like count. Now if they're small there's no amenities they let their -- membership to a lot of the club. -- -- So packet village in power exported one of them where you can you have the amenities because -- basically be what's the big one new -- kind of shape is that oh that's actually that's that's done that's so beautiful development. You know I don't know into the shape of the the condominium they just know that it's it's just it's. It is nice it's beautiful I've been you know spent a little time down there. Yet it opera an -- everything into the city itself. -- -- let me ask you condos -- kinda get a bad reputation. Andy I'm I'm curious from your perspective. As to whether or not you think these are gonna be good investments they get a live somewhere radios have to have a place to live but from an investment standpoint if you're young couple you better off with a Condo or you're better off buying a house. You know I think it depends I think I think the prices in the metropolitan areas are gonna continue to increase -- people gravitate towards the city. So I think konduz are definitely and it's a good investment tax. You do you think they'll go up in value over the next 510 years. Absolutely and I think especially here in Massachusetts and in the Boston area because we certainly there's -- You know there's not a lot of land. -- DC AD a lot of foreigners coming in buying condos for their kids when they come to college you elected me go to -- He really any of the colleges in town right I don't know with a population is that I know tops for instance like tufts is about 20/20 5%. Foreign students. Eight DDC a lot of foreigners coming in saying you know what I'm gonna buy a Condo for my kid because I know and have two or three kids going to school in Boston. And they hold them in that it is Lebanon. Absolutely absolutely and they also like places where they can come visit to they don't have to stay in -- because usually they visit every two weeks some months. -- at a time so absolutely. Parents visit their kids to college for two weeks of time. I would I wouldn't and I am not like my kids wouldn't want me to visit at all. And and certainly not for two weeks -- -- economy by buying dinner you know -- that that's about the extent of the that the the trip. Did you think that the year. Pricing wise Jennifer is it better to buy a Condo than it is to say rent an apartment I I talk to young gal she's. She's paying eight hits in Charlestown. 2200 a month in rent. And I actually said why don't you buying a place. I have sympathy I think I absolutely think it's I think it's you know the it's it's really directly to making your first you're here between 25 and 30000 just to rent payment yeah. And antenna that's one year two years it's up to 60000 almost mythic status sixty to absolutely absolutely -- Tough days still tough to get loans -- from the banks. You know I think that I think it depends on the partner and everybody's individual. Circumstances are different I -- you need about a 620 credit score for FHA. And you know unique unique you know figured out it's gonna be there the next two years really. Yeah you know I hope you're right about -- condos -- appreciating in value -- you know the it's. It's it's seems like anybody who's -- real estate almost within the last ten years is down in value on that real estate are they in other ditty about a place. Eight years ago for 500 it's only worth 40415. Dollars and the idea to eat what's your perspective not forgetting condominiums now just on. Boston area real estate is it is it bottomed out and starting to come backers Eric Eric can you tell. Yeah you know I think I think it has I think that you know what I'm thing -- the larger units are actually penetrating I decided to sell the unit. The people you know bought it. Herb probably 200000. Dollars less and I sold it in five years so they actually made. Funny you need money in five years and by pairs so you know I think that it depend to depend on you know that the condition of the unit -- neighborhood. But I think that electric properties are definitely holding their value and definitely you know you're getting a little bit of appreciation there. So the rich people still have money. Oh I guess -- I guess that answered my question I don't. Jennifer thank you very much appreciate your time there are -- Jennifer pass if you wanna take a look at her articles pretty good it's in today's Boston Herald take a peek.