Apartments vs. Condos | Renting vs. Owning

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twincitizen
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Re: Renting vs. Owning | Apartments vs. Condos

Postby twincitizen » December 3rd, 2015, 10:37 am

In the process of shitting all over the dated fixtures/shelving/appliances in this condo, I'll point out that it is not worse than my 1972 apartment in CARAG, for which I pay nearly $900/month (with a weaker amenity package). It may be tough to sell this condo to someone currently living at 222 Hennepin or Nic on 5th, but perhaps not so tough for anyone living anywhere more than 15 years old.

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Sacrelicio
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Re: Renting vs. Owning | Apartments vs. Condos

Postby Sacrelicio » December 3rd, 2015, 10:40 am

twincitizen wrote:In the process of shitting all over the dated fixtures/shelving/appliances in this condo, I'll point out that it is not worse than my 1972 apartment in CARAG, for which I pay nearly $900/month (with a weaker amenity package). It may be tough to sell this condo to someone currently living at 222 Hennepin or Nic on 5th, but perhaps not so tough for anyone living anywhere more than 15 years old.
I think rental in the rest of the city vs. condo downtown are different...someone buying downtown probably wants something updated and more luxury. Someone might buy it and renovate it and then rent or resell it, sure, but I don't know if someone looking to live downtown will do that. Just my uninformed opinion, I don't have extensive knowledge or any experience buying condos.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby MNdible » December 3rd, 2015, 10:48 am

While probably not ideal for millennials, I could totally see my parents buying a place like this when they sell their house.

(Its sister-property 1200 On The Mall is actually the one that I've been eyeing for them.)

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Re: Downtown Minneapolis General Topics & Development Map

Postby twincitizen » December 3rd, 2015, 10:55 am

amiller92 wrote:
Sacrelicio wrote:
MNdible wrote:$153K for a condo in one of the best locations in town, and people are complaining about old appliances and carpet?
The exterior and common spaces are dated too and I wouldn't want to take out a mortgage on a place like that, probably won't go up in value much if at all.
They re-did the lobby/entryway a few years ago and I think they did some work on the pool deck too (never actually been out there).
That unit has a ton of upside.
I think perhaps the "ton of upside" was a few years ago when you could snap up units in this building (and others like it) for around $100-120k. I think the upside is largely gone at >$150k. My perception, after years of online househunting (but not really IRL), is that there seems to be a price ceiling for studio/1BR condo units in dated buildings. Even in neighborhoods that are improving drastically in livability (adding multiple grocery stores, new high-end rental buildings, etc.) Just look at the 1BR units in Summit House (400-410 Groveland) or Centre Village. Prices on smaller units seemingly do not inflate the same way that single-family homes do in boom times.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby amiller92 » December 3rd, 2015, 11:41 am

Yeah, that it's a one bedroom seems like the real challenge. I know people have been snapping up and renovating two bedrooms, but if you've got a cash on hand to do the renovations, you might want something bigger.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby QuietBlue » December 3rd, 2015, 12:32 pm

Sacrelicio wrote:I think rental in the rest of the city vs. condo downtown are different...someone buying downtown probably wants something updated and more luxury. Someone might buy it and renovate it and then rent or resell it, sure, but I don't know if someone looking to live downtown will do that. Just my uninformed opinion, I don't have extensive knowledge or any experience buying condos.
I think people's expectations have risen a lot over time as well. I could see how someone who is coming from a fancy new college student apartment building, for example, might see a place like this as a downgrade. Plus, when the housing market crashed, people got used to being able to buy a newly updated home for a song and not having to do the work themselves. With rents and selling prices being much higher than they used to be, people are going to have to dial back their expectations a bit.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby QuietBlue » December 3rd, 2015, 12:41 pm

amiller92 wrote:Yeah, that it's a one bedroom seems like the real challenge. I know people have been snapping up and renovating two bedrooms, but if you've got a cash on hand to do the renovations, you might want something bigger.
I would think too that a larger percentage of people that would buy a studio or 1BR are single as well, which limits the amount of money they'd have for it (as opposed to buyers with two incomes).

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Re: Renting vs. Owning | Apartments vs. Condos

Postby twincitizen » December 18th, 2015, 2:43 pm

The Mayor of Carver has an "urban cabin" weekend home in Lowertown (in Union Depot no less!): http://www.twincities.com/localnews/ci_ ... in-getaway

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Re: Renting vs. Owning | Apartments vs. Condos

Postby twincitizen » December 23rd, 2015, 2:42 pm

Article about financing multi-family housing (2-4 units), particularly for first-time buyers, owner-occupied, etc. Interesting stuff!
http://www.nytimes.com/2015/12/13/reale ... -home.html

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Re: Renting vs. Owning | Apartments vs. Condos

Postby twincitizen » February 1st, 2016, 9:54 pm


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Re: Renting vs. Owning | Apartments vs. Condos

Postby Nathan » February 5th, 2016, 10:10 am


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Re: Renting vs. Owning | Apartments vs. Condos

Postby trigonalmayhem » February 5th, 2016, 3:42 pm

I read that article like 3 times earlier today and never could figure out what the "But..." part was supposed to be. But I don't expect much from citypages or that author in particular after some of his ill-informed anti-development rants in the past.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby Nathan » February 5th, 2016, 4:17 pm

I think the but was that people are going to start buying again and the vacancy levels are evening out, so prices shouldn't keep rising?

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Re: Renting vs. Owning | Apartments vs. Condos

Postby winterfan » February 11th, 2016, 9:33 am

MNdible wrote:While probably not ideal for millennials, I could totally see my parents buying a place like this when they sell their house.

(Its sister-property 1200 On The Mall is actually the one that I've been eyeing for them.)
I'm curious about this statement. Why is it not ideal? Location? Style?

Full disclosure, I'm Gen X and I somewhat agree with the earlier statement about giving the middle finger to the younger generation. That said, with interest rates so low, my husband and I were casually discussing buying property for our offspring now (and maybe renting it out for the next decade or so).

The only thing stopping us is that maybe they will decide to move elsewhere, won't want to live in that neighborhood, etc. It might be overstepping our role as parents. I believe in helping the next generation, but giving them too much isn't so great either. I just wonder if in 10 or 15 years we will be lamenting that decision (I'm already sort of regretting the decision when a lot of those foreclosures came on the market a few years back).

As to the matter of renting vs. owning. I'm in the camp of owning. But I also believe in not overbuying, paying the property off early (i.e. 15 yrs vs 30) and not paying extra for "upgrades." One of the struggles I have with condo ownership is that I am very DIY. It would irk me to have to pay monthly fees for a lot of things I could do myself and don't mind doing (shoveling, landscape, exterior maintenance, etc.). Plus, I like having direct control over energy use, etc. I would think a lot of people would feel that way, but maybe it's just me.

I realize I'm rambling about a few different subjects, but there you have it.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby MNdible » February 11th, 2016, 10:07 am

Not ideal because it's a little outdated and doesn't have the amenity package that they've grown accustomed to.

Not ideal because even though the location is super convenient to downtown, it's also not in the white-hot North Loop, or even in the moderately-hot Mill District.

As I said previously, I think there's real value in a property like this, but it's probably not something you'll appreciate unless you're in the right frame of mind to.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby David Greene » February 11th, 2016, 2:11 pm

winterfan wrote:As to the matter of renting vs. owning. I'm in the camp of owning. But I also believe in not overbuying, paying the property off early (i.e. 15 yrs vs 30) and not paying extra for "upgrades." One of the struggles I have with condo ownership is that I am very DIY. It would irk me to have to pay monthly fees for a lot of things I could do myself and don't mind doing (shoveling, landscape, exterior maintenance, etc.). Plus, I like having direct control over energy use, etc. I would think a lot of people would feel that way, but maybe it's just me.
Yeah, that's pretty much my reasoning too. I like the fact that I can put up solar panels, add an EV charger, etc. Hell, I've even thought about putting in a public-ish charger off the alley but I'm not sure that's even legal.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby grant1simons2 » February 22nd, 2016, 7:07 pm


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Re: Renting vs. Owning | Apartments vs. Condos

Postby at40man » February 24th, 2016, 8:59 am

Twin Cities Housing Availability hits 10 year low: http://www.kare11.com/news/twin-cities- ... w/53047992

I like following StPaulRealEstateBlog.com, and this has been a regular theme -- every month Teresa posts the MLS stats per neighborhood, and it's been interesting to see. The average St. Paul house is on the market for only 70 days.

Image

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Re: Renting vs. Owning | Apartments vs. Condos

Postby winterfan » February 24th, 2016, 5:14 pm

The West 7th prices seem really high to me. I checked some of the closed sales in past few months and I didn't see any abnormally high priced properties that would skew the average.

But the housing availability isn't surprising. I hardly see any properties for sale in S/SW Mpls. If I do, they tend to be starter type homes.

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Re: Renting vs. Owning | Apartments vs. Condos

Postby mamundsen » March 1st, 2016, 7:49 am

Good housing supply is insanely low everywhere. We have been looking in the NE metro since the fall and a few come close to being what we want, but they accept other offers before we can get there.

I just accepted an offer on our house, $5k (2%) over what we were planning to list it for, but we never listed. This was a friend of a neighbor that desperately wanted to get into the neighborhood. My realtor had thought our ask was optimistic and that we should be ready to accept 5% below ask. It was a 7%+ swing without the hassle of listing. Awesome!

Now we just hope some better options for us come on the market.


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