Sunday, December 24, 2006
Sunday, December 10, 2006
Monday, November 13, 2006
Homes: Slow-market savings - the 'buy-down' Private sellers are starting to help buyers pay their mortgages. It's not altruism; it's good business.
By Les Christie, CNNMoney.com staff writer November 13 2006: 4:21 PM EST NEW YORK (CNNMoney.com) --
As the housing market slows, big builders and developers are stepping up concessions and incentives to buyers - now small-time individuals are doing it too.
One such incentive is the buy-down, in which sellers pay up-front payments to reduce buyers' mortgage rates. Buy-downs are popular with developers because they enable the builders to offer savings without actually lowering their list prices, which they hate to do because the lowered price becomes the new benchmark.
One such buy-down is called a "3-2-1," because it lowers buyers' mortgage rates by 3 percentage points during the first year; 2 points the next; and 1 point the third. In the fourth year and ever after, home buyers make the full payment themselves.
"People think that the price is what sells," says Earl Niemoth, founder of Real Estate on the Internet, a Web-based broker in Florida. "But reducing the price won't help very much. Terms are what sells."
In Niemoth's buy-down plan, sellers pay down the first two years of interest. Buyers save 28 percent of their payment the first year, and 14 percent the second.
Home Photos: What a million bucks buys He worked out the arithmetic for a client recently. The house cost $224,900. With a 20 percent down payment, the mortgage principal would be $179,920 and the monthly mortgage payment would be $1,049 a month, assuming a 30-year loan fixed at 7 percent.
The buy-down would lower that to $749 the first year and $900 the second year. The incentive cost the seller $5,397.60 at closing. Another form of buy-down provides less of a hit early on but lasts the life of the loan. According to Bob Moulton, a mortgage broker with Americana Mortgage on Long Island, sellers can pay 2 percent of the entire mortgage amount to lower the interest rate by half a percentage point.
It costs the seller, then, $5,000 to bring a mortgage rate down from, says 6.5 percent to 6 percent on a $250,000 mortgage. That saves the buyer $81 a month on a 30-year fixed but buyers realize that same savings every month for as long as they own the home or have a mortgage. Over 30 years that adds up to nearly $30,000.
According to Julie McWorter, an agent with the ERA Davis and Linn brokerage in Jacksonville, the biggest benefit for sellers who offer this kind of deal is the big boost to buyer interest for properties. "It really increases your showings," she says.
First years are the toughest According to Nancy Alperin, a broker with Maxwell Realty in Philadelphia, many buyers prefer the savings in the early years of the mortgage rather than spreading it out over the lifetime of the mortgage. She represents some properties that offer buyers a five-year, buy-down plan: They would have a rate of 3.5 percent the first year, 4.5 percent the second, 5.5 percent the third and 6.5 percent the fourth and fifth.
"Buyers want the savings now," she says. "Everybody buys furniture and redecorates the first few years." Many buyers are also not planning to stay in the house very long. Their jobs may require them to relocate, they hope to trade up to a better house or they plan to downsize in a few years. Getting the savings early on makes much better financial sense for these buyers.
Niemoth says mortgage buy-downs have been around a long time. He first used the technique more than 20 years ago in Chicago, where he was trying, without much success, to market luxury condos.
"They cost $90,000 for a two bed, two bath in an upscale pre-war building, shows you how long ago this was," he says. "Interest rates were 16, 17, 18 percent back then. I put an ad in the paper offering to pay 8 percentage points of the loan for two years. I got 76 calls the first day. I couldn't renovate those condos fast enough."
By Les Christie, CNNMoney.com staff writer November 13 2006: 4:21 PM EST NEW YORK (CNNMoney.com) --
As the housing market slows, big builders and developers are stepping up concessions and incentives to buyers - now small-time individuals are doing it too.
One such incentive is the buy-down, in which sellers pay up-front payments to reduce buyers' mortgage rates. Buy-downs are popular with developers because they enable the builders to offer savings without actually lowering their list prices, which they hate to do because the lowered price becomes the new benchmark.
One such buy-down is called a "3-2-1," because it lowers buyers' mortgage rates by 3 percentage points during the first year; 2 points the next; and 1 point the third. In the fourth year and ever after, home buyers make the full payment themselves.
"People think that the price is what sells," says Earl Niemoth, founder of Real Estate on the Internet, a Web-based broker in Florida. "But reducing the price won't help very much. Terms are what sells."
In Niemoth's buy-down plan, sellers pay down the first two years of interest. Buyers save 28 percent of their payment the first year, and 14 percent the second.
Home Photos: What a million bucks buys He worked out the arithmetic for a client recently. The house cost $224,900. With a 20 percent down payment, the mortgage principal would be $179,920 and the monthly mortgage payment would be $1,049 a month, assuming a 30-year loan fixed at 7 percent.
The buy-down would lower that to $749 the first year and $900 the second year. The incentive cost the seller $5,397.60 at closing. Another form of buy-down provides less of a hit early on but lasts the life of the loan. According to Bob Moulton, a mortgage broker with Americana Mortgage on Long Island, sellers can pay 2 percent of the entire mortgage amount to lower the interest rate by half a percentage point.
It costs the seller, then, $5,000 to bring a mortgage rate down from, says 6.5 percent to 6 percent on a $250,000 mortgage. That saves the buyer $81 a month on a 30-year fixed but buyers realize that same savings every month for as long as they own the home or have a mortgage. Over 30 years that adds up to nearly $30,000.
According to Julie McWorter, an agent with the ERA Davis and Linn brokerage in Jacksonville, the biggest benefit for sellers who offer this kind of deal is the big boost to buyer interest for properties. "It really increases your showings," she says.
First years are the toughest According to Nancy Alperin, a broker with Maxwell Realty in Philadelphia, many buyers prefer the savings in the early years of the mortgage rather than spreading it out over the lifetime of the mortgage. She represents some properties that offer buyers a five-year, buy-down plan: They would have a rate of 3.5 percent the first year, 4.5 percent the second, 5.5 percent the third and 6.5 percent the fourth and fifth.
"Buyers want the savings now," she says. "Everybody buys furniture and redecorates the first few years." Many buyers are also not planning to stay in the house very long. Their jobs may require them to relocate, they hope to trade up to a better house or they plan to downsize in a few years. Getting the savings early on makes much better financial sense for these buyers.
Niemoth says mortgage buy-downs have been around a long time. He first used the technique more than 20 years ago in Chicago, where he was trying, without much success, to market luxury condos.
"They cost $90,000 for a two bed, two bath in an upscale pre-war building, shows you how long ago this was," he says. "Interest rates were 16, 17, 18 percent back then. I put an ad in the paper offering to pay 8 percentage points of the loan for two years. I got 76 calls the first day. I couldn't renovate those condos fast enough."
Friday, November 10, 2006
Monday, October 02, 2006
Tuesday, September 05, 2006
Nicks Pick For Most Overratted new Project-
Grand Plaza is by far the most overpriced project currently on the market. Don't get me wrong this is an awesome building with a great pool and even a running track/basketball court. The units are in "as is" condition think all White.
The lowest priced unit is just over 600 square feet selling for around $270,000ish plus $250 a month for parking. Recent developer incentives like no assessments and free parking are helping sales but in terms of resale in a couple years the numbers arn't looking good.
Canyon Ranch Living Coming to Chicago-
The world famous spa is turning to 680 N. Rush to create their new project. Adding their name as the 57th hi-rise project in the city. Construction will start late 2007 and move in will be early 2010. It will be easy to guess that prices will be quite high when released
Tuesday, August 29, 2006
Even more hi-rises to go up in the South Loop!
Wow- and you thought the building boom was over- Today developer Frankel & Giles announced new plans for two towers (Modern Glass of course) to be built in the Praorie District of the South Loop- Don't you just love these new places they never give an address. Check out another new project called Lexington Park located on Cermack and Michigan- (2000 south) 1 mile for the "el" train and all the action on Roosevelt.
Wow- and you thought the building boom was over- Today developer Frankel & Giles announced new plans for two towers (Modern Glass of course) to be built in the Praorie District of the South Loop- Don't you just love these new places they never give an address. Check out another new project called Lexington Park located on Cermack and Michigan- (2000 south) 1 mile for the "el" train and all the action on Roosevelt.
Friday, August 18, 2006
Does Anybody else own a Prius in this City?
If so here is a tip...
After 5000 miles I went to a Jiffy Lube type place and got the oil changed and tires rotated. Problem is these places know how to turn off that little light that says maintence required so here is how its done.
Before pressing the power button, hold down the trip meter button. Continue pressing it while you put your foot on the brake and hit the power button. Once the power is on, the odometer will show five dashes instead of numbers. Continue to press the trip meter until all the dashes go away.
Hope that helps!
If so here is a tip...
After 5000 miles I went to a Jiffy Lube type place and got the oil changed and tires rotated. Problem is these places know how to turn off that little light that says maintence required so here is how its done.
Before pressing the power button, hold down the trip meter button. Continue pressing it while you put your foot on the brake and hit the power button. Once the power is on, the odometer will show five dashes instead of numbers. Continue to press the trip meter until all the dashes go away.
Hope that helps!
Tuesday, August 15, 2006
I just found this article in the Sunday Tribune a couple weeks back and thought it was good-
Top 10 Facts to Know When you Move into your First Condo-
Mark Pearlstein, Chicago Tribune, August 6, 2006
1.. Expect assessments to increase annually; years of no assessment increases will lead to a large special assessment for deferred expenses.
2. Be willing to accept decisions made by others, namely the board of directors, in exchange for the convenience of having someone maintain your common property.
3. The association maintains everything outside your unit. Everything inside the drywall is your responsibility.
4. You are responsible for any damage that arises from your unit, regardless of whether you were negligent.
5. You are buying a system where the rules can be changed by an amendment or board regulation. These changes include leasing and pets.
6. If you live in a multifamily building, do not expect the level of a silence of a single-family home. But consider that you have neighbors in proximity of whom you must think.
7. If you own a pet, control it. You don’t have a backyard.
8. Assessments include a forced savings account called reserves.
9. The board must maintain a building for the benefit of present and future owners. The attitude that, “I will not be here in 5 years, so why should I pay for it,” does not apply.
10. Respect the property manager who must fill the role of engineer, social worker, police officer, and financial manager, while attempting to please the board members and the unit owners.
-
Top 10 Facts to Know When you Move into your First Condo-
Mark Pearlstein, Chicago Tribune, August 6, 2006
1.. Expect assessments to increase annually; years of no assessment increases will lead to a large special assessment for deferred expenses.
2. Be willing to accept decisions made by others, namely the board of directors, in exchange for the convenience of having someone maintain your common property.
3. The association maintains everything outside your unit. Everything inside the drywall is your responsibility.
4. You are responsible for any damage that arises from your unit, regardless of whether you were negligent.
5. You are buying a system where the rules can be changed by an amendment or board regulation. These changes include leasing and pets.
6. If you live in a multifamily building, do not expect the level of a silence of a single-family home. But consider that you have neighbors in proximity of whom you must think.
7. If you own a pet, control it. You don’t have a backyard.
8. Assessments include a forced savings account called reserves.
9. The board must maintain a building for the benefit of present and future owners. The attitude that, “I will not be here in 5 years, so why should I pay for it,” does not apply.
10. Respect the property manager who must fill the role of engineer, social worker, police officer, and financial manager, while attempting to please the board members and the unit owners.
-
Friday, August 11, 2006
Taken from the Real Estate Journal.com- I saw this article today and thought it would be a neat thing to add to my blog- (Hope they RealEstatejournal.com doesn't get mad at me)
The Benefits of Buying a Home
In a Cooling Real-Estate Market
By Amy Hoak
From Marketwatch
Residential real estate, a shining star of the national economy that seemed unflappable over the past couple of
years, has hit a speed bump.
Nationally, home price appreciation is slowing down from the rapid pace experienced by many markets over
the past few years. Mortgage interest rates are on their way up. Is this any time to be thinking about investing
in a home? Of course it is -- if you're buying it for a place to live, not as a speculative investment, and can
afford to take the leap.
"Owning a home is still financially not a bad deal, as long as you have the income to support the cost of
homeownership," said Jim Gaines, research economist for the Real Estate Center at Texas A&M University.
Another caveat: "You better figure on living there five or six years to make any kind of profit on the thing."
Investors who hope to profit quickly on home sales, known as property flippers, for the most part have come
and gone from the market, said Raymond Sierka Jr., vice president and regional sales manager with Harris
Private Bank.
At the height of the real estate boom, people would buy houses before they were built at preconstruction rates
only to sell the homes for a profit a short time later, often before construction was even complete. Speculators
in some markets could often sell the property for a 20% to 30% yield, he said.
A normalized real estate landscape boots out those speculators, said Anthony Hsieh, president of online
lender LendingTree.com. "It's just too risky to speculate now," he said.
People now are "buying for the right reasons," said Diana Bull, a Realtor in Santa Barbara, Calif., and a
regional vice president for the National Association of Realtors. Sellers no longer hold all the cards, she said,
which is creating a more balanced market.
Below are several benefits of home shopping in a cooling real estate market -- the silver lining to news
predicting the residential real estate party is over.
More selection
In a growing number of local markets, buyers have more time to think about a home before they make a
decision on whether to purchase it. Last year, that often wasn't a likely luxury.
"Once you as a potential buyer found a house that met your needs, you had to jump on it right away," said
Frank Nothaft, chief economist for Freddie Mac. "One thing that we're seeing nowadays -- compared to six or
12 months ago -- is many markets where homes are staying on the market longer."
Home sales are expected to decline in 2006, yet the year should finish as the third strongest on record,
according to a midyear report given by Nothaft earlier this month. With fewer sales, more housing inventory is
sitting on the market.
It's a change of pace for agents who not long ago didn't have many properties to show their clients, said David
Drinkwater a Realtor in Scituate, Mass., and regional vice president for the National Association of Realtors.
"Two or three years ago, there was a great deal of reacting in the marketplace because we had a smaller
inventory pool to work with," Drinkwater said. That's not to say that a well-priced property won't move quickly in
this environment, he said, but buyers need to educate themselves so they can recognize a housing gem when
they see it.
More room to negotiate
Current conditions in many markets also afford consumers a better opportunity to negotiate.
"This market is forcing everybody to slow down and take their time," Bull said. In that time, buyers have more
of a say at the bargaining table.
In fact, getting a fair deal is even more of a priority for homeowners who can no longer bank on high
appreciation rates to save them if they pay too much, Drinkwater said. If you slightly overpaid in a bidding war
at the height of the real estate boom, high appreciation rates helped correct the error, he said. In many
markets there is now no such safety net.
Average home value appreciation nationwide should be around 7% for the year, and is predicted to slow even
further to 6.2% in 2007, according to Freddie Mac. Local markets vary, however, and even as some markets
are cooling, others are still on an upward climb.
Even if you, as a buyer, have the benefit of being more of a haggler than you could have been last year, still
remember to look for a place that meets your needs and your budget, Nothaft said. Do the calculations and lay
the groundwork before your house hunt ever begins.
Interest rates are still relatively low
It's easy to get caught up in the upward scooting of mortgage interest rates. But take the northward movement
with a grain of salt.
Some people act like "Chicken Little" and feel as if the sky is falling when interest rates go up a quarter of a
point, said Gaines of the Real Estate Center in Texas. Instead, keep it in perspective.
Interest rates are still way below what they were five or six years ago, Gaines said. Even if the 30-year hits 7%
by the end of the year, investors should keep in mind the double-digit rates of yesteryear.
The annual average for a 30-year fixed-rate mortgage was 16.63% in 1981, and worked its way down to 9.25%
in 1991, according to Freddie Mac records. Homeowners may not get rates quite as low as what they could
secure in 2004, when the annual average for the 30-year fixed was 5.84%. But relatively speaking, it's still a
deal.
A home is still a good investment
If you're in it for the long haul -- that is, buying a home with the intention to live in it for years -- a home is still a
decent investment.
Consider this piece of information from the National Association of Realtors: Since record keeping began in
1968, the national median home price has risen every year. In a balanced market, home values typically rise at
the general rate of inflation plus 1.5 percentage points. That's to say nothing of the tax benefits that come with
owning your own home.
A look at the volatility of the stock market also proves the benefits of real estate as an investment, said Sierka,
of Harris. "The downside of real estate is better than the downside on just about anything else," he said.
Email your comments to rjeditor@dowjones.com.
-- July 31, 2006
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The Benefits of Buying a Home
In a Cooling Real-Estate Market
By Amy Hoak
From Marketwatch
Residential real estate, a shining star of the national economy that seemed unflappable over the past couple of
years, has hit a speed bump.
Nationally, home price appreciation is slowing down from the rapid pace experienced by many markets over
the past few years. Mortgage interest rates are on their way up. Is this any time to be thinking about investing
in a home? Of course it is -- if you're buying it for a place to live, not as a speculative investment, and can
afford to take the leap.
"Owning a home is still financially not a bad deal, as long as you have the income to support the cost of
homeownership," said Jim Gaines, research economist for the Real Estate Center at Texas A&M University.
Another caveat: "You better figure on living there five or six years to make any kind of profit on the thing."
Investors who hope to profit quickly on home sales, known as property flippers, for the most part have come
and gone from the market, said Raymond Sierka Jr., vice president and regional sales manager with Harris
Private Bank.
At the height of the real estate boom, people would buy houses before they were built at preconstruction rates
only to sell the homes for a profit a short time later, often before construction was even complete. Speculators
in some markets could often sell the property for a 20% to 30% yield, he said.
A normalized real estate landscape boots out those speculators, said Anthony Hsieh, president of online
lender LendingTree.com. "It's just too risky to speculate now," he said.
People now are "buying for the right reasons," said Diana Bull, a Realtor in Santa Barbara, Calif., and a
regional vice president for the National Association of Realtors. Sellers no longer hold all the cards, she said,
which is creating a more balanced market.
Below are several benefits of home shopping in a cooling real estate market -- the silver lining to news
predicting the residential real estate party is over.
More selection
In a growing number of local markets, buyers have more time to think about a home before they make a
decision on whether to purchase it. Last year, that often wasn't a likely luxury.
"Once you as a potential buyer found a house that met your needs, you had to jump on it right away," said
Frank Nothaft, chief economist for Freddie Mac. "One thing that we're seeing nowadays -- compared to six or
12 months ago -- is many markets where homes are staying on the market longer."
Home sales are expected to decline in 2006, yet the year should finish as the third strongest on record,
according to a midyear report given by Nothaft earlier this month. With fewer sales, more housing inventory is
sitting on the market.
It's a change of pace for agents who not long ago didn't have many properties to show their clients, said David
Drinkwater a Realtor in Scituate, Mass., and regional vice president for the National Association of Realtors.
"Two or three years ago, there was a great deal of reacting in the marketplace because we had a smaller
inventory pool to work with," Drinkwater said. That's not to say that a well-priced property won't move quickly in
this environment, he said, but buyers need to educate themselves so they can recognize a housing gem when
they see it.
More room to negotiate
Current conditions in many markets also afford consumers a better opportunity to negotiate.
"This market is forcing everybody to slow down and take their time," Bull said. In that time, buyers have more
of a say at the bargaining table.
In fact, getting a fair deal is even more of a priority for homeowners who can no longer bank on high
appreciation rates to save them if they pay too much, Drinkwater said. If you slightly overpaid in a bidding war
at the height of the real estate boom, high appreciation rates helped correct the error, he said. In many
markets there is now no such safety net.
Average home value appreciation nationwide should be around 7% for the year, and is predicted to slow even
further to 6.2% in 2007, according to Freddie Mac. Local markets vary, however, and even as some markets
are cooling, others are still on an upward climb.
Even if you, as a buyer, have the benefit of being more of a haggler than you could have been last year, still
remember to look for a place that meets your needs and your budget, Nothaft said. Do the calculations and lay
the groundwork before your house hunt ever begins.
Interest rates are still relatively low
It's easy to get caught up in the upward scooting of mortgage interest rates. But take the northward movement
with a grain of salt.
Some people act like "Chicken Little" and feel as if the sky is falling when interest rates go up a quarter of a
point, said Gaines of the Real Estate Center in Texas. Instead, keep it in perspective.
Interest rates are still way below what they were five or six years ago, Gaines said. Even if the 30-year hits 7%
by the end of the year, investors should keep in mind the double-digit rates of yesteryear.
The annual average for a 30-year fixed-rate mortgage was 16.63% in 1981, and worked its way down to 9.25%
in 1991, according to Freddie Mac records. Homeowners may not get rates quite as low as what they could
secure in 2004, when the annual average for the 30-year fixed was 5.84%. But relatively speaking, it's still a
deal.
A home is still a good investment
If you're in it for the long haul -- that is, buying a home with the intention to live in it for years -- a home is still a
decent investment.
Consider this piece of information from the National Association of Realtors: Since record keeping began in
1968, the national median home price has risen every year. In a balanced market, home values typically rise at
the general rate of inflation plus 1.5 percentage points. That's to say nothing of the tax benefits that come with
owning your own home.
A look at the volatility of the stock market also proves the benefits of real estate as an investment, said Sierka,
of Harris. "The downside of real estate is better than the downside on just about anything else," he said.
Email your comments to rjeditor@dowjones.com.
-- July 31, 2006
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Nick Patterson is now a certified relocation specialist!!! So what does that mean? Basically it means I was able to sit though a 6 hour lecture without falling asleep. (But the turkey sandwish I had at lunch was great) So.....if your company is helping you sell or buy in the Chicagoland area I am here to help!
Tuesday, August 08, 2006
Estimated Costs Associated with the Purchase of Your Home
As the buyer, you may be responsible for the following costs:
Attorney’s fees $400-$700
Property Inspection $250-$400
Lead Paint Inspection $200-$350 (optional)
City of Chicago transfer Tax (stamps) $7.50 per $1000 of purchase price
Homeowner’s Insurance Varies
Settlement of Escrow Closing Fess $175 up to $100K, plus 50 cents for every adtl $1K
(paid to title company to handle closing)
Costs Associated with Lender
Loan Application (& Appraisal) $250-$400
Closing Points or Loan Origination Fee 1-3% of loan (optional)
Private Mortgage Insurance (PMI) Required if loan amount is less than 80% of purchase price
Underwriting Fee $250-$500
Document Preparation or Recording Fee $100-$150
Flood Certification Fee $20-$40
Lender’s Title Insurance Policy $150-$400
Tax Service Fee (if taxes held in escrow) $50-$100
Reserve Fund for Tax escrow 2-7 months prepaid real estate taxes
(may be received as credit from seller)Prepaid Interest Interest on loan from closing
As the buyer, you may be responsible for the following costs:
Attorney’s fees $400-$700
Property Inspection $250-$400
Lead Paint Inspection $200-$350 (optional)
City of Chicago transfer Tax (stamps) $7.50 per $1000 of purchase price
Homeowner’s Insurance Varies
Settlement of Escrow Closing Fess $175 up to $100K, plus 50 cents for every adtl $1K
(paid to title company to handle closing)
Costs Associated with Lender
Loan Application (& Appraisal) $250-$400
Closing Points or Loan Origination Fee 1-3% of loan (optional)
Private Mortgage Insurance (PMI) Required if loan amount is less than 80% of purchase price
Underwriting Fee $250-$500
Document Preparation or Recording Fee $100-$150
Flood Certification Fee $20-$40
Lender’s Title Insurance Policy $150-$400
Tax Service Fee (if taxes held in escrow) $50-$100
Reserve Fund for Tax escrow 2-7 months prepaid real estate taxes
(may be received as credit from seller)Prepaid Interest Interest on loan from closing
Tuesday, August 01, 2006
Just found a great website!!
Check it out- www.chicagoloopalliance.com Here you can download for free audio tours of the downtown area! Great fun!
Check it out- www.chicagoloopalliance.com Here you can download for free audio tours of the downtown area! Great fun!
Sunday, July 09, 2006
Monday, June 26, 2006
Sunday, June 18, 2006
What’s the Deal with Hotel/Condo’s Anyway?
The new hybrid housing phenomenon is hitting Chicago hard! Currently with 10 projects going up containing around 2,274 units you will soon be seeing condo/hotels throughout the city. This concept is better known in places like Florida and New York but expanded when developers found obtaining loans for new hotel projects more difficult. So they began selling hotel condos as a means of building equity.
Basically, it’s the same game as owning a hi-rise condo. You have a deed to the property, you pay taxes and monthly assessments. However, when you are not in your residence you can place your home in a rental pool and generate income. At some hotels, limits are placed on the number of nights owners can use their condos and in others, condo owners can stay in their units an unlimited number of night’s per year.
As you can guess, 60% of the buyers of these new hotel condos are empty nesters from the surrounding suburbs using their condos as weekend homes. Another 20% are from out of state while the remaining 20% are business looking for corporate suites or companies that operate vacation clubs. The prices tend to be higher on a per-square foot basis but there is a lot of variety, ranging from a 350 square foot king room for $220,000 upwards to $9 million for the deluxe. Remember, these are already furnished hotel rooms-many come with plasma TV and MP3 hook up stations.
So, is this a good way to make money? Don’t count on it! Due to heavy regulations from the SEC, developers can’t provide formulas or even talk about a units investment potential. Based on the dynamic nature of the hotel industry it makes it almost impossible to guess monthly costs. In some hotels, owners will never see the income in the form of a check, rather in credits that go towards monthly assessments or using hotel amenities, like the spa, restaurant, etc..
Those who us their hotel condo as a vacation home might find that it’s a worthwhile investment when they factor in lifestyle benefits, tax benefits and the likely appreciation of the unit when it comes time to sell.
The question I get the most is- “What happens to my stuff when I want to rent out my condo” Well, the hotel has a staff that comes in and stores it all in lockers and will return all the belongings to their original positions, when you come back. But don’t forget, this is still a hotel so everything costs extra!!
Hope this helps increase dinner conversation!!
Nick
PS- If you know anyone looking to buy or sell please feel free to pass along my contact info!
The new hybrid housing phenomenon is hitting Chicago hard! Currently with 10 projects going up containing around 2,274 units you will soon be seeing condo/hotels throughout the city. This concept is better known in places like Florida and New York but expanded when developers found obtaining loans for new hotel projects more difficult. So they began selling hotel condos as a means of building equity.
Basically, it’s the same game as owning a hi-rise condo. You have a deed to the property, you pay taxes and monthly assessments. However, when you are not in your residence you can place your home in a rental pool and generate income. At some hotels, limits are placed on the number of nights owners can use their condos and in others, condo owners can stay in their units an unlimited number of night’s per year.
As you can guess, 60% of the buyers of these new hotel condos are empty nesters from the surrounding suburbs using their condos as weekend homes. Another 20% are from out of state while the remaining 20% are business looking for corporate suites or companies that operate vacation clubs. The prices tend to be higher on a per-square foot basis but there is a lot of variety, ranging from a 350 square foot king room for $220,000 upwards to $9 million for the deluxe. Remember, these are already furnished hotel rooms-many come with plasma TV and MP3 hook up stations.
So, is this a good way to make money? Don’t count on it! Due to heavy regulations from the SEC, developers can’t provide formulas or even talk about a units investment potential. Based on the dynamic nature of the hotel industry it makes it almost impossible to guess monthly costs. In some hotels, owners will never see the income in the form of a check, rather in credits that go towards monthly assessments or using hotel amenities, like the spa, restaurant, etc..
Those who us their hotel condo as a vacation home might find that it’s a worthwhile investment when they factor in lifestyle benefits, tax benefits and the likely appreciation of the unit when it comes time to sell.
The question I get the most is- “What happens to my stuff when I want to rent out my condo” Well, the hotel has a staff that comes in and stores it all in lockers and will return all the belongings to their original positions, when you come back. But don’t forget, this is still a hotel so everything costs extra!!
Hope this helps increase dinner conversation!!
Nick
PS- If you know anyone looking to buy or sell please feel free to pass along my contact info!
Monday, April 17, 2006
Chicago Named #1 for Corporate Relocations and Expansions. With $6.5 Billion of corporate capital invested in 389 projects
More Info. www.rismedia.com
More Info. www.rismedia.com
Sunday, April 09, 2006
It offical, American Invsco has just gotten the permits to build there long awaited tower in the vacant land in front of 3660 Lake Shore Drive. 212 unit- 28 story tower and 16 townhomes will soon rise on the site.
No prices have been released and sales are set to begin at the end of the year.
Contact me to learn more
No prices have been released and sales are set to begin at the end of the year.
Contact me to learn more
Monday, March 20, 2006
Monday, March 06, 2006
In 2004 the average price of a home in Chicago was $259,000 in 2005 a 14% increase to $296,000
Other markets that had huge increases between '04-'05
Cincinnati- 28%
Indianapolis- 31%
Los Angeles- 19%- $539,000 average price
Milwaukee- 24%- $251,000 ave.
Phoenix- 41%!!
San Fran- 19%- $679,000 ave.
Washington DC- 20% $479,000 ave.
Other markets that had huge increases between '04-'05
Cincinnati- 28%
Indianapolis- 31%
Los Angeles- 19%- $539,000 average price
Milwaukee- 24%- $251,000 ave.
Phoenix- 41%!!
San Fran- 19%- $679,000 ave.
Washington DC- 20% $479,000 ave.
Taken from the March 5th Sunday Trib
"Sellers Who Skip Brokers may be losing their Edge"
This is the case of the missing 10%. Its a tale of lost millions, and it stars a cast of thousands-the thousands of owners who sell their houses without professional help.
It seems that in their desire to save the 5-7% fee that agents charge for their services, FSBOs-as in for sale by owners get 16% less than owners of comparable houses who put the transaction into the hands of an experienced agnet, according to a survery by the national association of realtors.
Tuesday, February 21, 2006
Chicago Planning for Citywide Wi-Fi!
I found this story on CNN.com today and I thought it would be a fun thing to share!
CHICAGO, Illinois (AP) -- The nationwide rush to go wireless appears poised to extend to its biggest city yet.
Chicago is launching an effort to offer wireless broadband, city officials said Friday, jumping on the Wi-Fi bandwagon as similar initiatives proceed in Philadelphia, San Francisco and smaller cities.
Hoping to extend that wireless blanket to all 228 square miles, the city plans to ask technology companies this spring to submit proposals for the project.
While it's too soon to say how the system would operate, the goal is to make Internet access "broad and affordable" for residents and heighten Chicago's appeal for businesses and tourists alike, according to Chris O'Brien, the city's chief information officer.
The city did not specify goals for how much the system would charge for access. In Philadelphia, EarthLink Inc. is building a citywide network that will charge a wholesale rate of $9 a month to Internet service providers that would then resell access to the public at an undetermined price.
"We think it's important for residents of the city and tourists and businesses to have lots of different ways to connect," O'Brien said. "For a city as big as Chicago, with the vibrant business community and diverse citizen base that we have, you want to make sure all kinds of technology are available to them as they work and enjoy entertainment options."
Continued on the back….
If all goes smoothly, the system could be running as soon as 2007, O'Brien said. That would all but certainly leave the city behind Philadelphia, which hopes to have its entire system in place late this year or early next year. But the size of a Chicago network would dwarf Philadelphia's planned 135-square-mile network or anything now in place.
Currently, the biggest municipal Wi-Fi network is the all-free MetroFi in the south San Francisco Bay area at 35 square miles, according to Wi-Fi expert Glenn Fleishman. By spring, that title will be passed to one covering nearly 110 square miles in the neighboring Phoenix suburbs of Tempe and Chandler, Arizona, he said.
Cities' race to get into municipal broadband is being increasingly embraced by Internet service providers, since most cities are enlisting private companies to help build the wireless systems rather than doing it on their own. EarthLink created a division last year to solicit deals similar to Philadelphia's with the 50 largest cities.
Chicago's main phone company, AT&T, says it similarly would not be opposed to a city-initiated effort.
"AT&T always has believed that the best approach is to stimulate investment in broadband," spokesman Rick Fox said. "As long as you're working with the private sector, that's a good thing."
The idea of a citywide Wi-Fi network got a big thumbs-up from several Chicagoans who were sitting in cafes with their laptops Friday. "I'm always searching for Internet hotspots," said Beibei Que, a law student getting in some work at a coffee shop. "I like to have the Net at my fingertips wherever I go."
Chicago officials haven't yet committed to specific goals for the project, but they don't want to spend city funds. They have been closely watching Philadelphia's project, including its priority on low user costs and its intent to ensure that more computers and training programs are available for low-income residents.
Copyright 2006 The Associated Press.
I hope this increases dinner conversation-
Sincerely-
Nick
PS- If you know anybody looking to buy or sell in the future please feel free to pass along my info!
I found this story on CNN.com today and I thought it would be a fun thing to share!
CHICAGO, Illinois (AP) -- The nationwide rush to go wireless appears poised to extend to its biggest city yet.
Chicago is launching an effort to offer wireless broadband, city officials said Friday, jumping on the Wi-Fi bandwagon as similar initiatives proceed in Philadelphia, San Francisco and smaller cities.
Hoping to extend that wireless blanket to all 228 square miles, the city plans to ask technology companies this spring to submit proposals for the project.
While it's too soon to say how the system would operate, the goal is to make Internet access "broad and affordable" for residents and heighten Chicago's appeal for businesses and tourists alike, according to Chris O'Brien, the city's chief information officer.
The city did not specify goals for how much the system would charge for access. In Philadelphia, EarthLink Inc. is building a citywide network that will charge a wholesale rate of $9 a month to Internet service providers that would then resell access to the public at an undetermined price.
"We think it's important for residents of the city and tourists and businesses to have lots of different ways to connect," O'Brien said. "For a city as big as Chicago, with the vibrant business community and diverse citizen base that we have, you want to make sure all kinds of technology are available to them as they work and enjoy entertainment options."
Continued on the back….
If all goes smoothly, the system could be running as soon as 2007, O'Brien said. That would all but certainly leave the city behind Philadelphia, which hopes to have its entire system in place late this year or early next year. But the size of a Chicago network would dwarf Philadelphia's planned 135-square-mile network or anything now in place.
Currently, the biggest municipal Wi-Fi network is the all-free MetroFi in the south San Francisco Bay area at 35 square miles, according to Wi-Fi expert Glenn Fleishman. By spring, that title will be passed to one covering nearly 110 square miles in the neighboring Phoenix suburbs of Tempe and Chandler, Arizona, he said.
Cities' race to get into municipal broadband is being increasingly embraced by Internet service providers, since most cities are enlisting private companies to help build the wireless systems rather than doing it on their own. EarthLink created a division last year to solicit deals similar to Philadelphia's with the 50 largest cities.
Chicago's main phone company, AT&T, says it similarly would not be opposed to a city-initiated effort.
"AT&T always has believed that the best approach is to stimulate investment in broadband," spokesman Rick Fox said. "As long as you're working with the private sector, that's a good thing."
The idea of a citywide Wi-Fi network got a big thumbs-up from several Chicagoans who were sitting in cafes with their laptops Friday. "I'm always searching for Internet hotspots," said Beibei Que, a law student getting in some work at a coffee shop. "I like to have the Net at my fingertips wherever I go."
Chicago officials haven't yet committed to specific goals for the project, but they don't want to spend city funds. They have been closely watching Philadelphia's project, including its priority on low user costs and its intent to ensure that more computers and training programs are available for low-income residents.
Copyright 2006 The Associated Press.
I hope this increases dinner conversation-
Sincerely-
Nick
PS- If you know anybody looking to buy or sell in the future please feel free to pass along my info!
Wednesday, February 01, 2006
The Bloomingdales Building is Going Condo
http://wibiti.com/HomePageView.aspx?v=v&c=0&HpID=%c2%bdZZ%e2%80%a1
Prices start around $1.5 Million up to $5 Million plus
http://wibiti.com/HomePageView.aspx?v=v&c=0&HpID=%c2%bdZZ%e2%80%a1
Prices start around $1.5 Million up to $5 Million plus
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