Archive for February, 2008
New Orleans Warehouse District Condos, Are we seeing more second homes in the New Orleans Warehouse District?
February 19th, 2008 categories: Warehouse District
For many years the New Orleans French Quarter was the only place people thought about when thinking of a second homes. In recent years the New Orleans Warehouse District and the Uptown New Orleans area are also areas of great interest for second homes. Condos are the perfect answer in many cases because the buildings and common areas are maintained for you so you can fully enjoy your stay. The Warehouse District is across the street from the French Quarter. The area is much cheaper and less congested. Parking is easy to come by.
Many of the second homes are family affairs and the new attractions such as the World War 11 Museum, River Walk, Harrah’s, New Orleans Convention Center, various new hotels, restaurants, museums, art galleries add to the pluses of an area. People also like the Warehouse look that features updated kitchens and baths that are readily available in the Warehouse District. Many of the building have amenities such as gyms, security, parking and pools that people like to enjoy. The amenties are big pluses if you ever decide to rent your unit. Corporate units are in short supply if you decide to go that route
The Warehouse District has easy access to the St. Charles Ave. streetcar line, supermarkets, Magazine Street shopping corridor and the Louisiana Superdome/New Orleans Arena. The second home residents like the security and the management of the various complexes as they can leave and come back in 3-4 weeks and nothing has changed and all is taken care of. Its easy to hop on the interstate which easily connects to the I-10 for points East and West. The historic nature of the warehouse buildings are a big attraction. You can stay a weekend and never use the car and eat at world restraunts and walk with history. Every block has something.
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New Orleans Condos, 1750 St. Charles Condos
February 18th, 2008 categories: New Orleans Condo Reviews, Uptown NOLA
The 1750 St. Charles Ave. Condos are almost down town but not quite. The 7 story building takes up the entire block and has 221 condos surrounding a very large landscaped courtyard. Built in 1980 and converted into condos in 2005, these are one of the best buys when it comes to looking for space and security in Uptown New Orleans. The entire first floor is parking for 320 cars plus the lobby and the managers office. Every car is waived in by 24 hour security guard into the garage where several elevators lead you to your unit.
The 1750 units either have courtyard views or street views with most views being very acceptable. The developer did get an extra 10k per unit for units on the 5th and 6th floors when first sold to the public as condos. The 7th floor units are the penthouse units in the rear of the building only. Your advantage here is a private hall and some higher views. Most the units are tow bedroom units of about 1450 sq.ft and fewer one bedrooms of about 1000 sq. ft. or more. There are a few three bedrooms on the corners.
The entry is through the lobby or the interior garage. You have a management office and security guard station in the lobby. The courtyard is well maintained and looks like a tropical park a few steps away from all the units. The condos completely surround the courtyard and you cannot see them form St. Charles Ave.
When these were initially sold as condos in 2005 there were a lot of elderly people that lived here because of the services and in house staff. This has begun to change over time as more people have moved in and out of the units. It is a very quiet place to live with easy access to the expressway and to the west-bank. I have sold units to several young doctors and a medical student in the past couple of years. It does not have a lot of historical features but is a well built building. It does have nine foot ceiling and a decent amount of light in each unit. There is a large well equipped gym on the second floor. This is a complex that you like or dislike after about 3 minutes. The condo fess tend to be on the higher side to pay for the security, first class upkeep and on site management. There are no dogs allowed in the building.
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New Orleans French Quarter’s Most Expensive Homes
February 17th, 2008 categories: French Quarter, Market Trends
Quoting from a most recent article from Frobes.Com by Matt Woolsey, The New Orleans French Quarter is still alive and well. I know my business being mainly second homes in the Quarter has picked up in the last 8 weeks. I have 2 new clients and both are still looking for the right thing. There are a lot of listings but nothing nice in their price range. Neither is in the most expensive range so thought I would pass this along.
“Most memorable Mardi Gras stories involve, in some way, a balcony.
“ Above the street, behind the wrought-iron railings, and before color-soaked storm windows is where the luckiest experience the festivities, lording above the spectator-lined parade route, then retiring to courtyard parties thrown by the city’s krewes and grand dames.”
“You could hustle your way in, if you’re well connected.”
Photo Gallery: French Quarter’s Most Expensive Homes
“Or you could buy into the French Quarter, New Orleans’ oldest neighborhood. But it’ll cost you. The landmarked area with about 3,000 residents boasts several luxury properties featuring shaded courtyards, wrap-around balconies and details like pressed tin ceilings and French marble mantles. Like much of the nation, sales are sluggish, but price-per-square-foot figures are about where they were pre-Katrina.”
“I think that it’s a hard message to send that the French Quarter and areas that visitors would see when they come into town look fine,” says Michael Wilkerson, owner of French Quarter Realty. “But it’s a small part of it. The market outside of the French Quarter isn’t doing as well.”
“Traditionally, the French Quarter acts as a second-home location to residents from all over the country who rent out their mansions when they aren’t in town. That still goes on, but brokers say that an increasing number of buyers are from New Orleans, reaffirmed in their commitment to the city’s rebuilding and looking to land an iconic home in the city’s most famous neighborhood. “
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New Orleans Condos, To Buy or Rent? Have you thought about it?
February 16th, 2008 categories: Condo Knowledge, Julie's Mortgage Tips
There are several things to consider when you are thinking about buying. The first is how long do you plan on being in New Orleans? If your answer is more than 18 months then buying may be the best way to go. Paying rent of $1200 per month is expensive and over 48 months its $57,600 and you have nothing to show for it. You will have a hard time finding a place that would sell for 200k that you could rent for $1200, but lets use the 200k price with zero down as an example.
1. Borrowing 200k at 6% your note will be $1200 per month for principle and interest. The interest each month is $1000 and the decrease in principal each month is $200. The equity increases monthly as your principal decreases each month. At the end of four years you should have over $10,000 in equity. $1o,ooo of equity for you. It cost you less than $48,000 in interest. The interest portion gets smaller each month.
2. Your condo fees should run on the average between 200 and 300 per month. You will not see this money again as it is insurance, maintenance and services. This is gone but it protects your investment. Your taxes will run about $1700 per year. The combination of taxes and condo fees will run between $400 and $450 per month for each. This is an expense of $4800-$5400 per year or about $20,000 over 4 years as an expense.
3. You get to deduct interest and taxes from your federal and state income tax. If you pay 25%-30% in taxes the saving are between $300 and $350 per month or on a yearly basis between $3600 and $4320. This is your saving forever. The higher brackets will save much more. Saving about $4000 on your taxes is huge every year or $16,000 over 4 years.
4. Appreciation, The increase on your units value. Picking the right unit in this market can still get you some appreciation. At 2% per year appreciation of the sales price that is $4000 per year. You get this each year and its yours to keep after 2 years, you pay no taxes on the gains if you have lived here 24 months. That is huge after 4 years. $16,000 for you. This is a conservative figure based on past New Orleans History.
Rent -$57,600 Buy Interest -$48,000
Tax Breaks + $16,000
Taxes/ fees - $20,000
Appreciation +$16,000
Equity +10,000
Owning your own place is priceless, its yours. Be your own landlord.
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Japanese Magnolias in New Orleans, its early Spring Now!
February 16th, 2008 categories: NOLA Gardens
The Japanese Magnolias are beautiful small trees or large bushes to have in your yard. They have been in profuse blooms the last 2 weeks in South Louisiana. The small trees will grow to between 15 ft. and 30 ft. high. All the blooms tend to bloom at once, right before the leaves come out. The purple, white and pink blooms are your chooses. You have to buy them now to make sure which you are getting. They bloom like clock work.
This is the one that I have in my front yard growing under a large oak tree. Its most likely 25 years old. Once the blooms are finished the whole tree will be full of light green leaves. Its called a Japanese Magnolia but is not native to Japan. They are really carefree in the humid New Orleans climate and are very pretty with just the leaves. The blooming tends to happen about the time of Mardi Gras. In fact I took this photo on Mardi Gras day.
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New Orleans Condo Search, Knowing where to start! Filtering your Choices?
February 15th, 2008 categories: Condo Knowledge
Knowing the price range is the first order of business when you are shopping for a New Orleans condo. Often times knowing the price range will determine where and what you will find in various areas of the city. Know what you can afford and what your total note will be. This means talking to a lender or mortgage person to find the details. I can tell you about taxes, condo fees, and other expenses but I cannot tell you what you can afford other than by rule of thumb numbers. This is the proper way to start. Make the price range that you are looking in a 10-15 % range once you have found the comfort range.
Just as important is to know where you would want to buy or begin to narrow the areas down so you can see the differences. Many times people will start to look in one area and realize that another area that is close by meets or exceeds all their needs and is much cheaper. They also may have never thought about area until I call it to their attention.
The types of units and the amenities that you want in a condo are going to further narrow or filter you choices. The type of condo is important as historic renovations are generally more expensive than the 1970’s apartment conversions. Quality of life and location tend to go together.
The amenities like parking, security, gyms, high ceilings, pools, and the updates desired will narrow the field down even more. Its much like a filter as you pour in the selections and filter out the things you would not like. There may be a hundred choices but once you filter your needs, you come down to 5-6 units that will meet your needs. Your criteria may have to change or the price range may have to be increased.
Do not forget the potential resale value. This is what most other people will like. This is what other people will pay for or will be more popular. 
Most people tend to like the same things and those are the ones that retain their value better. This is how a realtor with experience in this field is worth his pay.
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New Orleans Mortgages, What is PMI?
February 14th, 2008 categories: Julie's Mortgage Tips
What is PMI?When can PMI be removed?
PMI is tax deductible.
PMI stands for Private Mortgage Insurance. PMI is required when the borrower does not have 20% down payment towards the purchase of a property. PMI is insurance against default. If the borrower defaults on the loan the Private Mortgage Insurance Company pays a portion of the loss.
The lender may allow you to remove PMI after two years of paying successfully on your loan. The lender usually will order an appraisal to make sure that your loan is 80% loan to value. After the appraisal is complete the lender can then remove the PMI.
PMI is tax deductible for borrowers. MI is fully deductible for tax payers earning up to $100,000 a year and partially deductible for those with incomes between $100,000 and $109,000.
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New Orleans Condos, Who owns the Courtyards of your condo association?
February 13th, 2008 categories: Real Estate News
The answer to the ownership of the common areas is simple, its you. The common areas can be many or few depending upon the size of the complex or the type. You however do not have an equal ownership in most cases as the most common method is to give each unit, a % ownership based on the square footage of your unit to that of the total complex.
Common areas include courtyards, parking areas for visitors, lobbies, hallways, swimming pools, gyms, elevators, roof top areas, and land. You pay for the upkeep, taxes and insurance of these areas in your monthly condo fees. You can find your ownership per centage in the condo docs. Common areas are part of your value as it makes your condo complex more in demand than others.
Its very seldom that land value becomes an issue as to value but it happened to a friend of mine whose condo in Destin, Florida was destroyed by a hurricane several years ago. The Hurricane wiped out the entire complex destroying all the units. There were 36 units that collected the damages from the insurance. They all had an equal share. The location on the beach was so good that they were offered 18 million for the land. They all agreed and sold the property for 500k each plus the insurance. The numbers were far better than the pre destruction value of the units. You could have never gotten all to agree to sell under normal times, but being destroyed it was much easier.
Some of the condo have very large common areas as living areas. The Cotton Mill Condos has a 25,000 sq. ft. courtyard, large lobby, pool, exercise room and plenty of hall ways. It is different in each building. Keeping the condo areas clean and well maintained will increase the value of your units. Not keeping the common areas will have a negative effect on every-one’s value. You own the common areas so keeping them up to standards is in your best interest.
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Warehouse District Condos, The Federal Fibre Mills Condos and Lofts remains popular !
February 12th, 2008 categories: New Orleans Condo Reviews, Warehouse District
The Federal Fibre Mills Condos located at 1107 S. Peters remains one of the more popular condos in the New Orleans Warehouse District. The Federal Fibre Mills was one of the first downtown condos and has one nicest and most spacious courtyards and common areas of the entire New Orleans Warehouse District. The conversion from an old rope factory was redone for the New Orleans Worlds Fair in 1984. It took a while for people to accept downtown living as this one of the first. Many of the 140 units in the 5 story building have been redone and updated. Most of the units are loft style units with the bedrooms being the lofts. The historic features include large windows, exposed bricks, exposed natural wood beams and old pipes adds to the appeal.
Parking is half a block away and each unit comes with parking. The secure building is manned by security personnel on a daily basis. The courtyard has benches and tables for just being outside with a nice pool. A small gym is in a separate building near the pool and bar-b-que pits are in the rear of the courtyard. The lobby looks like a hotel lobby and is spacious and an atrium that is 5 stories high with exposed beams. On site management does a great job on the upkeep of the complex. The odd thing about the condo fees is that the a/c is in the condo fees as the entire complex is on a cooler system. The condo fees are higher due to this but your electricty bill will be much lower.
The location of the Federal Fibre Mills are easy access to the interstate via car and is a block away from the New Orleans Convention Center. Its an easy walk to theRiver Walk and the New Orleans French Quarter. The New Orleans Warehouse District has grown by leaps and bounds since the lobby was the German Beer Garden during the 1984 World Fair. There is also entire block that has been converted into a park across the street as you walk to the New Orleans Convention Center. You are in the 1100 block of St. Peters which means you are 11 blocks away form Canal Street which is the edge of the French Quarter. Its an easy walk and you will pass many hotels, restaurants and shops on your way. You are also close the the Magazine shopping area in Uptown New Orleans and a short walk to the St. Charles Ave. streetcar line that takes you past Tulane and Loyola abot 60 blocks away.
The Fibre Mills has been a favorite of medical students and residents along with a growing number of second homers who like the tranquil setting and ease of getting in and out of the area. The prices in the 2008 are going to be in the 180s to 270s for the one bedrooms and up on the two bedrooms.
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Trump Towers Condos, Donald Trump Jr. Visits New Orleans
February 12th, 2008 categories: New Condo Projects
The Trump Towers Sales office is opening in a couple of weeks at 601 Poydras in the Pan Am building in the New Orleans Warehouse District. A recent article in the Times Picayune recently said about the project.
“Donald Trump Jr. said the condo-hotel units should appeal to executives from the energy sector who visit New Orleans regularly and want to keep a pied-a-terre in the city. With the dollar weak and interest rates low, Trump also expected investors from Europe and Latin America to buy inside the building.
He said well-heeled locals, especially those with grown children, might also consider moving downtown. Condos and condo-hotel units will start at $400,000 for a studio and top out at several million dollars for a penthouse.
“There is a natural cycle we have seen in the market where baby boomers no longer want a home where they have to worry about leaky pipes and mowing the lawn,” Trump said. “They are migrating to condominiums in urban areas.”
Cliff Mowe, one of the tower’s developers, said Thursday that the building would include retail space on the ground floor, followed by 15 floors of parking and a sky lobby on the 17th floor. The condominium-hotel units will occupy the next 15 floors, followed by traditional condos on the uppermost stories. “
The $400 million building will have two rooftop pools, one for all occupants and one for condominium owners only. Mowe said there will be separate entrances and elevators for hotel guests to ensure the privacy and security of full-time residents. “
Once 50% of the units are sold the project will begin the next phase. Look for a lot of out of state investors to purchase these units for themselves. When you have a new project of this scale the entire area gets more notice. Will we see the New Trump Towers Condos added to the New Orleans Warehouse District skyline in the future?
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