Real estate/financial tycoons

[MojoMan]

A developer is planning this.

 

http://www.madisonretailgroup.com/property...ty/property:115

 

It's not total BS because the first building (an 18-story apartment with a Harris-Teeter) has completed.

 

http://www.wentworthhouseapartments.com/Ab...h/AboutLCOR.asp

 

In the DC Metro area, the Metro is the above-ground/subway for mass transit. There has been a trend to build "city centers" around some of the key stations (Pentagon City, etc.).

 

Is is safe to expect the real estate values (for luxury condos) to increase if across the street from this development?

[dmarc117]

A developer is planning this.

 

http://www.madisonretailgroup.com/property...ty/property:115

 

It's not total BS because the first building (an 18-story apartment with a Harris-Teeter) has completed.

 

http://www.wentworthhouseapartments.com/Ab...h/AboutLCOR.asp

 

In the DC Metro area, the Metro is the above-ground/subway for mass transit. There has been a trend to build "city centers" around some of the key stations (Pentagon City, etc.).

 

Is is safe to expect the real estate values (for luxury condos) to increase if across the street from this development?

 

 

what have prices in the other city centers done? more supply will mean more price competition which may hurt prices in low demand times like we are in. if you are buying to flip, be careful because you will be competing with the developer when it comes time to sell and he will undercut any offer you have. it is being seen here in chicago. glut of condos all over the place. if you are buying to hold, might be different.

[MojoMan]

what have prices in the other city centers done? more supply will mean more price competition which may hurt prices in low demand times like we are in. if you are buying to flip, be careful because you will be competing with the developer when it comes time to sell and he will undercut any offer you have. it is being seen here in chicago. glut of condos all over the place. if you are buying to hold, might be different.

 

Thanks dmarc. Chit. My dilemma is this. I bought a nice condo in 12/2006. With the housing bubble, I'm pretty sure it's lost 10-20% of it's value. To keep my woman happy, we're going to buy a house together.

 

I have a lot of equity in the condo so I'm not upside down but I will incur a substantial capital loss if I sell now.

 

Or, I could hold it and rent it out and hope it bumps back up.

 

When I first saw that they were going to do this huge development, I figured that would be good for my property value. However, your point is well taken...it could lead to a glut of housing.

 

Hmmm.

[dmarc117]

Thanks dmarc. Chit. My dilemma is this. I bought a nice condo in 12/2006. With the housing bubble, I'm pretty sure it's lost 10-20% of it's value. To keep my woman happy, we're going to buy a house together.

 

I have a lot of equity in the condo so I'm not upside down but I will incur a substantial capital loss if I sell now.

 

Or, I could hold it and rent it out and hope it bumps back up.

 

When I first saw that they were going to do this huge development, I figured that would be good for my property value. However, your point is well taken...it could lead to a glut of housing.

 

Hmmm.

 

not a guru at all either. just have invested in condos before and currently have friends invested in developments now. if you dont need the capital you could try to rent it and cover your monthly nut. but dealing with tenants can be a pain in the arse. who knows how long this housing slump will last too. some 'experts' are saying we are still just in the beginning and others are saying we have bottomed out.

[geeteebee]

Any idea what the prices of the new condos will be? If they are going to be higher end than yours, you could see an increase in value just by being near those. However, if they are comparable to yours, you could see a decrease in value for a period of time while the new ones are being absorbed. As dmarc said above, the glut of units may keep values down.