Ann Arbor Condos added to FHA Approval List
Recently 4 more Ann Arbor Condominium Developments have been added to the approved FHA list. .
The four Ann Arbo Condo developments are as follows:
- Ashley Terrace Condominiums – approved 11/23/2009
- Cloverly Village Condominiums – approved 10/29/2009
- Gallery Park Condominiums – approved 12/21/2009
- Pittsfield Village Condominiums – approved 6/8/2009
With 100% financing being a thing of the past, this is excellent news as FHA is pretty much the only avenue for buyers with low down payments. A large number of Ann Arbor Condo buyers are either first time home buyers or medical or graduate students and coming up with a down payment is difficult. As more financing options become available for these buyers, it increases the buyer pool for condominiums.
The complete list of approved Ann Arbor Condo’s is as follows:
- Pattengill Condos
- Walden Hills I Condos, Walden II Condos
- Weatherstone Condos
- Parkside Condos
- Landmark Pines Condos
- Georgetown Commons Condos
- Earhart Village Condos
- Chapel Hill Condos
- Brentwood Square Condos
For condominiums not on the list, you will have to go through spot approval.
For any further information regarding FHA financing for Ann Arbor Condominiums, call The Ann Arbor Condo Specialists – The Bouma Group at 734-771-3060 or email us at email@example.com. For more information about Condo’s for sale, or sold prices in Ann Arbor visit www.condohotline.com/annarbor
Posted Wednesday, January 20, 2010 by Martin Bouma
Ottawa Condo Market Statistics
Now that 2010 has arrived, let's take a look at how the 2009 Ottawa condo market fared.
A total of 2,669 condos were sold in 2009 in the Ottawa area. The average sold price was $228,242 and the average condo in Ottawa sold in 32 days.
Compare this with only 2,517 sales in 2008 at an average price of just $215,128.
The Ottawa real estate market is definitely on an upturn! If you are considering buying an Ottawa condo, now is the time before the market gets really busy this spring. We are expecting to have an extremely busy first half of the year, as consumers find their new homes prior to the implementation of the HST on July 1, 2010.
If you want to get a jump start on finding a condo or home for you and your family, give us a call at 613-288-2455 and we will help you in any way we can!
Posted Monday, January 11, 2010 by Martin Bouma
Tags: ottawa condos,ottawa condo market conditions
Where is the Ann Arbor Condo Market going in 2010
As we approach 2010, the big question is, "Where is the Ann Arbor Condo market headed". After several years of dramatic price decreases, and decreased unit sales, we are heading into 2010 with some of the lowest inventory since July, 2007.
As of Dec 20, 2009 there are 347 condos for sale in Ann Arbor, which is down from 563 last December and 673 in December of 2007. This is a 55% drop in inventory over the past two years. This is a very good sign for the supply side of the equation. However, there has been a 25% reduction in sales in the same time period. The months supply of inventory is slowing decreasing, to where currently there is a 9.2 months supply of condos in Ann Arbor, which is down significantly from 18 months supply in 2007. Whenever there is more than an 8 months supply of inventory, we are in a buyer's market. Anything below 5 months is considered a seller's market. With 9.2 months supply we are approaching a balanced market. Should this trend continue, prices will begin to stabilize and possibly increase as competition increases.
Prices have decreased 25% since 2007, creating some of the lowest prices in years. As inventory decreases we should see a firming in price. The only exception to this will be foreclosures, which have really affected prices in certain complexes. However, with lower prices, low interest rates, the tax credit, and decreased inventory, the demand side should be strong in 2010.
First time home buyers will qualify for a $8,000 tax credit so long as they purchase by April 30, 2010. This will definately give the market a shot in the arm for the first 4 months of 2010.
Short of a major economic shift, all the trends are pointing to 2010 being an excellent year to purchase a condo in Ann Arbor. There is seldom a time where every factor that controls price is lined up so perfectly. Should rates go up only 1%, you lose 10% of your buyer power. Should inventory continue to decrease, there will be upward pressure on price, and when the tax credit disappears, you lose the $8,000 credit. So buy your next condo before any of the current market conditions change.
For more information, call the Ann Arbor Condo Experts at 734-761-3060
Posted Monday, January 11, 2010 by Martin Bouma
Happy New Year!
Happy New Year from the Renaud Otten Team!
We are looking forward to an exciting year in the Ottawa real estate market. The "economic downturn" is behind us and the Ottawa spring market is shaping up to be very busy. There are a number of new condominiums advancing their construction this winter and spring - notably 101 Richmond Road. Check it out here for a list of available units
Located in trendy Westboro and built by Ashcroft, it promises to be one of Ottawa's most sought-after condos!
All the best in 2010 - make this year your best yet!
The Renaud Otten Team
Posted Monday, January 04, 2010 by Martin Bouma
Tags: ottawa condos, new condo construction,101 richmond
How much rent should you charge on a rental condo?
Do you have rental properties? Are you considering purchasing a condo as an investment property?
If you are considering buying a condo as a real estate investment, one of your many considerations should be the amount of rent you will charge each month. A successful investment property will charge enough rent to cover the following:
- Mortgage payment
- Insurance payment
- Any included utilities
- Common expense or association fee payment
- An amount for maintenance
- An amount for vacancy
The bottom line is that you, the investor, do not use any of your own money each month to cover the expenses of your investment. In fact, once the rental payment has been received by you and all of the expenses have been paid, there should be some money left at the end of the day.
The mortgage, insurance, and common expense payments are fixed amounts and easy to calculate. If any utilities are included, the best way to estimate this cost would be to calculate the total utility payments for the previous year and divide by 12. This amount should be covered each month by the monthly rent.
The maintenance and vacancy amounts are a bit more difficult to calculate. If you want to allot a fixed amount per month for incidental repairs and maintenance, add that amount to the monthly rent. With respect to the vacancy amount referred to above, this refers to the number of months your unit may be vacant each year. If a new tenant will move in each year, you may experience a vacancy rate of 1 month each year, if the tenancies do not run together. If you think this will be the case, divide the rental amount by 12 and add this amount to the rent.
Here is an example of the minimum amount of rent to be charged for a condo that was purchased for $250,000.00 in order to cover all potential expenses:
Mortgage payment: $1,163.21 Based on $200,000 mortgage @ 5% interest
Insurance payment: $0.00 Tenant has own contents insurance
Utilities: $0.00 All utilities are paid by tenant
Common expense payment: $220.00
Maintenance: $100.00 Based on $1,200 per year
Vacancy amount: $123.60 Based on 1 month per year vacancy
Total minimum monthly rental payment: $1,606.81
Charging a minimum rent of $1,606.81 will easily cover all of your monthly expenses and your investment property should carry itself. Once the mortgage has been paid in full, this monthly amount will become part of your profit on the investment property. Once you have a few investment properties without mortgages, it is easy to see how you would have a very attractive monthly income from your condo investments.
Posted Friday, January 01, 2010 by Condo Hotline
Tags: condo rental,rental property,investment property
Should you be on your condo's Board of Directors?
If you own a condo or are considering buying a condo, one option available to you is to become involved in the business of condo management. Every condominium must have a Board of Directors to run the not-for-profit condominium corporation.
The next time your condominium corporation advertises a vacancy, you should ask yourself, "Should I get involved and join the Board of Directors for my condo?"
The Board has many duties, including but not limited to:
- Developing, maintaining and enforcing the policies of the corporation through bylaws, rules and regulations
- Managing the finances of the corporation
- Maintaining the property's exterior and interior
- Preserving the investment of the condo's various owners
Each month, each condo owner pays their condo or association fees. These are used to maintain the property, including security, cleaning, elevator maintenance, landscaping, snow removal, underground parking, pool maintenance, and more. This money also has to cover items such as insurance for the exterior of the building and the common elements or areas, utility charges for the common elements or areas.
The Board must arrange for reserve fund studies to be done every few years. These studies identify any areas of the building that will require maintenance on a larger scale, such as parging foundation or replacing the roof. At least 10% of the association fees are kept for these expenses.
Occassionally, these large ticket items require more money than is kept in the 10% reserve fund account. In these instances, a special levy is declared by the Board.
As you can see, joining the Board of Directors is a big responsibility. There are pros and cons. You get to have a hand in the decisions made in the building wher eyou are an owner, however, the decisions you make may not always be popular with everyone. Ultimately, you need to decide if you want to have a say in what happens in your condo, or do you prefer to leave that to someone else?
Posted Friday, January 01, 2010 by Condo Hotline
Tags: condo board
, board of directors
, condo decisions