Ocean Front Condo’s for less than 250K - Really?

Is your goal is to wake up every morning to the aroma of wind swept salt air and panoramic ocean views? Maybe in retirement? A second home perhaps? Why not now?

Our good friends at the Boston Globe chose to highlight an auction of condominiums going on March 9th by the Atlantica, a beautifully styled piece of New England architecture, located directly across from the Atlantic Ocean. These one & two bedroom units will required bids starting from $215,000 to $315,000 depending on the size and location in the building.

Seems like a great buy. Currently according to the Atlantica sales office a 641 sq. ft. 1 bed 1 bath would run you $300,000 not bad if you can purchase the unit at the opening bid of $215,000. The same holds true for a 1289 sq. ft. 2 bed 2 bath that is priced at $449,900. Thats over $134,900 in savings if your the only bidder.

I say only bidder because it is possible you may be. The Atlantica is located in Revere, right along Revere Beach Parkway. I am not looking to bash Revere tonight. Actually I think the buyers of these units will be pioneers. Revere gets beat up pretty badly in Real Estate cycles. Look no further than to your neighbors at the multi-colored St. Georges Condominium Complex. This south beach inspired building fell to the same fate in the 1980’s. Dress Shoes without socks anyone?

To get back on point, the buyers at this auction will be purchasing at the bottom of the latest real estate cycle. Not a bad place to pick up real estate considering that we’re not making anymore ocean’s. Add in a possible casino (Wonderland Park down the Street is competing for a casino license) and suddenly Revere may become a destination town again. See if those condo’s are still selling for less than 300k then.

Again this will require a pioneering mind. The casino may never come. But then again the Ocean isn’t about to leave.

Housing OK Motgages in Free Fall

The Warren Group has released its year end data for 2007 this week. What strikes me most is not the decline in residential sales or prices (down 5% from ‘06). Instead it’s the huge (and I mean huge) pull back in mortgage originations. Down 60% (60%!!!!) from the highs of 2003 and down 22% year over year.

Here are some of the numbers from the Warren Group:

Home purchase and refinance loans hit their lowest level since 2000 last year, statistics compiled by Banker & Tradesman publisher The Warren Group show. The number of mortgages for one-, two- and three-family homes and condominiums originated in the Bay State dropped from a high of more than 793,000 in 2003 to 325,925 in 2007, representing a decline of nearly 60 percent in loan activity over that five-year span. The number of residential loans also dropped 22 percent compared to the 416,342 mortgages originated in the Bay State in 2006.

With these kinds of numbers brokers are running for the doors at alarming speeds.

Mark McDonough left struggling National City Corp. six months ago to become vice president and sales manager in the mortgage department of Salem Five Bank. About one in five of his former mortgage industry colleagues has had to switch careers in recent months, he said.

“They’re opening bars, doing other types of sales, waitressing or working as nail technicians,” said McDonough.

Eastern Bank Senior Vice President of Mortgage Banking Stephen MacQuarrie said he personally knows “dozens” of people who have lost mortgage jobs as the foreclosure crisis and attendant credit crunch deepens.

Eastern itself had to lay off a few employees due to shrinking loan volume, MacQuarrie said, although the bank also has carefully and selectively hired a few experienced loan originators in the past four months.

On an upbeat note NextGen Realty is hiring!

Sales Data Made Easy

Graph made possible by the Warren Group

Warren sales graphic

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Today is a Great Day to be a member of NextGen Realty, Boardwalk Properties, and Jacob Realty. Our Companies just crossed the 10,000 Landlords mark in our data base with the official count at 10,008 and growing!

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Will no more than 4 students living together solve anything?

Boston’s City Council has quietly endorsed a proposal, spearheaded by Councilman Michael Ross, to cap the amount of students that can rent an apartment in our city.

If passed, what has been marketed as a bill to curb “Animal House Antics” by the Boston Herald, no more than 4 students will be allowed to occupy an apartment. Naturally this has set off a firestorm through neighborhoods such as Allston/Brighton, Beacon Hill, The Fenway, & Mission Hill pitting long time resident vs. landlords who rent to students.

What has caused a lot of consternation is that this proposal now goes before Boston’s Zoning Commission. Which, if approved would usurp the rights of private property owners and place added restrictions and regulations on income properties that they depend on. This is a public taking of private property rights by way of zoning who can live and who can not live in an apartment.

Looking at this objectively I am trying to find the “why” as to what may have caused this latest round of Government vs. Property Owners battle. It seems to me that Councilman Ross’ issue is noise complaints. Scott Van Hooris, of the Herald, mention on more than one occasion that the families in these neighborhoods want the noise levels produced by students to be curbed. Can we really believe that only students make noise?

Councilman Ross has received a few complaints from a very small yet vocal group of people that vote. This is the only reason why he is bringing this issue to the forefront. Councilman Ross also knows that it is very easy to blame students for all matters as it is an easy win because they don’t vote in the districts that he represents. However, is this knee jerk solution going to solve anything?

As a Real Estate Agent who got his start in this city as a rental agent I can confidently say I have seen 100’s of apartments in all neighborhoods. I have seen apartments that students, young professionals, professionals as well as families live in. Let me tell you something folks, students are getting a bum wrap! There are plenty of apartments that I have walked through that are ill kept by all of the above. And Parties? Let me tell you another thing, in talking with hundreds of landlords on the phone, ( this is what I do all day – talk to landlords) I have determined through my non-scientific study that: Landlords actually complain more about professionals and young professionals throwing parties than students.

So lets get back to the matter at hand, will fewer students in an apartment actually solve anything? I have had the liberty of calling over 200 landlords in the past two weeks, and nearly all of them said, “There will be more parties and noise if you give less students more room in the same apartment”. There will be more noise because you created a party room that used to be a bedroom. Another landlord put it best, by saying, “if we put only 4 students in a 5 bedroom (what the %^$#) do you think is going to happen to that 5th bedroom?” He went further on to say, “their going to build a bar in whatever room becomes vacant.”

This makes perfect sense to me. Even to this day, at a party, people usually gravitate to an empty room or a room with the most space rather than a crowed living room. I think we can all agree to that. So in essences what Con. Ross is trying to prevent is actually going to come back and hurt him politically.

Here’s a better solution if the real issue is noise complaints supposedly caused by students.

I would suggest increasing the fine for noise violations. Maybe we should just double the fines? Right now if the police come to your house for a noise complaint it will result in a $500 fine and an arrest. How many students or professionals for that matter will throw a party if the fine is $1000? I know I sure wouldn’t and I believe most of Boston would never throw a party if they knew that type of fine could be levied against them. So aren’t we going about this in the wrong manner? Lets just increase fines and there will be no parties ever because only the rich will be able to afford the fine. I certainly know I was poor in college – a $1000 would send me home packing.

One more thing that I have noticed about college students today that has dramatically change since I was in school is that they actually speak far less than we did 5 years ago. When I walk into an apartment and I am showing the property all I ever hear is students typing away with their head phones on. They prefer email, texting, instant messaging, chatting in online forums and social networks. To be quit honest this new socially wired student has become completely introverted and less social. What I see are students far less willing to throw parties at their house when they can throw one on facebook, my space, & second life. I think we are building a world of kids that will be socially stunted and never be able to communicate.

I would like to point out that students are not a protected class under state or federal laws and although they are vital to the economy of this city they are often the brunt of a couple of politicians pushing their own agenda. We should start embracing America’s future rather than targeting them for easy political gain. We should not make Boston such a difficult place for our best and brightest. If we continue to make them feel unwelcome here they will leave to other states. Where will that leave our city? There have been numerous articles written lately that say we are losing college graduates from our state in unprecedented record numbers. By passing this ordinance, which clearly attacks students, I think we are setting ourselves up, long term, to make intelligent people not want to live here. Do we want to loose our next Bill Gates, Marc Zuckerburg, or Shawn Fanning Do we want to loose that? Shouldn’t we be embracing our young bright minds that helped build our great city?