New Downtown Development Avoiding Condos - Why? (Cincinnati: sales, apartments)

[enofile]

While OTR has condos being built up the wazoo, downtown's new development centers on office space, hotels, and rentals. I realize that OTR has flourished using private financing, but why when there is available money, are downtown developers looking primarily at apartment housing? The new office buildings and hotels make sense because their profit margins are larger, but the emphasis on rentals doesn't fit that equation. Can any of you urban aficionados answer my question? Thanks much.

[Joeytraveler]

I believe the downtown apt occupancy is somewhere in the 90% range so the demand is certainly there. Condo financing is a little more stringent than single family homes and from the little I know of it seems like a vastly different animal. The current thinking in people who geek out about these things is that home ownership will continue to decline as more people become voluntary renters and it becomes less stigmatized. ie more higher end

[CinciFan]

The last I heard the apartment occupancy rate downtown was at 96-98%. There are literally waiting lists at every building (believe me, I've been looking for a while). There is certainly demand for more apartments. Much more.

[natininja]

Just guessing, but my bet is banks think apartments are safer.

[kjbrill]

Originally Posted by natininja

Just guessing, but my bet is banks think apartments are safer.

As well they should. Just look at statistics on condo resales in the whole Greater Cincinnati Area and you get the idea. Related to time on the market, resale value as a ROI, they suck. I know of many condos near to me I would be happy and comfortable to live in. But then I look at the HOA fees (my biggest pet peeve) plus the property taxes on something where I have no actual land and virtually no control of the nini-strip of land around the condo, must argue about simple landscaping features, and I go NO WAY!

I admit to being much more knowledgable of condos in the suburban environment than downtown. So I don't know whether downtown condos have HOA fees. If they do, they are doubly worthless.

[TomJones123]

Originally Posted by kjbrill

As well they should. Just look at statistics on condo resales in the whole Greater Cincinnati Area and you get the idea. Related to time on the market, resale value as a ROI, they suck. I know of many condos near to me I would be happy and comfortable to live in. But then I look at the HOA fees (my biggest pet peeve) plus the property taxes on something where I have no actual land and virtually no control of the nini-strip of land around the condo, must argue about simple landscaping features, and I go NO WAY!

I admit to being much more knowledgable of condos in the suburban environment than downtown. So I don't know whether downtown condos have HOA fees. If they do, they are doubly worthless.

Obviously, you aren't in touch with condo sales in OTR. They can't build them fast enough.

[kjbrill]

Originally Posted by TomJones123

Obviously, you aren't in touch with condo sales in OTR. They can't build them fast enough.

You are right, I am not in touch with condo sales in OTR or anyplace else downtown for that matter. So I asked a question to which I did not get a response. Do downtown condos, OTR, etc. have associated HOA fees? I can see no reason why they should. I was just responding to another posting in this thread inquiring why new developments downtown seem to be avoiding condos. You say they simply cannot build them fast enough. That is understandable, but which is it, condos or apartments and in what ratio? I don't believe a simple inquiry deserves a flippant response. We are simply trying to understand the downtown housing market. If you don't want to be bothered responding, then just avoid doing so.

[TomJones123]

Originally Posted by kjbrill

You are right, I am not in touch with condo sales in OTR or anyplace else downtown for that matter. So I asked a question to which I did not get a response. Do downtown condos, OTR, etc. have associated HOA fees? I can see no reason why they should. I was just responding to another posting in this thread inquiring why new developments downtown seem to be avoiding condos. You say they simply cannot build them fast enough. That is understandable, but which is it, condos or apartments and in what ratio? I don't believe a simple inquiry deserves a flippant response. We are simply trying to understand the downtown housing market. If you don't want to be bothered responding, then just avoid doing so.

I don't know, but just doing a quick google on OTR condos showed me that the listings I looked at do have HOA fees. And that's pretty common and in no way makes the condos worthless. I was pretty clear that I was talking about condos in OTR, not apartments in the CBD. But, you know what? Demand is insatiable for both apts and condos. I really would recommend that you take a Saturday and at least head to The Banks, or Fountain Square. Just come see how much things have changed. It's not a complete work, and there is plenty of grit left in OTR, but if you at least come down at some point I think you will be pleasantly surprised.

[Joeytraveler]

Yes they have fees and they aren't insignificant. Proper upkeep can be very expensive. As with most things in life the devil is in the details and it depends what's included and what shared services are put into the HOA contract, ie snow removal, parking lot maintenance, roofs etc. as with anything read the fine print.

[Ohiogirl81]

Originally Posted by kjbrill

Do downtown condos, OTR, etc. have associated HOA fees? I can see no reason why they should.

To pay for upkeep in common areas, roof, etc. A lot of condo developments will pay water and sewer fees. The more amenities (I hate that word, LOL) a condo development has -- fitness room, pool, community room, etc. -- the more complicated your HOA is going to be.

The older I get, the more attractive a downtown condo sounds! I would hate being a tenant again. Landlords suck (any present company excepted, of course ... ).