The best strategy for the montage is to have the VA Administration purchase the building and convert

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What is going on at the Montage? Their website hasn t been updated, there hasn t been a lick of marketing from the new owners, no one seems to know what the new pricing structure (if any) is going to be, and I m not sure that you could buy a unit in the building if you wanted to. You certainly couldn t finance it in this climate.
The first attempted resale of a unit at the Montage has faced a rocky road. Unit 2018 is a 1519 SF 2 bedroom, 2 bath unit with 2 car tandem parking. quality inn new port richey It is in the prime stack of the building. It was purchased quality inn new port richey on 29 May 2009 for $445,900 for cash. I don t know if this is one of the units Montage had under contract I ve heard that the majority of the 33 buyers have been new meat. The unit listed for $399,000 on 19 December, was reduced to $349,900 on 28 December, quality inn new port richey was reduced to $299,000 at some point according to some of the RE sites, then showed up as a featured property in the RGJ s HomeFinder supplement yesterday listed quality inn new port richey at $200,000. The sellers are said to be incredibly motivated according to their realtor. Job relocation forces sale.
I often disagree with smarten on his fixation on property tax issues, but not on this one. Annual taxes on this unit are $5223.18, abated from $5622.00. That is over $435 a month. quality inn new port richey Add that to the monthly HOA dues of about $650, and add some insurance and utilities, and the the monthly cost of this unit is topping $1200 without a mortgage. Rents out at $1500 or so? Is the Montage approaching the Grand Sierra s negative cash flow if free metric?
An architect, business owner, and compulsive public records hacker, Mike reads the tea leaves of the local real estate market from a unique perspective.. A former Chicagoan, quality inn new port richey Mike earned his MArch from Harvard University.
You know, for the people quality inn new port richey who bought quality inn new port richey in the middle of the Biggest Bubble in History, in 2004 or 2005, we can at least say they got caught quality inn new port richey up in the frenzy and bought into the developer/realtor spincrap about how properties in Reno never go downn in value. But somebody who buys in May of 2009? In that building? With all of the well known problems quality inn new port richey in that building?
When asked what he intends to do with Corus assets, Sternlicht stated that Starwood can afford to wait up to 4 years if necessary quality inn new port richey until rents and prices come back in the real estate market. He happily noted the consortium that now owns Corus assets has a 0% loan from the FDIC for a few billion, so the cost of holding the properties is minimal.
FWIW, I m not sure that waiting 4 years is the best strategy regarding Montage. quality inn new port richey It s not out of the question that Reno RE is cheaper then than it is now. Regardless, expect a nearly empty luxury quality inn new port richey condo bldg in downtown Reno for the foreseeable future .
I m with SkrapGuy- this guy is a chowderhead of the highest order. It also underscores the fact that many people drank the Kool-Aid in 2009, and took a bath to the tune of hundreds of thousands of dollars. This thing ain t over by a long shot. Unemployment is ratcheting up nicely, again. Green shoots? Bwahahahahahahahaaaa!!!
Funny how just a couple of days ago, while talking about Somersett as the trainwreck the bubble built, I said the only other thing in Reno that so epitomizes the bubble is the Montage. And now here we are, yet again, talking about the other bubble trainwreck. I find it appropriate to discuss Somersett and the Montage in the same breath. Because although they are drastically different in design, they are identical representatives of the foolishness, the arrogance, the absurdness, of the bubble nonsense. Both were built on a promise that could never have been kept that it didn t matter how much one overpaid, because next year the place would be worth 15% more than one paid for it today. Apparently forever.
Well, Smarten, you re asking the wrong person. I would never in my life buy a condo. quality inn new port richey EVER! They are apartments, to me, and apartments are something to be rented not purchased, especially in a town like Reno, NV. But, for the sake of argument, I ll offer my two cents. Given the absurd quality inn new port richey taxes and HOA dues which, together, total somewhere in the neighborhood of $1200 per month, I d say that a fair price for this particular Montage unit is right around $25k.
I hear you fully: at some point, its an opportunity to buy an asset on a future-appreciation play. But I ll answer your question to BB by saying the more and more I ve been looking, the more and more prices have been coming down. Originally, I thought I d have to hurry up and buy before rates go up. Then I was worried quality inn new port richey about a V shaped quality inn new port richey recovery, or certainly a U. But now, I just keep seeing prices going down, unemployment up, economy stalled, government acting cluelessly, lenders frozen, boomers downsizing, and inventory building. I m right back to where I started: happily and voluntarily renting, even with 3 kids, for the following reasons: a) 1/3rd cost of housing expense, b) no repair bills, c) ultimate flexibility in both being able to move at any time (30 day out clause) and in having a liquid cash position at my disposal in case I did want to opportunistically quality inn new port richey buy. All the while, I am able to afford to live in a better school district than I could afford to buy in.
For a Montage buyer, I would think they d have to heavily weigh the disadvantages of having high HOA s, difficult financing environment, asleep or certainly faceless seller with whom they d have to attempt to negotiate, loss of flexibility in not being able to readily re-sell if they need to (such as this guy s job situation), potential quality inn new port richey loss of equity, risks to unsavory elements moving in (long term vacancy never seems to be a good thing), inability to rent the unit if needed with any sort of sensible quality inn new port richey returns, and the continued harsh drumbeat of the market. Let s face it: today s buyer might well not break even or be able to effectively sell for 5, 7, 10 years, even with $130 psf prices. So, why jump in now while the waters are still merky at best?
But I agree, at some point and if willing to hold for a longer term horizon, the price becomes low enough to take a few risks . As for me, if I miss the exact bottom for a few months or so, no biggie. So, I ll wait to see things improve.
The best strategy for the montage is to have the VA Administration purchase the building and convert it to a VA retirement and VA Assisted quality inn new port richey Care facility. No HOA dues, no RE taxes and the government already owns the building. quality inn new port richey VA needs this type of quality property.
But it sounds to me like you re really a buyer at heart [as opposed to a renter]. Maybe in the past you haven t been a buyer because the cost to buy was so outrageous? Or maybe the disparity between the cost to own versus the cost to rent was so out of whack? Or maybe you could afford to buy, but you weren t comfortable owning what you could afford? So now the cost to buy isn t so outrageous. And now maybe you can actually afford to buy something you d be proud to own? Or maybe, just maybe, because of someone else s misfortune you re able to actually buy something well above your pay scale? So do you pull the trigger or continue to sit on the sidelines because you don t see prices quality inn new port richey appreciating [the "V" or "W" factor] in the short run?
Now I m going to complicate the inquiry. Because of someone else s misfortune, let s say a particular property comes along for sale that you can actually afford, and it is everything you re looking for in a home in fact it s more. It s something you could never before afford to buy but now you can. Do you continue to rent?
Add in historically low mortgage interest rates, the income tax benefits of home ownership, the first time homebuyers tax credit, the temporary drop in property taxes [due to depressed assessed valuations] which by law can t go up by more than 3%/year [even once assessed valuations rebound], and a wife who wants HER own kitchen [or maybe, your own media room or three car garage]? Do you continue to rent?
I m not saying that condo life is your cup of tea or even if it were, the Montage represents quality inn new port richey the pinnacle of the heap. But I bet there s something out there for the CLs of the world and if not, it s on its way. Until then, by all means continue to rent. But when opportunity strikes, don t become paralyzed because now it s here which means you actually need to do something.
2018 went into contract on 20 January, prior to the feature story (anyone know how much it costs to get featured?). If this is really going to be a cash to cash transaction, it should close pretty quickly.
DBNO, under Nevada s unique and arcane valuation system, the taxable valuation is a combination of the land value as assessed, and the depreciated value of the improvements. In the case of the Montage, the Assessor can shift around land value a bit, but has now way lie about the replacement value of high rise construction. So even if 2018 sells at $130 PSF, you couldn t built it today for $500 PSF and the taxable value will reflect this.
Raise your hands if you think that transaction value might not be a good point to initially establish property taxes, then an annual max on increases based on some index. Sort of like a more realistic quality inn new port richey Prop 13?
Green, Sharron Angle has made three attempts to change the Nev Constitution to limit prop tax to 1% of accessed value and a cap of 2% per year raise. It was also supposed to use the purchase price as first year base. Somewhat similar to CA prop 13.
To bad for Leal, but for such Napoleonesque characters an I told you so will never prompt a chastened admission of stupidity and hubris. T