Post Number: 61
|Posted on Tuesday, February 26, 2008 - 1:29 am: || |
as much as i love to see optimistic developers take chances on our great city, is there any chance in hell that this development will happen?
http://www.detnews.com/apps/pb cs.dll/article?AID=/20080225/B IZ/802250319/1148
Post Number: 5383
|Posted on Tuesday, February 26, 2008 - 1:46 am: || |
Let's see... 600 condos going for a bit less than the 65 or so at the B-C. Those 65 were somewhat of a hard sell, no? Ditto, for the failed or delayed condo projects nearby. All told, how many condos in total were involved in the failed or stalled CBD projects? Far less than 600, right? What's the pent-up demand for CBD condos?
If an average household were, say three, that's only some 2000 people. Yet, they're not clamoring to move downtown in the other projects. So, why should GM's project fare any better?
My take is that somebody willing to pay $700,000 would buy a brand-new monster place in Plymouth Twp. or Northville, instead. For obvious reasons.
Post Number: 4010
|Posted on Tuesday, February 26, 2008 - 9:08 am: || |
Think about it - the people that would typically buy in that price range already own a home. They could be coming from out of town (few) and have sold their house in a better market and can buy a condo in Detroit. Or, more likely, they live in SE MI and cannot sell their house without a huge loss, if they can sell at all. No buying a condo.
My wife and I looked at many CBD condos, we cannot sell our house so we dropped out of the market. Many more people like me.
Post Number: 334
|Posted on Tuesday, February 26, 2008 - 10:44 am: || |
Even with the potential breaks on property tax, the city income tax is a major disincentive to living in the city.
Many of the potential purchasers of this project would have significant incomes. They do not want to fork over an additional 2.5% of their entire income to the city. Not when you can live outside of the city and not have to pay this tax.
Post Number: 101
|Posted on Tuesday, February 26, 2008 - 2:30 pm: || |
Income tax could be a factor, but it looks to me like a lot of these condo developers are basing their prices on what it will cost them to build the building they are envisioning, rather than on what the market will bear.
Forget about Plymouth Twp or Northville (I already have) but you can buy a good-sized townhouse or condo in Lafayette Park for $200K or less. Or check out this place:
http://www.visualtour.com/appl ets/flashviewer2/viewer.asp?t= 1139313&sk=27 which should be really close to RenCen (I can't figure out exactly where it is--maybe that is why no one has bought it) for $219K.
Maybe the new places will be nicer, but that much nicer? I doubt it.
Post Number: 5392
|Posted on Tuesday, February 26, 2008 - 2:42 pm: || |
My point is that $700,000 that would buy a condo by GM buys a McMansion with a monster footprint in PT, Canton, or NV.
The more pessimistic among the security analyst and industry watchers state that the current inventory of overpriced oversupply of built real estate isn't disappearing anytime soon. Some have said that the 2006 levels in construction and real estate may not occur until 2012 at the very earliest, with a buyers' market for all that time.
Californian politicians now want US taxpayers to bail out that state with bailouts, mainly directed toward those homeowners who shouldn't be in the first place. Or another S&L bailout like during the 1980s.
I thought we learned our lessons then. Apparently not.
Post Number: 663
|Posted on Tuesday, February 26, 2008 - 2:52 pm: || |
Mwilbert, the apartment advertisement that you linked to is for a large apartment in Indian Village Manor at 8120 East Jefferson, across the street from Indian Village. The building went condo several years ago. I can't imagine too many apartments being larger or nicer than those in IVM. As with any older building, there may be maintenance issues that you would not have with new construction.
Post Number: 103
|Posted on Tuesday, February 26, 2008 - 3:02 pm: || |
The flyer says 812 E Jefferson, which is why I was confused. Thanks for the correction--no wonder I couldn't find it! It looks good, but not exactly downtown, so not as much competition as I might have thought for the theoretical GM condos--not that Indian Village isn't a good alternative.
I could be mistaken, but I would assume that most of the people looking at a downtown condo wouldn't see a standalone house in the remote burbs as a desirable option. Maybe a nice loft in Royal Oak or something like that.