New Orleans Real Estate by Eric

God knows we need not another storm like Katrina. The town was empty today as most have left town. See all you guys later. Hope I am dry when I return. Going to Orange Beach, its ironic but that was the few places that had rooms. People cancelled because of the storm. Couple of photos in passing. LSU won today.  One of my twin sons has two sets  of twins aged 3 and one month. He evacuated to Alexander this mornng. My other son is off to Houston. Taking my 87 year old father in with us. You cannot take much.

You can  see that  this is stressful for Louisiana. Best of Luck to Lisa, Frank and John my New Orleans Blogging buddies. Talk about a real estate vacation!!!! Got to finish packing and get on the road.

Remember the media never tells it like it really is. There is always another side. They just buried the last 85 people this week that were unclaimed bodies from Katrina.

French Quarter Residential Streets

French Quarter Hidden Gems 

New Orleans Warehouse District Condos- The corporate condo rental business is alive! Gallery Row Luxury Corp Lease

    The condo rental business is rather tight in the New Orleans Warehouse District.  One of the most interesting aspects of this segment is the corporate rental.  This is where the unit is fully furnished down to the forks and spoons.  Everything that someone would need for a week or  if they are staying 3 months to a year where they can just move in and enjoy.  There are many people that just do not want to stay in a hotel for that period.  The Warehouse District happens to be one of the most desired locations for this type of condo. 

     Anne Pierson has a speciality in this, you can see her site and work she has done with the New Orleans Corporate rental business.  Anne's Site.  She can rent your condo out for you  for a couple of months if you are not going to be there.  She can help upgrade your unit so you can get top dollar if you are not here.  Any old unit will not do. Let Anne put her magic to work for you.  This is a link to one of her units Video Link of Anne's Condo.

     She took this small condo unit at the Cotton Mill and now it looks better than a $300 room at the Ritz.  And you can feel at home as well.

     You may want to think about renting your unit when you are not using it.  You may want the rent to help with the condo fees and expenses.  These are all ideas that Anne can help you with.  You have to follow the condo rules and do what Anne says as she is the expert.  

Real Estate slows down when a storm is ready to enter the Gulf Of Mexico. In New Orleans life is divided into pre-Katrina real estate and post Katrina real estate.  Just having the storm brewing makes you get prepared.  You have to ask yourself, could this happen again?  Its like you do not want to think about it but you have to watch and listen for the rest of the week. People become less interested in buying.  Agents are not interested either. Lets hope it blows elsewhere. Gustof or something like that, go away.

Having just listed this nice spacious 2 bedroom-2 bath top floor unit that has a lot of recent updates.  It  is time to review this condo association and see what is for sale in the building.  You can view the details below to see the rest of the listing information. See details at www.neworleanscondos.net

    This 6th floor unit sold for an extra 10k when sold by the developer in 2005.  This unit was bought in as is condition when the seller bought the unit in August of 2008.  Before putting the unit up for sale the carpets and wall paper were deleted and replaced.  The new wood floors, new paint , granite counter tops, tile floors, crown molding are the correct moves needed to give #639 that updated look.

      The 1750 St. Charles Ave Condos were upscale apartments that catered to elderly people before being converted into condos in 2005.  The demographic make up of the complex is changing as many people enjoy the security of this well maintained condo.  The location on St. Charles Ave. across the street from Houston's and the streetcar line is hard to beat.  You are blocks from the Mississippi River Bridge and the "Best Bank" of New Orleans as some would say.  It is also the entrance to I-10 and points West.

     The entire first floor is the lobby and the garage parking.  Each unit gets one spot and there are visitors parking past the guards gate.  They are on duty 24 hours per day.  The on site management is on site everyday to tackle any problems and issues that arrive for the 250 plus units.

Selling your New Orleans condo with a tenant can be a little harder than sellers may think.  The seller is not as motivated but  likes the income while the tenant is living there.  Most of the time the tenants are nice. Most will co-operate most of the time.  It is not a priority for them to sell the condo, they are paying rent for a place to stay.  The showing do interupt there lifestyles.

     As a seller you will miss appointments as the tenant cannot always be ready to show the unit.  In a slow market you have less people looking and each showing is more important.  Many agents will call you with a couple of hours notice and this just cannot be done with a tenant.  As an agent you figure these sellers are not as serious since income is coming in.  You however do not know.  The tenants will have good intentions but life is always throwing us curves and plans change.

    It just makes everything a little harder to get the tenant, the listing agent and the showing agent lined up for a showing.  When I am on the buying side I often do not schedule a tenant occupied unit unless I feel that is one of the better buys available.  If the tenant lets us put a lock-box on the door and will just take a call that someone is showing up a X time, then we have no problem.  

   Many times the tenant is not prepared to have the unit shown but it gets shown anyway.  If the tenant has a dog or cat that can also add to the fun and smells.  If the pet is mean then it just multiples the effect of a negative showings.  It may not leave a good impression when it does get shown.  The opposite of staging a condo is having a messy tenant.  The tenants may have valid reasons not to show or be messy, but the prospective buyer cares little about this.   

    There are going to be many times the tenants have been great but all to often the latter is true.  I have had both this year and its hard to over come the unmotivated tenant.  It cost the seller in the end in terms of market time and price.

    New Orleans rarely gets cold but can get hot. You do not need a large sapce to grow things but small areas.  I guess that is why courtyards were developed to contain the growth and manage nature. Once we hit Feburary it time to think Spring. The leaves fall sometime in December and many time the new leaves are soming as the old leaves are falling. We do have seasons like hot, hotter and cool.  However humid cool can easily become cold. 

   Weather in South Louisiana is great for growing things.  Plants, insects and fish are all included.  However I fool with the plant part.  Most of the time you never have to water here with 60 plus inches of rain per year.  You rarely have to worry about freezing during the day.  Snow comes every 20 years or so, the most was in 1964 so its been a while. 

     This blog has little to do with New Orleans condos but you can grow some great plants in your condo with a little care, light and light food.  These are plants in my yard in no orgainzed way.  I can always find new plants when I show homes and can trade them with other backyard growers. You can always tie this in with photos to tie the hobbies togeather. 

    Read beneath the line so you too can enjoy some of my plants.   When business slows there is always something to do. 

     The New Orleans French Quarter is like a little city within a larger city.  The historic nature of the French Quarter has a lot to do with the neighborhood.  Many of the current residents live in condos which is relatively new idea since the 1950'S.

     The Quarter is a small, small section of New Orleans but its the oldest part being the center of the Spanish and French Rule in their colonies before the founding of America. It still remains a treasure for all of us locals and tourist to enjoy. It is also a great place to take photos with all the colors and historic buildings.  It is much more than Bourbon Street as many people still live in the Quarter among the local shops.  There are few malls in New Orleans but Royal Street may have been a mall before chain stores were developed.  Its a lot of original shops, eats, drinks and entertainment that other places may not have. Enjoy the photos and check back for weekly additions of photos to my New Orleans French Quarter Page. I am sure I can get 5 quality shots per week.  The photos add up and soon after 20 weeks I will have a hundred. That is easy with the New Orleans French Quarter.

Jackson Square

French Quarter Residential Streets

New Orleans Real Estate in August-Listing High is not smart!

     The hot and humid summer in New Orleans is still here as we get ready to move into September.  School is starting and the focus has been on getting the kids ready to return to school.   Many of the new arrivals have settled in and are getting used to the heat.  In terms of real estate there are less people looking for condo or home this time of year.  However there will be some good buys.

     It happens every year !  You see condos that were listed too high in the Spring of 2008 that are still on the market.  The sellers have missed the crowds and most likely buyers. The higher sales price scared the buyers away.  The unit has gotten  stale and people have stopped looking thinking something is wrong with the unit.  The seller wanted to try to get a high price without the numbers backing them up.  Now the sellers are much more realistic in their numbers but the buyers are not as abundant. 

     This happens over and over again.  Every year we see this in homes and condos. Agents see the unit in the beginning and just forget about it and tell other agents how pricey the units are.  I know this and often fall into the stale condo trap.  I showed one this week that was listed at 329k earlier in the year.  Now it is 249k, a big, big drop.  The difference does not have to be that great.  The unit had a tentant in the condo and did not show nearly as well as it does now empty.   The tentant issue can also be expensive to the seller as you need to have the unit in tip top condition in this market.

     Pricing correctly when listing your condo is the best and smartest best way to go.  Take the money and run to the bank when you have a chance.  An empty unit has few good things that will happen to it.  View the competition when you list.  Look at the numbers.  Get an agent that knows the right answers that does not mind being honest.

     The buyers however should also know that some of the best buys may be the result of the seller not paying attention to the numbers.   The buyers end up getting a better idea as the sellers are just ready to sell.  Buyers need to keep this in mind when looking as this happens over and over again.   August and September can be a treasure hunt with the buyers finding the treasures.

New Orleans Condos buyers can get a Federal tax credit of $7500 and Be able to Use State or Parish Bond Money also!

      The possible combination of using the Federal Tax Credit and the Parish or Louisiana State Bond money can really be a plus to your condo buy.  Lets say you buy a condo for 200k and put 10% down, your loan balance is $180,000.  The Bond Issue can give you up to 3% of your loan which is $7200 credit on your sale and will more than cover closing cost with the balance reducing your loan.  This is a great way for first time buyers to have some cash left.   That's $7200. 

    When tax season rolls around you get an additional credit of $7500 which reduces your taxes by that amount. You will get a refund for the balance if you do not owe that much. The rules and repayment schedule are below.  This is in effect a no interest loan.  The value of $7500 today will be much greater than in the future. That's $7500

    You can see that both of these are close to $15,000 and that is real money for you to save or put into the property.  If you tie this in with your interest deduction on your income tax which will be about $12,000 you reap additional saving.  If your tax bracket is 25% then you have saved another $4,000.  This is every year that you pay interest and taxes.  You never pay this back.  Thats thousands every year!

     Many also forget that with each payment you are reducing your loan amount or building equity of about $200 per month on this size loan.  This is $2400 per year or about $10,000 over a four year period.  This is your equity and it to will be yours to keep.  See the light about purchasing.

      The appreciation you get when you sell your unit is also yours if you have lived in the condo for at least two years.  You may not be able to take advantage of all these factors but many people will.  Its like finding gold in your pocket.

     "Buying smart in today's market got a little easier recently following the signing of the Housing and Economic Recovery Act of 2008 by President Bush. There are significant benefits aimed at helping buyers, such as a repayable first-time home-buyer tax credit. First-time buyers are important to the health of the housing economy because their home purchases help to stimulate sales up the price points. Through the home-buyer tax credit, buyers who are purchasing for the first time or who haven't owned a property in the last three years can now qualify for a tax credit equal to 10% of their home purchase price, up to $7,500."

     "Further qualification requires that the home purchase be made between April 9, 2008 and July 1, 2009. The credit phases out if the buyer's income exceeds $75,000 for an individual or $150,000 for a couple filing jointly and it must be paid back over a 15 year period in equal installments. The credit can be claimed on the buyer's 2008 tax return even if the purchase is made in 2009 (it's important to note that this is a tax credit and not a tax deduction)."