Is there anyone from Atlanta, GA?

[xmanz3]

What do you think about the real estate market in the Atlanta area?  I live in the Brookhaven area and we have noticed that the houses are slowly increasing in price by being so close to Buckhead and in a prime location. 

Are there any good areas to invest in real estate?

 

[califdreamer]

I've been looking at the Atlanta area for possible apartment building investments.  From the little bit of research I've done, 2006 should be a good year for job growth in Atl after a disappointing 2005.  Apartment completions should be down in 2006 (good for apt investors) but condo construction is up, especially in Buckhead and Midtown.  If developers get overly exuberant, the area could experience a condo glut like we're starting to see here in San Diego (also in Las Vegas and Miami). 

It would seem with job growth and a good close-in location, house prices could see some appreciation, especially since Atlanta did not see the crazy price increases that some coastal areas experienced since 2000 or so.  OTOH I'd keep my eye on condo development as a possible spoiler. And, of course, rising interest rates.

 

[xmanz3]

The only problem that I see with purchasing a condo is the HOA fees from hell. By the time that you add your property taxes, HOA Dues, insurance, and repairs you can barely make some profit and sometimes you wind up losing money. If you rent the place adding all those additional fees and expenses, the rental price goes so high that people rather buy a property.

What do you think?

 

[califdreamer]

Yes, I agree, I'd stay away from condos for investing.  I lost a good bit of money in my only condo investments.  Big mistake.  I did the opposite of what I usually do... I had big neg cash flow and hoped for a quick spike.  Instead, I sold them for a little less than I bought them for, but had to pay commissions and closing costs and accumulated a lot of cash outflow every month.  Ouch.

If you're looking to buy a detatched home for an investment, excessive condo development could be a drag on appreciation of condos and detatched homes.  I didn't make that very clear in my earlier post,  but that was the idea. 

Others may disagree, but if I were to invest there, I would go for a multi-unit building (if you need a partner to make this type of investment you could consider doing so).  Let's say interest rates go up.  That makes buying a house less affordable and a portion of the house-hunting group will have to rent.  That's good for your muliti-unit investment even though it could hurt single family house prices. 

Just my .02. 

 

[dusk_to_dawn]

I lived in Atlanta for 20+ years. One of my worst investment decisions ever was buying a new house in Forsyth County versus an all brick house, hardwoods throughout with a full daylight basement in Chastain Park. They both cost about 200K in 1993. I'm sure you can guess which one is now worth about 270K and which one is worth about 450K.

Anyway, are there any places left to invest? Well, you are in the right place, Brookhaven/Buckhead. Atlanta's traffic woes make intown housing extremely desireable. If you want to venture beyond buckhead, a friend of mine built a house off of Flat Shoals near Moreland Ave. off I-20. There is a little area there around Glennwood and Flat Shoals that is like a smaller Highlands area. I thought he was crazy when he built a new house down there, but he did well. It's not as cheap as it once was, but it is close to downtown and it isn't nearly as expensive as buckhead. Go check it out.

 

[bearkeley]

We just closed on 3 quads in Marietta. Obviously, it's too soon to know for sure if our decision was a good one, but here are a few reasons why we decided to invest in the area - would be worth considering...

1) POSITIVE CASH FLOW - It was one of the few areas where the #s still work. With a positive cash flow, we won't really care too much about how the housing market does...just as long as the rents are up and we have the place rented, then we're set. (Buckhead doesn't flow; midtown areas that are 'up and coming' were to 'risky' for us given the questionnable housing market) -- if you find a property that flows, however, you're set! We found ours in Marietta.

2) Atlanta market isn't inflated...studies have shown that because of the # of new homes, the prices remained constant (approx 4% increase, while other markets exploded)....so...if prices drop, it won't be as dramatic as other markets.

3) It's in the south...interesting to see that a lot of folks seem to be moving south...even those who are not yet retirees....

4) Atlanta is a booming convention / business hub...a lot of businesses considering Atlanta for conventions / relocation (due to low cost compared to other Metro areas)

The properties we bought are quads....they are in a residential neighborhood with a lot of SFHs and new (higher end) development....we were able to get a reputable property manager who charges lower than most...there's no association dues and our mortgage rates are pretty good.

Read-up on the different markets...now might not be the best time to buy given the rates and the sales market. We did our homework and got lucky and locked in on interest rates before they went up...we had a great lender, great title company, great realtor....we also used this board a lot and got a lot of input / advice from folks (check out old posts....Arif has been awesome)

Good luck!

 

[NinjaPigeon]

I'm from Atlanta. I'd agree that Atlanta seems for the most part to have avoided developing a bubble like other areas in the country. However, we have a LOT of new condo development here, so I wouldn't go the condo route as an investment unless you plan on living there yourself. The holding costs seem very prohibitive to investors.

I've never done it, but you could also check with the city planning office to see what's in the works for the next year or so. Might give you an idea where the new hot spots are gonna be. Obviously places like Atlantic Station are too expensive to get into now. East Lake also is pretty much a done thing.

Best of Luck

 

[xmanz3]

Ninja,

are you investing in real estate in the Atlanta area?

 

[NinjaPigeon]

Not right now, no. I have attempted to before And I'll probably take a stab at it late this year or early next.

 

[bearkeley]

I'd sit tight for awhile and see how the high foreclosure market reduces prices of SFHs. See this article...note how Atlanta ranks #1 in the foreclosure market. This is good for rentals but you might be able to get a good deal if you time it right...

http://www.forbes.com/home/free_forbes/2006/0605/142_3.html