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Charlotte's Condo Market

amoyyao

By amoyyao
in Charlotte

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Charlotte_native City

Charlotte_native

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You guys are talking about two different things. One is selling the "contract" that you have to purchase a property which I would think would be difficult or impossible in NC. I don't think that is happening in downtown so I am not sure why it was brought up.

The other is selling the property "after" you have closed on it. I don't see where any restrictions on that would hold up that well in NC and owners are free to sell their property as they see fit. People who buy a condo these days with the idea they are going to quickly flip it to make some cash are entering a very risky crap shoot.

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monsoon Gigalopolis

monsoon

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Posted
Actually Lukedog and I were talking about the same thing. He knows folks that have gotten properties under contract and intend to sell those contracts, apparantly. You can do that in NC -- it is an "assignment of contract". You can charge an assignment fee to do so and that, effectively, "sells" your interest in the property. ....
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Charlotte_native City

Charlotte_native

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That is my point. Until you close on the property, you have no interest in said property. A developer is completely free to cancel the contract at anytime as long as he gives you back your deposit. If someone is foolish enough to pay someone else for a sales contract, that does not put any obligation on the developer to honor it. The party picking up the contract for example may not be financially qualified to buy the property.
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Charlotte_native City

Charlotte_native

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Lukedog, the North Carolina Real Estate Commission defines "assignment of contract" as follows:

"Assignment refers to a transfer of rights or duties under a contract. Generally speaking, rights may be assigned to a third party unless the agreement forbids such an assignment. Duties may also be assigned (delegated), but the original obligator remains secondarily liable for them (after the new obligator) unless he or she is specifically released from this responsibility. Most contracts include a clause that either permits or forbids assignement. An assignment does not terminate the contract."

So as far as the state is concerned you can do this, but it depends on the specific contract in question.

EDIT: for horrible spelling -- not used to typing something I am reading!

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monsoon Gigalopolis

monsoon

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The NC Real Estate Commission is not the body of law in this state. It is charged with complying with NC general statutes from the NC General Assembly which is the body of law. That is a definition of assignment but as I said above, it is meaningless since the developer can always cancel the contract and walk away from it.

Anybody thinking they can sell a sales contract in this state without explicit agreement from a developer to do so is going to lose some money. I would be surprise if there have been ANY serious attempts of this in the downtown market.

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Charlotte_native City

Charlotte_native

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The NC Real Estate Commission is not the body of law in this state. It is charged with complying with NC general statutes from the NC General Assembly which is the body of law. That is a definition of assignment but as I said above, it is meaningless since the developer can always cancel the contract and walk away from it.

Anybody thinking they can sell a sales contract in this state without explicit agreement from a developer to do so is going to lose some money. I would be surprise if there have been ANY serious attempts of this in the downtown market.

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MZT Burg

MZT

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Someone has a Courtside unit advertised on Craig's List for $2500/mo.

I think that's pretty steep for a rental, no matter where it is. You can still rent a nice house in Dilworth for $1500. Heck, I could finance $350,000 at today's rates and buy a lot of things around here, and come out about the same.

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MZT Burg

MZT

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Rentals are supposed to be a budget market. Supposedly you're saving something, so you will have a downpayment to purchase in a few years.

I know this is a finance town, but the towers are mostly filled with middle level wage earners. At 50-60K a year incomes, with gross-income-to-rent of around 20% to 30%, that would imply common montly rental rates of around $900 to $1500. And voila! That is what they generally are in the suburbs.

I don't know on a $/SF basis how center city rentals go, but it's common to find units in 1st and 4th ward starting around $1100. So I get the impression that people are willing to pay a small premium to live in center city, but it's not anything extraordinary.

And that makes sense. You may be avoiding a daily commute to rent inside the loop, but most people will still choose to own a car (and the expense of owning one) in order to get to a lot of other things.

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lupitachica Whistle-Stop

lupitachica

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Who's to say? Me. Its a forum and the discussion is about the Charlotte condo market. I offered my opinion on the value of the condo's Uptown. I didn't ask for anybody to co-sign it. I'm not sure if the market is bearing out that most people disagree (with me). But even if they do, so what? We're not talking facts but opinions. In discussing worth (which is always subjective) I'm saying I don't think its "worth" it. The fact some do means we have a difference of opinion on the value of an Uptown condo.

I didn't bring up Manhattan or NY but since its out there ....I also think that $3000 a month rent for a 1 bedroom on the upper west side is crazy too (though the salaries for those looking to rent a place like that are higher than here so its all relative). But there is a huge difference btwn NYC and Charlotte (one must admit) in terms of what you get for those dollars. There is relatively little new development in any of 6 boroughs let alone Manhattan - essentially what's there is there. Space is at a premium in NYC. Not so in Charlotte. Not to mention the history, culture and vibe of NYC which is not duplicated anywhere else in this country. In comparison to Charlotte (a beautiful place which I choose to call home) with new construction all over the place and a cookie cutter vibe - you're talking apples and oranges. As is comparing Charlotte to London. I don't think its worth paying $2500 rent for 3 bedroom Uptown apartment in Charlotte when I could pay $3000 for a 2 bedroom on West 97th in NYC - if an diverse walkable city with a ton things to do and beautiful architecture is what I'm looking for. IN MY OPINION Uptown does not offer enough "city" to warrant the asking prices for rent or purchase.

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Charlotte_native City

Charlotte_native

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Eariler I had just wondered what the market rates were. Places like Cotton Mills and Gateway. Seems to me if Courtside rental rates aren't in line with those renters would simply move to the other side of the city (where there is actually more activity anyway). Quite often single units owned by individual investors are a bit on the high side in rents in this type of market because they are based more on making a mortgage payment and expenses than market rent that people are actually paying. There is also a premium, however, for living in a "condo quality" unit as opposed to one finished as an apartment (the reason Spectrum gutted and re-did the units at 5th and Poplar).

Rentals are supposed to be a budget market. Supposedly you're saving something, so you will have a downpayment to purchase in a few years.

I know this is a finance town, but the towers are mostly filled with middle level wage earners. At 50-60K a year incomes, with gross-income-to-rent of around 20% to 30%, that would imply common montly rental rates of around $900 to $1500. And voila! That is what they generally are in the suburbs.

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lupitachica Whistle-Stop

lupitachica

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The 5 is next to the 6 on the keyboard. I believe that's called a typo.

You can rent a 2bdrm on West 97th btwn Columbus & Amsterdam for $3000 and imo no bulletproof windows are needed.

As for the "glut", its my understanding that about half of the new construction considered part of that "glut" are not even built yet. I believe the simply wont be built if the market goes too soft. Meanwhile rental vacancies are very very low. Already built condos that can't be sold will turn into rentals. Is there new development - yes. While I was wrong to say that there isn't any - I did use the word relative in that sentence. Relative to the Charlotte condo and new single home market & the city's population I believe the new development in NY is small. Perhaps someone with more expertise in this can weigh in. I never proclaimed myself an expert.

And I have no problem with you voicing your opinion, but here is mine: I would find it crazy if it cost me even $100 a month to live in East Charlotte, but I'm sure you yourself pay way more than that to live there. But that's MY opinion.
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