News 11-1-07 Belvedere Towers Sales
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Posted by: Walt - 11/2/2007 5:35:57 PM
It would appear more rentals for the hard working, low wage earners here in Nevada? Sad to see so many condos/townhomes become rentals. It'll surely bite the owners as the economy drives south. I wonder how these units will rent when oil is $150/barrel?...$200/barrel.
Posted by: Mike Van H - 11/4/2007 11:54:30 AM
Hey Walt. I have to disagree with you a bit. If and when oil reaches $150 a barrel, you'll probably see the highest mass migration of people moving from suburbs 20 miles away to urban cores in recent history. Few will want to commute, and proximity to job will be the motivating factor. The price of gas in Europe is one reason why cities are so dense there. Also, I want to add that none of us have any idea how many of those Californians will be moving up here and how many will be renting their units out. The Montage has a low percentage of part time residents as does Palladio. Given the price points, the rent would have to be pretty high for 1 bedroom and studio spaces to cover the mortgage and HOA fees, right?
Posted by: Walt - 11/4/2007 1:23:24 PM
Yes, I agree on a few of your comments; however, being well informed regarding the oil situation, a breaking point is on the horizon. Granted, we will see the death of suburbia here in Reno, but in order for these new condos to survive, whether owner-occupied or as rentals, they'll need to be occupied. I do know for a fact that many of the downtown condos are being bought by those with California addresses, a sign that a decent number will be used as investment property, i.e., rentals. With the cost of living headed higher, the rents will be increased a commensurate amount to cover these costs, i.e., property taxes, HOA fees, insurance upkeep, etc. My fear is what will occur when the rents, already at nosebleed levels, reach a point at which they are unrentable, with wages being what they are, and what they will become by 2009. Sure, areas like the North Valley and Spanish Springs should be very worried about the energy situation -- OIL -- but the rental situation in the heart of Reno will experience its own problems. Time will tell. Ask yourself what it'll be like here in Reno, or anywhere, when oil is at $200/barrel? Believe me, you have seen the best of times.
Posted by: Intheknow - 11/5/2007 11:50:35 AM
Walt, you are right about fuel costs and it is also true fuel costs drive up the need for eco friendly urban living.
Have you ventured into the residential towers downtown to investigate how different they all are and that they cover a very diversified condo owner.
Downtown Reno has not offered this quality of living before and many people that are interested in relocating to our area find it more attractive and interesting than ever before. Stats prove that people pay more for a higher quality of living and services both when purchasing and renting.
More business could start up or move to Reno if we can offer the style of living that they currently enjoy. We are growing up and as a life long resident and an owner of a downtown condo, I am very glad to see it.
Posted by: Justin - 11/8/2007 4:17:02 PM
Those sales figures do seem odd to be honest, but I crack up at some of the people who post on Diane's blog. There seem to be a bunch of renters on there who are wishing for a complete collapse of the housing market. Looney.
Posted by: KJD - 11/11/2007 7:16:20 PM
Not to worry - not all purchasers with CA addresses are planning renting out. We are planning on using ours as a second home for now, possibly relocating in the future. We are very excited about Reno downtown and the possibilities!!!