About UTC condo conversions…

[Diego Mamani]

If you live there, and you like the place, then you have nothing to worry about. Prices will go up and down, that’s how it is. Houses or condos, shoudn’t be seen as investment vehicles, unless you are a professional RE investor.

[PerryChase]

This thread links back to another thread about lawsuits at Vicenza. They are by the same developer.

http://www.piggington.com/the_lawsuits_start

Teamtrim, sorry to hear that you purchased at Verano. There’s not much you can do now, except sell and hope to recoup your money. Otherwise you can stick-it out there until the next boom (who knows when that might be). I guess if you like it there, then that’s OK.
Another alternative, would to be to sell at a loss then wait to buy a nicer unit at a lower cost later. The market is still fairly high now. Of course, with this last option, there’s no guarantee. It all depends on your situation and what you want. How long do you plan to stay at Verano?

Yes, Verano is nice if you don’t look closely. The rails at the pool are rusted (paint applied on top of rust). There’s no air conditioning, the cabinets in the kitchen are just slapped in, the windows have not been replaced… It appears to me that the conversion was no done well at all. The problem with nice and not so nice units is that with any track development, it’s the $ per sf that drives the comps upon resale.

How about getting the buyers together to sue the developer so they can fix any defects before they ride into the sunset? Remember, condo owners will be stuck with maintenance problems that are not fixed now. While Crescent Heights is the marketing umbrella, the development is owned by some LLC. That would limit Crescent Heights’ exposure.

[Anonymous]

I have been living at Verno for 5 years now. The unit I bought is original & not upgraded as I can do that myself. This kept the price down. As far as condos go I don’t feel it is that bad but each to their own. What I hate are the dense 5 story places which you have to access by elevator, only 1 window in the main room and no covered parking.

I got windows in every wall, lots of sun light plus it’s only a 2 story complex. I was planning to stay for another 3 – 5 years. I just hate the though of losing money if/when I sell or if I have to sell suddenly. I hope that 40 – 50% drop number is wrong.

[Anonymous]

Delete

[powayseller]

teamtrim – Read the Bubble Primer on this site, and read Sell Now by economist John Talbott. Then make a decision. But hurry and read the stuff today. If you choose to sell, your chances for finding a buyer, and having to seriously reduce your price, will be much lower after summer. Condos will get hit hardest. End of this thread for me. Good luck.

[mycroft]

I’m wondering what effect rentals by the developer and flippers are going to have on the owner occupied units. My understanding is that many lenders are leery of condo complexes with less than 60% owner occupacy.

On top of that, teatrim mentioned that the complex is 70% sold out. So, if the developer winds up having to keep about 30% of the units for rentals, it seems like they will be swinging the big stick in the homeowner’s association. Might make it difficult to do anything…or on the flip side, individual owners may wind up paying for improvements they may not want just so the developer can more easily sell its remaining units.

[smfj]

This post sparked my interest in taking a look at these complexes…

Hard knocks in Villa Vincenza:
MLS #: 068035634
listed $240,000 – 274,876
originally $359,900
listed 4/30/06
paid $328,000 11/29/05

However, nearby, someone hasn’t gotten the message that flipping is pas mode:
MLS #: 066059469
listed: $489,000
paid $422,000 6/9/06

Does anyone know of any reasons why example 1 might not be as bad as it seems, or the seller in example 2 might not be living on another planet?

[PerryChase]

smfj, home #1 might sell for $240,000. But in my view, it’s still, too much than the $1,200/mo rent an “investor” would get from a student.

Home #2 would never sell for anything close to $489,000. I don’t know what the owner is smoking. The developer is selling a 2-bed in the mid $300k.

http://www.villavicenza.com/

As as said before, this place is just a glorified rental apartment complex. The only redeeming thing is that there’re good-looking young and smart UCSD students walking around. 😉

[smfj]

Thanks, PerryChase. I just wanted to make sure I wasn’t overlooking something.

Funny, when I saw #2, I said out loud, “What are they smoking???”

[PerryChase]

$239k for a 1 bd condo at Vicenza. The lowest I’ve seen so far. We’re not too far off from the 180k I predicted. I might revise my low prediction for a 1bd to 150k in UTC.

Does any realtor here have cost info on this flip? I can’t find any data.

8889 CAMINITO PLAZA CENTRO #4721, SD – University City, CA 92122
MLS# 066075283

Actually this is not a bad price since sellers want the same in crappier areas of town.

[Anonymous]

Re: 8889 CAMINITO PLAZA CENTRO #4721

I believe this is the information you were looking for on this unit.

The purchase price was $289,000 in July 2005.
535sq ft
1 bed 1 bath

I feel sorry for anyone buying into this place to actually want to live there. The sound insulation between units is an absolute joke, let alone the decreasing value of the units.

[no_such_reality]

DM, somewhat right. While you have to like the place, you cannot discount the fact that it is a planned community with substanial common area. Common area that needs to be maintained by the HOA and the HOA dues from it. Those places that see the most wear and tear and least maintenance are those that have large number or investor/absentee owners.

It may be a good place now, but condos tend to fair much worse in a economic and RE downturn than SFH for decrease in quality of living. As PC pointed out, the pool fencing is already showing from the workmanship. Those new pool chairs will be worn and not replace. The gym equipment… the same etc. etc. etc.

[PerryChase]

Should we not want them to keep on approving and converting away? The more inventory there is the bigger the crash. That would be great for people waiting for the best time to buy.

Plus, if the condos end up reverting back to apartments, then the renter will get a better product.

The city has an interest in existing units getting upgraded to prevent urban decay.

Personally, I don’t mind if greedy investors loose money.

[UTC renter]

I agree, and think that a decline in housing prices is not only good for the renters like us (for selfish reasons), but for the greater SD community in general. For example, housing costs are a great impediment to hiring. At my institution (a university) we have lost several excellent job candidates due to high housing prices. These people were initially attracted to San Diego by the intellectual resources, the weather and all the funky things that California has to offer. In years past, they would nearly always come from places like the Midwest. But recently, the financial trade-offs simply became to large, and a midwestern scientist often sees no net benefit in trading a nice large home in a nice, comfortable, educated, walkable communities (e.g., Ann Arbor, Bloomington) for a tiny home in commuter suburbs. For us, local recruiters, it is also progressively heard to point out the virtues of the “California dream” while showing the candidates “affordable” 600K tract homes 30 minutes from the university, surrounded by strip malls and chain restaurants.

So, yes, please, keep creating more inventory and crashing those crazy, so San Diego can lure the best and the brightest here! Or, give us bay area wages, nature, and restaurants!

[mrquoi]

PerryChase — if you or your aunt are interested in UTC, but not in having student neighbors, noise or traffic nightmares, you might want to keep an eye on the southern side, ie south of Rose Canyon, nr Governor. The condo developments are older, and mixed into a more residential area. It was only three years ago that my neighbors sold a small 1 br for under $150K in the area.

Other things to keep in mind for UTC is that contstruction is actually starting on the Regents Road bridge and that a Coaster station is in the works for the corner of Nobel/Hwy 805. Being near public transportation is a huge plus for seniors.

[Author]

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