Thursday, March 24, 2005

Harley E. Rouda Jr.

Moving to a new city is, at times, a shot in the dark. Although you’ve probably learned some information about your new neighborhood before the actual move, the details may still be sketchy. Sure, your prospective area is only a 10-minute drive from your office. However, is it close to a good school system? Is a veterinarian located nearby for your pets’ yearly checkups? Is a 24-hour pharmacy nearby for late-night prescription refills?

A survey by the National Association of Realtors supports the idea that although home buyers consider cost and affordability when purchasing a home, location is a major selling point. Even though you may feel as if you’re getting a deal on the home of your dreams, consider its location: if it is next to a run-down neighborhood or lies a half hour or so from any nearby schools, what you’re saving in price could cost you when it comes time to resell.

Consider these additional points when scoping out your new home’s location:

Evaluate your family’s day-to-day lifestyle. Do you enjoy a morning jog before heading to work? Ensure your new neighborhood’s streets are safe and well-lit. Is your spouse a movie buff? Check out the proximity of theatres and video stores. Does your daughter take dance lessons twice a week? Determine if a studio is located nearby. Otherwise, you’ll rack up the miles on your car and lose valuable time driving to and from your favorite activities.

Remember the value of educational facilities nearby. Even if you are a newly married couple, single person or empty-nester — all without school-age children — homes near schools tend to retain their value over time. And when it comes time to sell your home, families will readily invest in a home that is close to schools and college campuses.

Take a look at established neighborhoods. True, older neighborhoods often feature homes with higher price tags. On the other hand, a house in a new neighborhood that today faces a sprawling field may one day look upon a parking lot, depending on the zoning of nearby land. Do your research. When viewing homes, be sure to ask your Realtor about any vacant property near the home.

Make a priority list. What’s most important to you and your family? Since it’s nearly impossible for you to be close to every amenity, decide which ones are at the top of the list. Once you narrow down the priorities, it will be easier for you to find a neighborhood that fits your needs.

Remember, many tools are available online to help narrow down your location search. Some programs allow users to identify those amenities at the top of their priority list and immediately view which are closest to their selected home via a detailed map. When you’re pressed for time, services such as these take the guesswork out of relocating.

It is, after all, these conveniences that make your house and the surrounding community a home — and the harried moving process often only allows you a few weeks (or at times, days) to check out your new neighborhood. Nevertheless, any background research you can do prior to signing on the dotted line brings you that much closer to visualizing a seamless transition.

Thursday, March 17, 2005

Harley E. Rouda

If you’re considering purchasing a new home, you’re in luck, because you can still take advantage of record-low interest rates. What does that mean for you? Simply put, you can afford more in a house. Lower rates allow you to purchase a larger home that you otherwise might not be able to afford. So, today’s housing market allows you to purchase additional space to accommodate you and your family – without breaking the bank.

That said, can you afford the home you want? It’s easy to find out. You simply need to examine your income and compare it with what you currently owe. The difference between these two will ultimately determine your loan options.

The National Association of Realtors (NAR) suggests you start by analyzing your gross monthly income. This includes what you bring home in your paycheck each month as well as any other assets, including real estate or stocks. Not sure which of your assets count as income? Consult your Realtor or loan officer for advice.

Your next step is to analyze your current debt situation. How many credit cards do you own, and what are their balances? How much is your monthly car payment? Do you have any personal debts like alimony or child support? Remember to use your minimum monthly payment when making your calculations, and if you plan to pay it off in the next six months, don’t include this figure in your calculations.

Curious as to what lenders look for when determining your loan? First and foremost, they want you to be able to pay it – so they won’t stretch you too thin in reference to your other debts. In addition, the NAR reports that lenders will expect your monthly housing costs to be less than 28 percent of your gross monthly income, and your combined housing costs and other debts to be less than 36 percent of your gross monthly income. Otherwise, your loan may not be approved.

Of course, these figures are estimates, depending on your personal situation. For example, a large cash down payment may help your overall debt situation and allow you to quality for a better loan. Or, if you have a wealthy relative or friend who can cosign on your loan, you’ll have more options.

The NAR reminds buyers that they have a variety of loans to choose from, including adjustable rate loans as well as fixed rate programs. Again, be sure to talk to your Realtor and loan officer to determine which loan program best fits your needs.

By Brian R. Ball
Business First of Columbus
Updated: 7:00 p.m. ET Feb. 27, 2005

Six years after investors bought it for $500,000, the 100-year-old Hartman building in downtown Columbus is slated to return to its roots as a different type of residence.

A partnership between Plaza Properties Inc. principals and real estate investor Yhezkel Levi plans to begin converting the six-story building at 150 E. Main St. into condominiums within a few months.

Office alternative
The second, third and fourth floors of the 72,000-square-foot building will each include 12 condos from 525 to 1,327 square feet at prices from $129,900 to $263,000. The fifth floor, much of which is under a long-term lease to David Glimcher Co., may be converted at a later date.

“It’s a great, historic building and we see the demand for condos in that area,” said Samantha Falter, project coordinator for Plaza Properties. “The market hasn’t been very good for offices.”

The conversion won’t affect the Grand Hartman and Metropolitan ballrooms on the building’s top floor or its ground-floor retail spaces.

The partnership bought the building in November 1998 and had hoped to attract design firms and tenants looking for loft office space.

But the office market has slowed considerably since the late-’90s downtown office boom, leaving the Hartman and other buildings largely vacant.

Demand for condos
Plaza Properties, a major owner of rental properties throughout Columbus, has a growing interest in downtown residential projects.

It developed 61 condos at its Renaissance project at South Third and East Mound streets, one of the first residential projects built under the Coleman administration’s downtown housing initiative.

The developer also has tentative plans to renovate the Yukon building at 601 N. High St. in the Short North into studio condos, as well as a condo project in the planning for a site at East State and South Fourth streets downtown.

Acceptance of the Renaissance project prompted Plaza Properties to consider condos at the nearby Hartman.

“The Renaissance showed there is a demand,” Falter said.

Better opportunity
The Hartman building joins a growing list of former office properties downtown being converted into housing:

Spectrum Properties has office buildings at 221 N. Fourth St. and 78 E. Chestnut St. under conversion into condos after completing its Connextions project at the former SBC/Ameritech building at 104 N. Third St.
Another notable conversion project is the Brunson building at 145 N. High St., which Long & Wilcox of Upper Arlington is renovating.
Also being converted to condos is 106 N. High, a former department store and state office building, by the property’s owner and Global Development Group of Mexico City.
Bill Greenlee, president of ROI Realty Services Inc., a commercial real estate brokerage, said the Hartman building couldn’t compete because of its relatively high office rents and limited access to parking.

“It’s a nice, renovated property with an attractive lobby,” he said. “It made our list to tour with tenants, but there wasn’t anything powerful about it.”

With the slump in office leasing, Greenlee said the condo conversion trend bodes well because it slowly reduces the amount of vacant commercial space and raises the number of people choosing the live downtown.

“You’re taking building stock off the market where there’s no demand and converting to a product where there is a great deal of demand today,” he said. “It makes for a vibrant downtown.”

© 2005 Business First of Columbus