I had to read this article twice to make sure I didn't miss something. But no, I didn't.
With more, higher-priced living quarters available, the average income of new downtown households is expected to increase from $61,000, the average in 2000, to $71,000 by 2012, the RCLCO report stated. The expected household income increase is key to attracting the “proper retail for the market audience,” said Ellen Mendelsohn, a project manager with CAP’s economic development department.Uhuh. So $71K household income justifies $400K condos downtown?. That is still 6:1 ratio of price to income. You're right, not many people can afford. That doesn't mean lots of people still didn't buy those $500K condos using ninja loans. Ahh but Atlanta didn't have a housing boom so there will be no crash. Keep saying that yourself developers if it makes you sleep better at night.
“In real estate, it’s hard to make money when you are buying at the top price right off the bat. … I was amazed at some of the prices we were able to get buildings for in Atlanta—there’s a desire to be downtown—not everyone can afford a $500,000 condo in Buckhead,”
Secondly that increase works out to 1.5% a year. Yet these tools are celebrating this increase as some kind of proof that downtown households are upper end? A 1.5% annual increase in incomes is something to be worried about. Even using the bogus govt inflation numbers of 2% a year, downtown is getting poorer in real terms. But why let facts get in the way of a good real estate swindle?
Now hurry up and buy today before you get priced out. Today's $500K condo will be $5M in 5 years and you better get in now while you still have a chance at living the downtown condo American Dream.
Buy for $400K?
$400K mortgage at 6.5% is $2528
taxes at $350
HOA $300 a month
Total cost: $3178
rent the exact same thing for $2200
I dunno...$3178 or $2200 a month for the exact same thing.