The media spin on real estate and then some December 12, 2008Posted by truthspew in Uncategorized.
Tags: apartments, business, condo, real estate
Our friend Gina is looking to buy a condo here in Providence, preferably near to the train station and the Rhode Island School of Design.
I should first explain that the news media has been crowing that while the housing market is slumping, condo sales are up. I call bullshit!
Why? Let us take two developments and follow their progress. There are many more examples I could use but these two will suffice for the purposes of demonstrating both the fibs being told by the Providence Journal, and the fraud perpetrated with banks and legislators by the builders of these projects.
The first I’ll discuss is 333 Awtwells Ave. When the project was first conceived they wanted to build an eight to ten story condo project. Instead they got four. Part of the reason was because someone held out on selling off to them and I say good for them.
Anyhow Gina looked at what was probably the smallest condo in there and it was $289,000 with a monthly fee of over $300. The building as small as it is has twenty one units in it with only five presently occupied, and it’s been complete for almost a years.
In a word they’ve only sold 25%. They’re also doing lease to own deals which I find interesting. It’s a secure facility too but the sticking point is that fee.
Then of course there are the Waterplace towers. Probably the fucking ugliest buildings in Providence. How they got those buildings past the historic preservation society is beyond me. It totally clashes with everything around it, so too does the G-Tech building but at least it acts as a giant mirror at night.
Anyhow that project got tax breaks. But get this, they can’t find buyers so they’re renting them out.
The same is going to be true of Capitol Cove. Those of us that have been in RI for more than twenty years know exactly how this will play out. There will be a glut of luxury apartment space in the city, which will push prices downward. It happened all around the city back in the 1980’s.
It’s so insane they’re taking perfectly serviceable tenements and turning them into condo. There’s one right around the corner from me and so far they’ve only managed to sell one of the ‘condos’. I say that because those aren’t condos, they’re apartments.
Did I mention how much empty space there is around here? It’s getting interesting.
Another thought came to me. The condos in Eagle Square sold. Why? Because they’re right next to a river, convenient to shopping, has plenty of parking, security, pretty much everything you’d expect.
Speaking of Eagle Square I’d love to see something done with the old General Electric plant. I constantly hear people say that GE pulled out of RI because of the taxes. That isn’t true. Business taxes in Rhode Island have been relatively stable for the past 60 to 70 years. The only reason GE pulled out of here was because of labor costs.
I applaud the Obama plan to penalize companies that have exported jobs, while rewarding those who create jobs here in the United States.