Subject: RE: Vanguard Loft appreciation question
From: Stankos, Brian (bstankos@CANNONDESIGN.COM)
Date: Mon Mar 03 2008 - 10:28:18 CST
Everyone,
I'd like to share a wider perspective on renting units at Vanguard
Lofts. Fannie Mae and Freddie Mac, the two largest mortgage investors
in the country, have regulations regarding the types of mortgages
they're willing to purchase on the secondary market. They will
generally not underwrite mortgages if the percentage of rentals is over
20%. Any mortgage in a condo building with more than 20% rentals will
carry a higher interest rate as a result, which in turn affects the
resale value of the units themselves. Furthermore, buildings with a
high percentage of rentals generally have higher assessments due to
increased wear and tear on common elements simply because many renters
do not have the same level of respect for a property as unit owners.
Also, common insurance prices increase dramatically as the number of
rentals increase.
As a board we understand that in certain situations owners may need to
rent their units. However, a careful balance must be struck between
renting units and any potential negative impact on the value of the
remaining owner-occupied units in the building.
Brian Stankos, #513
Board Treasurer
-----Original Message-----
From: vanguard-talk-bounce@venus.soci.niu.edu
[mailto:vanguard-talk-bounce@venus.soci.niu.edu] On Behalf Of Robin
Raffel
Sent: Monday, March 03, 2008 9:13 AM
To: vanguard-talk@venus.soci.niu.edu
Subject: Re: Vanguard Loft appreciation question
Zach,
I would rent it also. I just got my place reappraised
and it went down $20,000 in 2 years. I would wait
until the market picks up again to see it.
robin
--- genevieve sanchez <sanchezgenevieve@yahoo.com>
wrote:
> Zach,
>
> I would keep it and rent it out i have owned my
> unit for 8 yrs and the pass 4 yrs it has been rented
> out with great tenants. I have used North Cylbourn
> Group, Apt People & Craigslists etc.
>
> Genevieve
>
> Zach Simmons <zsimmons@gmail.com> wrote:
> Dear Neighbors,
> I'm writing to ask your advise. My new position is
> forcing me to relocate
> this summer. While I have enjoyed the last 5 years,
> my time at Vanguard
> lofts will be drawing to a close. This of course
> raises the question of
> what I should do with my condo. Do I sell or rent it
> out? As you all know
> there is a great deal of local development,
> especially with the West Loop
> Promenade being delivered in 12-18 months. I was
> wondering what people's
> thoughts were regarding appreciation in the
> building. Basically, I'm trying
> to decide if I should rent it out for 1-2 years to
> speculate on an increase.
>
> I would appreciate any thoughts/opinions.
>
> Best Regards,
>
> Zach
>
>
>
>
>
>
>
>
>
> ---------------------------------
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