Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Off-Topic
Reply to "Everytime a condo is built and/or a gentrifier moves to DC the city becomes less & less interesting"
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote] I do not want another luxury apartment/condo building that will sit half empty for 6 months. [/quote] NP. Yes, you do. This is what is going to solve the problem moving forward. They're overbuilding into a zero growth local economy. Republicans will control the budget process for at least the next two fiscal years. Even small cuts in federal spending over this period will result in local economic contraction. We're entirely dependent on federal spending after all. [b]Canyons of empty condos are going to put downward pressure on rents. Affordable housing, here we come![/b][/quote] No way. These companies all use interest-only bullet loans to finance these developments. They don't pay a dollar of principle on these condo or "luxury" rental buildings. As long as they can cover their interest expense, they will keep the units empty before lowering prices. Price cuts led to a lot of busts in DC in 2007-2009 (see Yards Park). These guys are all colluding to keep prices up; a price war hurts everyone. They are all banking on selling on these projects en mass to REITs, PE funds, or commercial banks. Or they just re-finance into another 10 year bullet loan.[/quote] "Or they just refinance?" LOL. Also, you forgot the part where you're supposed to say "it's different this time."[/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics