Highly Amusing Article on Austin Condo Shopping

[tildahat]

I have a couple nits to pick, but generally pretty amusing. I went to the mat for the Spring in a BCNA debate and I'm kind of pissed that they jacked up prices so much, even though the "teachers can afford it" was always obvious BS.

http://www.austinchronicle.com/gyrobase/Issue/story?oid=oid%3A458459

I like the quote: "Who the hell are these people? Where does their money come from?"

[M1EK]

I have a couple nits to pick, but generally pretty amusing. I went to the mat for the Spring in a BCNA debate and I'm kind of pissed that they jacked up prices so much, even though the "teachers can afford it" was always obvious BS.

http://www.austinchronicle.com/gyrobase/Issue/story?oid=oid%3A458459

I like the quote: "Who the hell are these people? Where does their money come from?"

A bit misleading. One teacher couldn't qualify for a mortgage of $235,000, but two surely could.

[TDoss]

http://www.theonion.com/content/files/images/character1.article.jpg

Austin Chronicle = PLAYA-HATUHS

[JAM]

Can someone help me understand why the focus of affordability centered on downtown? Why not Tarrytown, Hyde Park, So Co, Travis Heights or any of these other adjacent communities? that are biking, walking or an easy bus ride away.

[tildahat]

Can someone help me understand why the focus of affordability centered on downtown? Why not Tarrytown, Hyde Park, So Co, Travis Heights or any of these other adjacent communities? that are biking, walking or an easy bus ride away.

Surely you are not suggesting that there is something contradictory about the same people who oppose downtown towers on the basis of "affordability" then also opposing infill, multi-family, garage apartments, duplexes, etc. in their own neighborhoods? ;)

That said, I would like to see more 600 sqft 1-bedrms and fewer of the 1400 sqft 1bdrs in these new developments. That would get more people downtown, greater diversity, and 15 years from now that 600sf one will be (in context) affordable, while the 1400sf will still be expensive. Also how about some 1000-1200 3bdrms so that a family with a couple kids could actually live there past toddlerhood?

[tildahat]

A bit misleading. One teacher couldn't qualify for a mortgage of $235,000, but two surely could.

I'm sure it's theoretically possible. Using the 3x salary rule (easiest math) the two teachers would have to make 39K each. I think AISD starts at 35K or so. So maybe with 5 years experience and no more student debt they could get a one bedroom. So yes, a small subset of teachers - childless and student loan debtless teacher couples - could live there. ;)

The other claim Spring made about "middle class families" is pretty ridiculous though.

[MichaelB]

I thought it was actually fine. They pointed out many issues that have been talked about here over the past year. Some I agree with, some I don't. So what's the problem. They werent haters to me. ( and I live downtown) They pointed out, oh so well, how misleading some of the pricing/marketing has been; pointed out that many of the views suggested are misleading. (We had quite a healthy debate on here regarding developers and their obligation to include future developments in thier models of an area); good point about the genrification of design inside and out. If you can afford it or not.... these are still issues. Yes, they came from a bit of a "have not" mentality. But I would almost be willing to bet you they will be plunkin' down the goods in 10 years. And in 10 years we will all look back at these towers and think they are sooooo late turn of the century! And sooooo the same! And we will all be so embarassed we made such a fuss. Won't that be fun! (OK they turned to sardonic humor, sorry)

I still like all the pretty craines. (unfortunatley, I'm not kidding!)

[M1EK]

I'm sure it's theoretically possible. Using the 3x salary rule (easiest math) the two teachers would have to make 39K each. I think AISD starts at 35K or so. So maybe with 5 years experience and no more student debt they could get a one bedroom. So yes, a small subset of teachers - childless and student loan debtless teacher couples - could live there. ;)

The other claim Spring made about "middle class families" is pretty ridiculous though.

Well, the claim wasn't "one teacher, straight out of school, with kids". Nor was it "two teachers with kids". It was just "teachers". And with one car instead of two, for instance, it'd be easier to qualify for a mortgage of this amount at Spring than a similar mortgage in Round Rock.

And I agree with the "middle class families" comment. A family income of $100K is solidly middle-class by any definition I'm aware of, which provides ample money to buy one of the smaller units. Perhaps people just need reminded that everything's relative - this is clearly MORE affordable than other downtown buildings, right?

[tildahat]

Well, the claim wasn't "one teacher, straight out of school, with kids". Nor was it "two teachers with kids". It was just "teachers". And with one car instead of two, for instance, it'd be easier to qualify for a mortgage of this amount at Spring than a similar mortgage in Round Rock.

And I agree with the "middle class families" comment. A family income of $100K is solidly middle-class by any definition I'm aware of, which provides ample money to buy one of the smaller units. Perhaps people just need reminded that everything's relative - this is clearly MORE affordable than other downtown buildings, right?

Well, yeah, it's more affordable and that's the argument I made ("pushing the envelope downward" or something like that) when debating the BCNA NIMBYS. (Is it NIMBYism if it isn't remotely close to your back yard?) I was merely pointing out that I think they 1) overstated it based on the original numbers and more importantly 2) it ended up costing significantly more than the original claims.

[mars-man]

Did y'all notice the Chron piece identified a picture of the under-construction Monarch as Spring? That made me chuckle, because at the rate the Spring clowns have been going, that pic may be the closest they ever come to an actual building.

[sakyle04]

The article definitely paints the salespeople in a poor light.

It seems they are willing to say anything to push that sale. All things to all people.

[austlar]

Seems to me the article was rather suggesting that the buyers and renters for all this new product might not be as plentiful as the RE folks would like us to believe. I think there is some truth to this prospect. This looks and feels a lot like a replay of the 1980's to me, only this time we are likely to have a period of "see-through" apartment towers as opposed to "see-through' office buildings. I look for it to turn into a buyers' and renters' market in another year or two, if not sooner.

[Lobotomizer]

Seems to me the article was rather suggesting that the buyers and renters for all this new product might not be as plentiful as the RE folks would like us to believe. I think there is some truth to this prospect. This looks and feels a lot like a replay of the 1980's to me, only this time we are likely to have a period of "see-through" apartment towers as opposed to "see-through' office buildings. I look for it to turn into a buyers' and renters' market in another year or two, if not sooner.

Your prediction has proven incorrect.

[austlar1]

Your prediction has proven incorrect.

True dat, but it was kinda iffy around 2008 or so. Lots of empty apartments for a few years there. Market did not fully recover until around 2011 when things really took off. Note the date of these posts.