Atlanta’s high rise condo real estate market is experiencing a tremendous rise in demand coupled with a lack of new inventory. The traffic gridlock of metro Atlanta has sparked interest in in-town living and this trend has accelerated as more people aim for a lifestyle that includes walkability, world-class restaurants, nightlife and shopping. Robust job growth, affordable housing and a vibrant nightlife has pushed Atlanta to become the premier destination in the Southeast. Prices are up double digits year-over-year and are projected to continue to increase 6-8% annually.
Atlanta Condos Investment Opportunity
Why invest in real estate?
- Generationally low interest rate ……The cost of borrowing has hit an all-time low!
- Increasing rents …… Rents continue to soar in Atlanta!
- Price appreciation …… Prices expected to rise by 6-10% annually!
- Tax advantages …… Lower your tax shield by deducting depreciation, cost of maintenance, HOAs, and interest expense!
Why condos as an investment asset class?
- Secular trend of in-town living ….. Walkability, world-class restaurants, entertainment and shopping
- Low inventory, high demand …. Lack of new growth in supply, coupled with scorching demand
- Easy landlord management ….. Managing a condo property is perfect for someone who wants something turnkey
- Leasing permit rights ….. A capped (ceiling) for the number of leasing permits creates an advantageous supply/demand dynamic
The latter in particular distinguishes Atlanta from other real estate markets. Unlike in most markets, Atlanta condos have a strict cap on available lease permits (usually no greater than 25% of the units). Owners of these “leasing rights” is analogous to taxi medallions in NYC – establishing a high degree of scarcity value. Owners without these rights are NOT able to lease their units without a hardship provision. Thus, landlords controlling units with approved leasing status are able to command pricing power amidst the controlled amount of supply.
The rate of return for investment condos in Atlanta measure by Cap Rates (defined as Net Operating Income / Purchase Price) is also higher than other metropolitan cities. Atlanta cap rates are between 5-7%, compared to 2-4% for markets like South Florida, San Francisco, and New York. The price points for Atlanta condos make it affordable for the first time investor.
Paul Tsyrlin has helped many investors find compelling condo investments in Atlanta, including personally owning multiple condo properties in Atlanta. He has forged strong relationships with property managers across the city and uses a proprietary model to source and evaluate condo investments.
Contact Paul today at 402-216-9348 to find your trophy investment property!