Economic Feasibility Estimate

The following considerations endeavor to shed light on the economic feasibility of Loft 401 as a lifestyle investment. Below you will find certain factors to consider when contemplating the purchase of a new Loft 401 condominium:

A) Timeliness of purchasing in Loft 401:

Loft 401, like many other condominium communities, offers special pre-construction pricing for buyers who purchase one of the first tier (in this case, the first 10 units sold) properties in the building. By purchasing early, the buyer can be relatively assured of garnering a certain degree of passive equity prior to the commencement of regular loan payments. This occurs via a tiered pricing scenario whereby the developer raises prices by a certain percentage after the total number of units in each tier is sold. Loft 401 is tentatively scheduled for a 3-tier pricing schedule.

B) Deductibility:

As in most real estate purchases in the state of Oklahoma, money spent on property tax, and mortgage insurance is tax deductible.

C) Advanced Appreciation:

New construction properties typically enjoy a cycle of appreciation which increases more rapidly than that of older properties.

D) Credit Enhancement / In-State Tuition

If a parent plans to purchase a condominium for their child the benefits can be two-fold: First, the child’s name must be included on the deed, thereby benefiting the child’s future credit rating by way of proven stability. Secondly, if the child is not a resident of the Oklahoma, he/she may be eligible for in-state tuition after a period of approximately one year. This could result in a savings of approximately $10,000.00 per year.*

*please see in-state tuition guidelines as displayed on the Oklahoma University website.

E) Asset Ownership

For reasons such as appreciable strength, diversity, and leverage; owning real estate assets is widely held as an integral part of any portfolio strategy.

Download Scenario Estimates PDF (Right-Click and choose to save the PDF to your computer)

Questions and Answers

If you have questions, we have the answers…! If your particular question is not answered below, please contact our sales team.

Q: When will construction start and when will it be finished?
A. Construction is anticipated to begin in September 2009 with homes ready for occupancy by Spring 2011.
Q: How long will the ‘pre-construction’ pricing be available?
A: Pre-Construction pricing is being offered to the first 12-15 buyers, or until the construction of the project begins, at which time prices are subject to rise.
Q: How can I purchase a unit?
A: One may contract to purchase a unit by signing a Purchase and Sale Contract.
Q: Why do unit prices vary?
A: Generally, prices vary from location in the building and floor level.
Q: How far is the project from the OU campus?
A: From the NE corner of the OU campus property, the walk is approximately 4 minutes. The walk to Starbucks and Campus Corner is about 6 minutes, and in less than 10 minutes walking, you can be at Oklahoma Memorial Stadium and many of the campus buildings.
Q: Is the property secure?
A: Yes – all entry points will be access gate controlled.
Q: What is the parking situation for the property?
A: Each unit will be assigned one covered parking space per bedroom within the gated area. The property offers 63 covered parking spaces. Guest parking will be provided within the gated area.
Q: How is the property accessed?
A: Access gates to the site will be controlled by wireless transmitters, one per bedroom. Pedestrian gates and property doors will be ‘key-fob’ controlled. Entry gate control panels will be provided for Guests to contact owners for entrance into the property.
Q: How many units can I buy?
A: There is no limit to the amount of units you may purchase.
Q: Can I assign my contract?
A: Our contract allows buyers to assign their contracts, but only with our prior written consent. If we consent, we will require that you pay us a fee of 3% of the total purchase price of the unit. This fee is non-refundable and due at the time of the assignment. Buyers should remember that even if an assignment with our consent is made, the original buyer is still obligated to purchase if the person they assign their contract fails to close for any reason.
Q: Do you allow for other Realtor or Broker commissions?
A: Yes, we will offer 3% to a Buyer’s Agent, provided the Buyer’s Agent is properly licensed to be paid a real estate commission under Oklahoma law.
Q: Do you allow for a financing contingency?
A: No
Q: Who can I go to for financing?
A: You may use anyone that you are comfortable with. However, please check with our sales team for information about our ‘Preferred Lender’.
Q: What does the seller pay for closing costs?
A: The Seller will pay for Owners Title Policy Premiums if issued by Sellers established Title Company, the escrow fees and provided our designated closing attorney is utilized for closing, the closing attorney’s fees, which shall include closing attorney fees, for any loan you may obtain in connection with the purchase of your home.
Q: What does the buyer pay for closing costs?
A: The Buyer will pay for their attorney (if you have one) the costs of your mortgage title insurance (which, if you take advantage of our recommendation above, can be handled on a simultaneous issue basis at a cost of what we currently believe to be about only $50.00), transfer taxes (i.e. recording costs and fees for the deed the developer provides based upon the amount of the unit’s purchase price), fees and costs associated with any financing, such as loan origination fees, etc. and all other closing costs the developer is not paying as provided above.
Q: What are Home Owners Association dues, and what do they cover?
A: These are fees that are paid on a monthly basis as an owner at LOFT 401. The fees cover Common Area Maintenance, Building Insurance, Water, Sewer, and Trash. High Speed Internet and Cable are currently being negotiated as a part of the HOA dues, the inclusion of these services is ‘to be determined’, LOFT 401 buyers will be notified of the status once final.
Q: How are the fees calculated?
A: Fees are calculated from the operating budget of the HOA. The operating budget is then divided out per unit based upon the size of your home. Presently, these fees can be estimated at $.20 / Sq.Ft. / month.
Q: How is earnest money handled?
A: Earnest money will be held in escrow, and will not be used for the construction of the project. Earnest money can be paid by personal, company, or certified check. Should more than one unit be purchased by an individual or group, each unit purchased will require an earnest money.
Q: What is the earnest money deposit amount?
A: 5% of the purchase price will be due upon the execution of the purchase contract, an additional 5% will be held as a promissory note upon commencement of the construction.

The above question and answer section is limited to certain general questions that our experience indicates are often of interest to prospective buyers and the answers thereto are also general in nature. Upon your review of the Purchase and Sale Agreement and Condominium Documents, you will find more specific answers.