Is Downtown Des Moines Expensive?

One thing that is quite common in response to moving downtown–”it’s expensive.”  Well, is that response accurate?  Let’s take a little closer look.

If you remember from part one of this series, moving downtown is all about the lifestyle.  Choosing to leave the burbs for the city is all about the lifestyle changes, and not as much about the actual unit that you buy.

Is buying a unit downtown expensive?  Let’s take a look at a few quick examples of what is on the market.

 

Brownstones on Grand

Unit is listed at $324,900, contains 1,979 square feet for a price per square foot of $165.00

 

Ingersoll Square

Unit listed at $137,900, has 701 square feet for a price per square foot of $197.00

 

Gateway Lofts

Unit listed at $166,800, contains 847 square feet for a price per square foot of $197.00

 

Soho Lofts

Unit listed at $140,170, contains 843 square feet for a price per square foot of $166.00

 

Mulberry Lofts

Unit listed at $151,900, contains 689 square feet for a price per square foot of $220.00

 

418 Liberty

Unit listed at $239,072, contains 964 square feet for a price per square foot of $248.00

 

Whiteline Lofts

Unit listed at $197,000, contains 834 square feet for a price per square foot of $236.00

 

Park Place

Units start at $80,000!  (that’s cheap anywhere)

 

What you can’t see by these examples is what is included with your unit.  For instanceWhiteline comes in basically shell form, so if you want to finish your unit that will cost extra.  However, Whiteline does have a rooftop deck, patios or decks with each unit, a great workout facility and a concierge service.  From what I’ve seen Whiteline is one of the, if not the most expensive properties downtown.  They do have the best view of the city, but because they have a high price per square foot (in comparison), and you’re buying a shell that view does come with a cost.

Ingersoll Square has a pool.  Park Place has secure parking, Liberty has GYM/FX downstairs–and I’ve heard that people buying there are being given memberships.  Mulberry Lofts has a community room with a king size plasma tv, couches, a pool table, a rooftop deck and a workout facility as well.

HOA fees are also something to consider about buying downtown.  Many residents downtown don’t have to pay for their cable, internet, heat, water, sewer, garbage and parking because they’re included in the HOA fees.  The HOA fees also cover property insurance, maintenance, concierge services, gym memberships (workout facilities) and other perks.  Each building covers different things, so be sure to check with each individual association.

And I haven’t even touched the big issue yet.  TAX ABATEMENT.  Downtown residents get to enjoy a full 10 year tax abatement.  That means no property taxes.  On a $250,000 house that owner will pay about $5,000 per year to the county in property tax.  If that person spent $250,000 downtown they would pay $0.  That’s $50,000 back into that person’s pocket right there.  Not all properties qualify for this, for instance the East Village has a 5 year tax abatement.  Do your homework of course, but that tax abatement is HUGE!

Now that I’ve filled your head full of numbers, and info about downtown, let’s see what suburban living goes for these days.

 

Ankeny

This house is yours for $189,900.  It has 1,287 square feet for a price per square foot of $148.00.  Of course, charm, style and personality come separate.  This house will be in a neighborhood of beige houses that all look the same.

 

West Des Moines

This beauty is yours for $264,900.  It has 1,511 square feet for a price per square foot of $175.00.  Watch out for the minivans!

 

Urbandale

Another fine piece of suburbia running $350,000.  This palace has 1,739 square feet for a price per square footage of $201.00.  Oh, and that $350,000 price should fetch about $7,000 per year in property tax.

 

Waukee

For $334,900 this 2,217 square foot is yours at a price per square foot of $151.00.  Commute comes standard with this model.

Now, let’s get to the point of the story.  Is moving downtown expensive?

By moving downtown you would be able to eliminate the following:

• property taxes

• gym membership

• utilities

• maintenance

• lots of gas (if you work downtown, and 70,000 of you do)

• time wasted in the car

What are all of these worth?  How much gas would you save if you eliminated 30 miles per day?  With gas over $3.00 a gallon that would be quite a bit of money per month.  In the hundreds of dollars for sure!  Ten years without property taxes is worth 5 figures for sure, possibly 6 if you’ve bought an expensive unit.

Look at the price per square footage as well.  Urbandale’s unit was $201!  That’s higher than SOHO, Park Place, Ingersoll Square, Gateway Lofts and the Brownstones on Grand.  And you get to pay property taxes, your utilities, lawn care, snow removal, roof, paint, carpet etc.  However, you would get to live in a neighborhood with little to no personality!

In reality, downtown ISN’T more expensive than the burbs.  The units might seem a little smaller, but you’ve got a lot of extra space to use–space that you don’t always have to pay for.  You might not have a backyard, but you would have Gateway Park and Grey’s Lake, both of which are larger than what you would have, and someone else takes care of them!

You may not have that finished basement–BUT, you’ve got a rooftop deck, a community room full of toys that someone else pays for, your own workout center in building, and coffee shops and restaurants next door.

Living downtown is a new thing, and people will have there biases.  As you can see, I have mine.  The suburbs are boring ugly places devoid of character and uniqueness.  What people don’t realize is that those burbs run just as much, if not more, than what you can have downtown.  AND, downtown comes maintenance free, which gives you more time to have fun!

I personally think that downtown may be cheaper than the burbs.  Get rid of gas, gym memberships, property taxes, high speed internet, cable–you’re talking hundreds of dollars every month.  Since most everyone buys their home with a mortgage, perhaps all that extra money can go to pay your note down, or to buy a larger unit!

Not sure buying downtown is the way to go?  You can lease at The Kirkwood for as little as $900 per month.  A duplex in the junky parts of town rents almost that high!

Don’t let the myth that downtown is expensive fool you–it’s much more affordable than what people think while they BS around the water cooler.

Stay tuned for our next edition–Kids = suburbs!

 

 

 

What do you think?  Did I make a good point?  Would you like to find out more about some of these places?  Email me josh@downtowndesmoinesblog.com or our new realty expert, Brett Fine, “Your Downtown Realtor” brettfine@remax.net!