Better to have Loved a Loft, than to Never Have a Loft at All

by Jonathan Haeber
CMR Columnist

The mortgage lexicon for metro areas has a word that's quickly gaining the attention of home buyers everywhere. Lofts used to be considered a second-rate living arrangement for artists and low-income city dwellers. Now, developers see a new market in these live/work units.

The national average sales price for a loft eludes this writer, but here's something that will surprise you: The average loft in Manhattan sold for 1.7 million dollars (2Q, 2005). That's over 200,000 more than the average condo and 400,000 more than the average sales price for all living units in Manhattan.

Certainly, lofts come at a premium. The reason? Lofts have the benefit of large windows with open vistas of the city skyline, more square footage, sturdy construction (often fire-resistant), and -- let's not forget -- style. "Such is the demand for these spaces among the well-off," says Wikipedia, "real estate developers have taken to creating ready-made 'lofts' in urban areas"

Lofts Cost a Lot, but are Affordable at Current Mortgage Rates

Though lofts are the staple of the bohemian upper-class, anyone with a decent income can get in on purchasing a loft with mortgage rates as they are. Before you decide to buy a loft, consider the following:

Lofts are often located in "brownfield," or industrial urban neighborhoods, which often means a higher crime rate, and potential noise from surrounding industry
If you plan on purchasing a loft, make sure that all of the proper permits have been applied for and obtained. Some lofts may be operating at a 'less than legal' fire code or construction permit status.
Live/work units are a popular style of loft, but be wary. If you decide to purchase a live/work loft, you may be sharing walls with an operating business or industry, which comes fraught with its own inconveniences.

Whatever type of home you decide to purchase with your mortgage, proper research and preparation will always be in your own best interest.

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