Atlanta Apartments | Avoiding the Same Mistakes as Big Business
Apartment hunting is a sport and a business. Just like anything else that is worthwhile, it takes hard work, determination and a fair share of luck to secure the apartment of your dreams. For many businesses, the recent economic collapse has been a wake up call. Too many people overextended their resources and have now fallen into debt. Be sure to consider these pitfalls when searching for your new apartments. It could be the difference between feeling settled and feeling scared.
Georgia-based banks lost $1.2 billion in the first quarter as the recession deepened and the troubled real estate market deteriorated even further.
While much of the loss was tied to the performance of the stateâ''s largest banks, SunTrust and Synovus, nearly half the stateâ''s banks lost money during the first three months of the year, according to data released Wednesday by federal regulators.
Metro Atlanta banks are having more trouble than their peers across the state. Only one of the top 25-earning banks in Georgia is headquartered in the region: Cornerstone Bank, a small lender based in Atlanta. Experts say thatâ''s because many Atlanta banks bet heavily on the areaâ''s real estate market, which is suffering through a historic downturn.
Prodded by accountants and regulators, banks are aggressively building up their reserves to cover potential loan losses â''- a move that comes at the expense of earnings, said John Kline, a bank analyst based in Decatur. Banks â'œare being more cautious and putting earnings aside,â'? he said.
The FDIC numbers provided plenty of grim news for Georgia banks. Problem loans at the stateâ''s banks nearly doubled over the past year to $10.2 billion. The percentage of noncurrent loans to total loans has nearly doubled to 4.77 percent.
On the positive side: Loan volume is holding steady, while deposits are growing as customers look for safe places to stash their money. And 55 percent of banks were profitable in the quarter, up from 38 percent in the fourth quarter. The stateâ''s most profitable banks are located in small cities and towns like Colquitt, Fitzgerald and Hinesville, areas that didnâ''t experience a big run-up in real estate values.
But the profits pale in comparison to that earned by banks during the boom years in the middle of the decade. Northwest Georgia Bank in Ringgold earned $1.4 million in the first quarter, good enough to rank No. 4 in the state. Three years ago, a $1.4 million profit wouldnâ''t have ranked among the stateâ''s top 50 banks.
Northwest Georgiaâ''s chairman and CEO, Wes Smith, said his bank is succeeding in part because the bank didnâ''t lose its head during the real estate bubble. While competitors were offering developers 100 percent financing, Smith said his bank capped its lending at 75 percent, ensuring borrowers had enough skin in the game.
So there you have it, warning signs have been planted. If you are planning to move to Atlanta, do your homework, and be sure to work with a trusted apartment service. It's the only way to move.
About the Author:
Michael Russell writes about a variety of subjects. This article discusses Atlanta apartments. For more information, visit Promove.