As we all know the economy is in the tank. The housing sector is suffering from never before seen loses. The pain is not spread evenly throughout the countries estate markets. Your more cities have not taken more of a hit in pricing compared to some cities with loans. This property crisis has presented opportunities. If you are a cash buyer Without needing to find a mortgage can purchase condo or a house there are a few conditions that ONLY you get a discount that is larger than a purchaser who wants a mortgage and can take advantage of. Allow me to explain in detail how to buy one of those condos either as your actual home or an investment.
Condominium buildings were built in The six year property boom. Shareholders bought A number of these condos before construction was finished. A number of those investors were buying these condos with funding, meaning no deposit, or the option ARM mortgage that have reset to higher rates of interest was being used by them. A whole lot of these condos are worth less than what the owners paid. As you may have heard about the news Lot of those shareholders giving them back and are walking away from their condos. The lender ends up owning the condominium when this occurs. A period is between the time stop paying the mortgage AND the HOA fees and an owner/investors decides to give up the condo. Several months go by with the HOA not collecting this HOA payment that is owners. In lots of these condominium buildings investors ceased paying their HOA fees. These non-payments have resulted an overall proportion of HOA delinquencies that creditors will loan on the building. Once the delinquency rate is over that nobody can find a mortgage, the default rate that lenders will allow is 15%.
This creates an exceptional Chance for the cash buyer as you have competition. Because buyers can purchase in the construction prices fall even further, increasing the chance for the cash buyer. If you are a cash buyer ask your Realtor to concentrate on ang mo kio new condo buildings developed in the last couple of years that had a large proportion of investors as buyers that are . These will have. In case the building includes a very low owner occupancy percentage, Odds of not against buyers is. Banks would not lend on construction with less than 50% owner occupancy. This could be keeping buyers away because of issues if investors still own a great deal of units in the building.