Why Now Is The Right Time To Purchase a Unit in a New Condominium Building
Why Now Is The Right Time To Purchase a Unit in a New Condominium Building?
I’m not going to tell you what you already know about why you should buy real estate in the current market; interest rates are at historic lows, prices have decreased, etc.. What I will tell you is why this is the right time to purchase a unit in a new condominium building. What most people do not know is that it will most likely be a longtime before any more developments will be proposed. The reason being is that condo has become a bad word in the banking community. Lenders will not even consider funding a new condominium project. A big part of the reason is that homeowners are having more trouble getting loans. I keep seeing more rigid requirements that lenders are placing on the amount of sold and closed units in new developments. Just recently I heard from a couple of lenders that they will not make loans on condo buildings if more than 10 percent of the units are owned by the developer. Though these lenders might be misinterpreting FHA requirements, this interpretation has become commonplace in the industry.
Since it will be years before any new development will be proposed and built, the demand for the newer condo’s will far exceed the supply, which means prices will quickly increase.
So if you plan on moving into a condominium in the coming years now is the time to buy! BTW – there are still plenty of lenders lending on condominiums.
Now in full disclosure, there is a reason I am a subject matter expert when it comes to the condo market. I am one of the developer’s of a new condominium building, The Crescent in Clayton (www.thecrescentinclayton.com).
Sincerely,
Joshua Corson
UPPER END PROPERTIES
7803 Clayton Road
Clayton, MO 63117
314.616.9063
