Most Post-2006 Condo Buyers Are Underwater?
In an article describing how co-ops are much better positioned for the downturn because, unlike condos, their position in foreclosure proceedings is senior to the bank, comes this doozy of a quote from the president of a property management company in Manhattan: I think it’s safe to say that the value of any apartment purchased…
In an article describing how co-ops are much better positioned for the downturn because, unlike condos, their position in foreclosure proceedings is senior to the bank, comes this doozy of a quote from the president of a property management company in Manhattan:
I think it’s safe to say that the value of any apartment purchased in the last two years is less than its purchase price. The simple calculation is that if you bought an apartment a year ago and financed 90 percent of the purchase price, as many did, and now it’s worth 20 percent less, you’re upside-down as an owner.
That’s another reason why co-ops are in better shape: Most owners had to put down a minimum of 20 percent when they bought.
The Downside for Condos in a Downturn [NY Times]
Feb. 9 (Bloomberg) — U.S. home prices will reach bottom by
the end of the year, concluding a slide that will have cut values 36 percent, Moody’s Economy.com said today.
“Notwithstanding the intensifying economic gloom, the
bottom of the housing downturn is within sight,†chief economist Mark Zandi said in a statement today.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJTtcFir47.E&refer=home
cw, don’t listen to the naysayers. You can definitely get a mortgage with 10 percent down. You may (or may not) have a problem getting private mortgage insurance with only 10 percent down. If you can’t get it, the bank won’t give you the mortgage. My mortgage broker says it’s totally unpredictable. Solution: Make sure you have a good independent lawyer and get a mortgage and a PMI contingency in any contract you sign.
Also, it’s always been the case that it’s hard to find coops that take less than 20 percent down, although they do exist. And new coops or new condos are looking risky now. You can put as much or as little down on a condo or house as the bank will loan you.
The only coops that I have ever heard of that were even close to foreclosure may have been when the sponsor defaulted (and that was back in the last down-turn when there were so many investors who bought rental buildings and converted them). It would take a weird situation for it to happen…
No fight Dave.
This new squattersrights poster is a real a-hole.
One of his best quotes so far:
“Atlantic Mall Target = Brownstoner’s Flea”
Not someone I plan to fight with. It’s like fighting with Cornerbodega or Hannible.
I’ve been to Buenos Aires 3 times in the past 2 years. Each time for at least 2 weeks. Please don’t tell me what I do and do not know about. I’m in the process of looking to buy a small apartment there and will be living there for a couple weeks each summer running a small music festival.
The only thing I said about Buenos Aires is that it has great energy. And that I love it. I never said it was perfect.
I feel a good fight coming on.
11217 what do you know about Buenos Aires?–I lived there for 4 years and still have close friends there and can tell you it MUCH more provincial than NYC–and many other European cities for that matter. Please, just because it’s the IT city right among the New York Magazine crowd with ad-nauseum glossy spreads in Travel and Leisure and Conde Nast Traveler doesn’t give it that “buzz” you reference.
I’ve never dated an Aryan in my life. 🙂
[rim shot]