Recall the days back in 2005, 2006 and 2007 when financing was given away, no questions asked? Verification of Employment and Verification of Income unheard of. And banks were offering 97 percent to home buyers? Well, as much as we all lamented the bubble bursting and values plunging, the shortage of inventory in South Florida has caused property values to once again experience a dramatic increase, and developers are banking on that.
MIDTOWN MIAMI, a new high-rise condo complex in Midtown Miami is boasting the return of 97 percent financing and offering its buyers a 3% down payment, through a low down payment loan program aimed at emerging neighborhoods. While financing is stricter than in the days of “no questions asked”, with values rising, and good collateral, buyers should have no problem securing loans. This means that a unit offered at $300,000.00 would only require a down payment of $9,000.00. First time home buyers, with limited cash, can enjoy these minimum down payment requirements and are now able to purchase a home with very little down whereas two or three years ago, this was not the case.
Recently, a report by TRULIA also proved that in this day and age, with interest rates at historical lows, “owning costs 44 percent less than renting”. Source: DSNews.com March 20, 2013. “After factoring all cost coponents including transaction costs, taxes, and opportunity costs, Trulia found buying a home is 44 percent cheaper than renting, down slightly from 46 percent last yer.” DSNews.com
People who didn’t buy a home last year may have missed the bottom of the market but they havent completely missed the boat” states Jed Kolko, Trulia’s chief economist. Source: DSNews.com
So we can once again boast in South Florida that property values have taken a turn for the better, and that financing for home buying is once again within reach. Obviously, it goes without saying to choose your real estate attorney, realtor and mortgage carefully. This one decision may mark the difference between closing and never getting to the closing table. Or worse, closing on a not so great a deal.
For all your real estate needs, call on us. Jacqueline A. Salcines, PA
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