red_lantern wrote:Look at all thse people buying pre-sale, well here's the ugly truth people:
30% will cancel within 7 days (just look at what happend to the villlage)
20% will not be able to move in because they don't like something or find out they are too close to the ghosts or something.
50% are going to rent it out and find the rents theycharge won't attract any renters so they will either have to lower the rent or be forced to sell but....when they sell they won't make a profit cause property value wlll be less than wht they bought it for.
Sorry for the typos damn keyboard..made in china!
What about the buyers who can't close because their bank won't lend them the money unless they increase their down payment because values have fallen and they don't have the money?
Let me give you an example.
Freako buys the penthouse condo for $1,000,000 and has a 20% deposit. When it comes time to close, the bank says the property is only worth $800,000 and the maximum loan they will give is $640,000 or 80%. Freako still has to pay $1,000,000 to the developer but the bank will only give him $640,000. He now needs a down payment of $360,000 which means he has to increase his deposit from $200,000 to $360,000. But he doesn't have the money. What to do?
I have seen this happen before.