Its not so much that you ...

Sun, 01 Feb 2009 14:42:00 GMT

Its not so much that you will directly lose dollars .....its more of an issue that the property might lose value in the future due to
* sellers dropping prices to sell
* potential borrowers having difficulty buying due to tighter lending rules
* lenders not being intersted in lending on a property that is highly vacant

Is this a new unit purchased ...

Sun, 01 Feb 2009 06:41:00 GMT

Is this a new unit purchased directly from the builder, or is this a resale of an existing unit that may or may not have units still for sale from the builder.

If it's an resale of a unit in a building that no longer has units owned by the builder, there's less of a chance of losing value, but there is never any guarantee that the unit will lose value in the short term. Market conditions coupled with the number of foreclosures in a building may drive down values, at least in the short term.

If this is a new unit being purchased from the builder, how many units does the builder still own and how financially stable is the builder. The more units a builder is carrying in a development, coupled with financial instability can be a real recipe for disaster.

We have one project in Minneapolis where the builder has defaulted on the project with approximately 1/2 of the units sold. And a sub contractor had attached a lien on the project, which creates a 'cloud on title' which makes it difficult to sell units in the building. Plus the bankruptcy will most likely drive down the value of existing units as the bankruptcy trustee will be liquidating the units owned by the defunct builder.

Rely on the advice of a real estate agent with expertise not only in the area in which you are buying but also expertise in selling condominiums. Don't just rely on the sales agents for the project, their allegiance is skewed towards the developer.

Zillow Advice: Refinance - If I buy a new condo in a new developmnt, am I in danger of losing $ if the othr apts dont sale.

Its not so much that you ...

Is this a new unit purchased ...