Even in an economic slow-down, there’s pent-up demand within the segment of the market that comprised the buying population of yesteryear in the luxury Santa Monica condo market.
A majority of my business from ’04 through ’08 was made up of representing buyers and sellers in the $900,000 to $1.5M price range, mainly in Santa Monica. Many prospective buyers in this price range have discontinued their searches for many reasons:
1) Lost capital toward down payment in stock market investments (most likely where money was being socked away in anticipation of a real estate purchase),
2) In the old market, with secondary financing readily available, it was easy to get in with 10% down,
3) Now, with a 25-30% down payment requirement, many buyers who can easily carry the mortgage don’t have the $250,000-300,000 that’s now required. My clients are very smart people.
Here we are, in an economic crisis, and the luxury condo market in Santa Monica has gone from a full-force, open faucet pressure to a dried-up slow drip. The jumbo loan market is practically non-existent, with the few banks that offer them expecting no less than a 25-30% down payment.
A buyer can now buy brand new, gorgeous, high-end construction,
a north of Wilshire Santa Monica Condo
with better terms than ever before!
Here’s the deal:
- Only 10% down payment ($110,000)
- Buyer secures a conventional loan for $730,000 – right now, this loan can be obtained at 5% interest rate for 30 years-fixed!
- Seller provides secondary financing for the balance of the purchase price at a VERY favorable rate of 6-6.5%
Based on the current list price of this property, I can demonstrate at least 20% upside based on historical evidence (let’s not forget that the real estate market is cyclical). And that’s not all! The seller is offering a 6% Builder Incentive which the buyer can use any way they see fit
- take a 6% reduction off the price, or
- pay for closing costs, and/or
- structure an interest rate buy-down (my lender can explain how this works in detail…it’s brilliant!), and/or
- specify custom buildout
THIS IS A FANTASTIC DEAL!!!
Watch the video below and FALL IN LOVE with this property…
