Buyers who would normally have difficult coming up with a 50 percent deposit for a new condominium can now take advantage of lower deposit requirements at three new developments in South Florida.
According to The Daily Business Review, three new developments are lowering their deposit requirements: Aria and Canvas in Miami and Riva in Ft. Lauderdale are all only requiring a 20 percent deposit to purchase a unit. Riva previously required a 35 percent deposit, while Aria and Canvas required 50 percent.
Some speculate that this is indicative of a supply-heavy market. Following the recession, the demand for luxury condos from wealthy, international buyers seeking to protect their assets in American real estate was high; however, that demand has cooled off, and now developers are courting domestic buyers with lower deposit requirements.
The developers cite different reasons for lower their deposits – in fact, NR Investments, the developer of Canvas, says that Canvas was originally geared toward domestic buyers looking for a primary or secondary home. Fannie Mae has also granted conditional approval to Canvas that gives domestic buyers access to home financing – up to 97 percent for a primary home and up to 75 percent on a second home.
At Aria, Cervera Real Estate is allowing buyers to put down 20 percent to buy, and then spacing out payments to equal a 50 deposit over two years while the building is completed. For many buyers, this is much more feasible than coming up with 50 percent upfront.
New developments are also offering extra amenities to attract buyers, including multiple pools, party and exercise areas, spas, restaurants, and bars.
Bill Sklar, a West Palm real estate attorney and University of Miami School of Law professor, says that while current demand is lower than previous years, it’s not comparable to the market crash in 2007 and 2008, and that offering extra incentives to buy is not out of the ordinary.
Picture Credit: {{Information |Description=AIMCO’s Flamingo South Beach Apartment Community buildings |Source={{own}} |Date=3/1/10 |Author= Architecturist |Permission={{all}} |other_versions= }}
