Wednesday, 03 April 2024
By Leahs Mortgages
Leah Zlatkin Quoted in the Globe and Mail: “For real estate preconstruction buyers, a hard truth”
Leah Zlatkin, mortgage broker with Mortgage Outlet, says investors who buy condos with the intention of selling in the assignment market typically ensure that a clause in the contract allows them to do so. Many exit before the building is complete.
She’s seeing an influx of buyers who intended to live in the unit but now find the appraised value is coming up short.
“The real risk is in trying to close,” she says. “The unexpected has come up – and that is that your property is not worth what you paid for it.”
She recommends those clients tap into savings to provide a larger down payment if they can. If not, she advises them to borrow from a family member. The third option is to try to sell on assignment and the last resort is to secure financing from a private lender.
