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Trouble for Some Presale Units Bought At The Peak of The Market

Blog by Ian Watt | December 2nd, 2009

Vancouver Condo Real Estate Video Blog #457 - December 3, 2009

Trouble for Some Presale Units Bought At The Peak of The Market 

Ian Watt video blogs about how some Vancouver condo units purchased at the peak of the market, which are just coming to completion, have had a tough time getting financing because the purchase price is much higher than the appraised value.  In order to get financing some purchasers have had to take out lines of credit to make up the differences. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs.

Ian Watt: Hi Good Afternoon, It's Ian Watt in Downtown Vancouver. Just on the other side of the Cambie bridge. Just around first avenue by the police station. There's a new building that was pre-sold at the peak of the market a couple of years ago. It's very interesting all the properties recently completed but I know some people who bought in there, not with us but with other realtors and in order for them to complete on it. They have to take out a line and credit because the appraisal value of the property didn't appraise out. Either there's no way they were gonna get a financing for a six hundred thousand dollar one bedroom. It just wasn't gonna happen, so a lot of people had to take out lines of credit and do the financing based on the appraisal value of say five hundred thousand dollars. That is a very interesting situation. Thank goodness the market did correct or couldn't been allow worst than that and it 'll be interesting to see what happens in some future developments that were also bar around that time that have yet to complete. My name is Ian Watt ans if you have any questions about this situation. You can always email me at  ianwatt@ianwatt.ca. Thank you very much and have a great day!