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Should You Purchase an Older or Newer Condominium?

By Mike in Home Buying Tips with 0 Comments

In recent years, downtown San Diego condos for sale have become the jewels of the local housing market, which has been enjoying very healthy demand since March 2017. For the New Year, real estate analysts predict seller’s market conditions will prevail during the first quarter and prospective buyers will likely continue to explore condo listings in the downtown districts.

The nationwide trend of buyers gravitating toward new construction properties can also be observed in downtown San Diego. However, condo developers can hardly keep up with this demand. Prospective buyers who are not able to lock down a pre-construction condo should not feel discouraged. Instead, they should weigh the real merits of buying a new unit versus an older condo.

Financing Considerations

Condo projects under development are not as attractive to mortgage lenders as those that have already been completed and occupied, which is a matter of risk tolerance and mitigation. Even when developers have a proven track record of successfully completing their projects, mortgage underwriters are still reminded of the 2008 fall of Lehman Brothers, the Wall Street giant that spectacularly collapsed under the weight of investments made in residential construction projects. For this reason, many banks prefer to wait until a condo tower has sold 70 percent of its units before they start issuing mortgage loans.

Recently Completed Versus Pre-Construction

In downtown San Diego, almost-new condominiums are often better choices than pre-construction projects for buyers, particularly when the buildings have been occupied for a few years. Prospective buyers who intend to live in the building typically want to see condo amenities that have been used for a couple of years to assess how they have been holding up. There is also the issue of reviewing the financial statements of the homeowners association and the maintenance record of the building, which is something 92101 real estate agents handle for their clients.

Established Condos

To become a well-established condo building is the goal of all developers, and it should be a strong consideration for prospective buyers. Condo buildings with a high occupancy rate that have been around for a decade or longer tend to present a certain prestige, especially upscale towers that offer special perks such as concierge services and free broadband internet access. Established condos make it easier for real estate agents to showcase amenities and common areas that have been properly maintained over several years.

Future Projects

The next wave of condominium towers in downtown San Diego includes mixed-zoning projects where the ground level floors are used for commercial purposes, which means future condo owners will have easy access to shops, restaurants, pubs, and ATM banking. These projects may be worth the risk of putting down higher down payments and applying for bridge loans since this new urban lifestyle has proven to be very attractive in other metropolitan areas.

From East Village to Marina, San Diego condos are in high demand. Get in touch with the trusted agents at 92101 Urban Living to see the latest listings and start your search for the perfect condo. Give us a call today at 619-649-0368. ')}