Real estate is perhaps one of the most volatile markets there is, owing to constant change in the requirements of the buyer and dynamic nature of the demographic in a region in terms of age and financial capability. Some places will have a high number of people looking for homes while others have a large number of homes looking for a new owner.
A Little Background
You will certainly remember the 2008 real estate bust that turned the real estate market upside down in a matter of days. The price of real estate plummeted and impacted almost everyone in the U.S. But a certain sector of the real estate market was affected more than others-condominium units or more popularly, ‘condos’. Getting the FHA approval became difficult
for the condos which meant that the bank would not provide loans to buyers for most of them as very few (14,000 out of 152,000) were FHA approved. Those were hard to find thanks to the lack of exposure and this created problems. But the situation has changed for the better as far as the condos are concerned. Let me answer the question: why condominium units are easier to sell now as compared to earlier? Not to mention Executive Condominium units in Singapore like Rivercove Residences at Anchorvale Lane.
The Helping Hand of Technology
There are many factors that have contributed to this change. First is the advent of technology and social media that has opened up a lot of marketing avenues for the sale of condos. Facebook allows you to target the key demographics which are suitable for condos, offering a tremendous increase in visibility and YouTube allows them to have a tour of your condo, through a video you filmed, from anywhere. All this was not possible with print advertising in newspapers. There are also many websites that will list your condos if they are available and that attracts a lot of audiences and creates awareness.
Law Makers Coming to The Rescue
One of the major changes though are the ones in the legislation related to the condos which will completely change the game in the coming years for the condominium units. Firstly, the investor ratios, that is the ratio between owned property and rented property, have been relaxed which makes more condos eligible for a typical mortgage than there were before. This will result in more condos getting sold instead of getting rented and make a
great impact in some regions. Another major change is the approval of commercial buildings or units as a part of condos that will allow for more buildings to be approved for a mortgage which is great from an owner’s perspective. Finally, there is also a change in the transfer fee for the condo which is a positive sign for the owners.
Now, individually these changes might seem trivial but collectively they can change the game for the condominium owners and revive the market for them again. We have to admit though, that banks are still wary of condos but that picture is hopefully going to change as a result of these changes and people owning condominium units are going to have good times ahead of them.