Atlanta Condos Guaranteed To Hold Value
March 25, 2009 by admin
Filed under Real Estate Articles
Easing Buyer Fears, Developer Unveils Cousins Assurance Program
Aaron of Atlanta MLS Search turned me onto this story:
Cousins Properties Guarantees Buyers Equity for 3 years, Provides Financing Options
Cousins Assurance Program to assume most risks for qualified condominium buyers.
The Cousins Assurance Program includes several options for buyers to purchase a condominium at 10 Terminus in Atlanta, without assuming the risk of falling home values. In addition, Cousins will provide financing for the purchase during the first three years of ownership.
“It’s not surprising that people aren’t buying condos right now – even when they see a quality luxury property like 10 Terminus,” said Cousins CEO Tom Bell. “They’ve seen their stock portfolios fall drastically. They’ve seen banks take over entire condo buildings. They’ve seen condos auctioned off for a fraction of their value.”
Here’s how the Cousins Assurance Program works:
• Because Cousins owns 10 Terminus free and clear, the company will guarantee the equity in a buyer’s condo for the first three years of ownership
• While banks require down payments of more than 20 percent on jumbo loans, Cousins will finance the condo with an initial 5 percent down payment
• While banks offer interest rates between 6 percent and 7 percent, Cousins will finance the condo for a 4 percent interest rate
• Because it’s difficult to sell homes, Cousins will offer homeowners the opportunity to move in immediately with 20 percent down and no payments for a year while they sell their current homes.
Cousins Properties is the first developer in the U.S. to guarantee a condo buyer’s equity for three years while providing a financing option with a low down payment and a low interest rate. While it has become commonplace for developers to place a block of unsold condos up for auction or to drastically reduce prices, Cousins has resisted both approaches – which bring down the overall value of the condominium.
“Simply discounting the product doesn’t help,” Bell said. “If you discount 15 percent, the buyer will wait for you to discount 30 percent. Some buyers are trying to time the bottom of the market and I don’t want to chase that ball downhill. We believe in the quality of 10 Terminus and have resisted lowering its market value.”
The Cousins Assurance Program is an innovate approach that differs significantly from lease-to-own programs. With the Cousins Assurance Program, buyers enjoy the full tax benefits of owning their homes from the start. And buyers can leave the condo in the first three years without facing foreclosure and negatively impacting their credit reports.
To better understand how the program works, buyers are encouraged to visit www.10Terminus.com to learn about the program details and use an online calculator that compares the Cousins Assurance Program to conventional mortgage financing options.
10 Terminus is a 32-story luxury condominium tower that opened in Buckhead in the fall of 2008. Condominiums start at $300,000 and rise to $3.5 million for the top-floor penthouse featuring a 4,000-square-foot rooftop deck. Average unit prices range between $600,000 and $800,000.
The condo tower is one of three buildings
