Oceanfront Condos ~ developers increase incentives
A slower condominium market has oceanfront condo developers offering some big savings - such as covering the cost of owning for two years or cutting payment costs by lowering interest rates.
Buyers at Calypso Keyes in North Myrtle Beach, a new 14-story oceanfront resort, can get their mortgage and homeowners association fees paid for through a two-year “developer leaseback” program.
• Developer Keye Communities will lease the unit from the owner, paying the mortgage and HOA fees for two years and earning any rental income the unit makes - unless that rental income outweighs the payments and then the profit goes to the owner.
• Since the building won’t be built for a year and a half, buyers basically have “no cost on the investment for three and a half years,” said Russ Baltzer, a partner in Keye Communities.
• The leaseback is only offered at a special event on Sept. 30 for 35 units. Developers say they have sold more than half of the 109 units in the building.
The developer of conversion Coral Beach Resort, 1105 S. Ocean Blvd., is offering a “buy-down” with a 4.875 interest rate for a 30-year term with Investor’s Mortgage Company.
• The company will lend up to 90 percent of the purchase price. The interest rate is fixed for the first three years.
Developers at the oceanfront Tides and Driftwood buildings, which is part of the Sea Mist redevelopment in Myrtle Beach, are offering a similar 4.875 percent financing through Investor’s Mortgage on a 30-year term with the first three years interest rate fixed.
• The mortgage company will lend up to 90 percent of the purchase price, which means a 10 percent down payment.
• With the buy down, investors are paying a lower rate than the national average 5.93 percent for a primary residence mortgage, he said.
Bottom line, total out of pocket costs are minimized with a below market interest rate with actual costs predictable for the first three years. This takes a lot of the uncertainty out of the equation that a buyer typically sees with an adjustable rate program.
Source: Jenny Burns, The Sun News, Myrtle Beach
For more information on Oceancront buyer incentives, contact Barbara Chartier at 843-902-0204.
