- 17% in the County of Santa Clara,
- 25% Contra Costa County.
Over 20% of all purchases are all cash, with no loan involved.
In fact, an interesting phenomenon occurs in some depressed areas:
in some condominium complexes, where over 15% of the units are delinquent, (typical) banks will not lend… So this leaves only cash buyers as potential buyers of these properties. Obviously these buyers purchase the units for the long term, hoping that the real estate market will improve enough that the complex will go up in value. The rents have increased so much in the past 2 years that the return on investment makes it a very viable deal.
An other problem can occur there though: if more than 50% of the units in a complex are non owner-occupied, loan are also almost impossible to obtain - or more expensive. One of the rules of most lenders is that this important percentage has to be over 50%. So that would leave future buyers and future homeowners in those complexes with a difficult situation: potential buyers who need a loan may not want to pay the extra fees and rates in order to get these loans.
Do not underestimate the need for good advice when you purchase a condominium. A seasoned agent is a must, to make sure you are informed. Here is a good informational page on this "condominium"subject.
Thanks for reading.
Francis
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