After reducing prices by up 29.5% for their four week “Economic Stimulus Sale,” Cubix managed to put another seven condos into contract.
With around 24 of their 98 units either closed or in contract prior to the sale, we’ll now call Cubix 32% “sold” or roughly 18 contracts away from their stated Stimulus Sale goal of 50% (in order to open up the doors to FHA financing).
In related news, Cubix has started offering “lease-to-own” deals, purchase contracts which can either be executed or cancelled at anytime during a 3, 6, 9, or 12 month lease.
∙ Cubix (766 Harrison) Officially Cuts “Up To 29.5%” For Stimulus Sale [SocketSite]
“lease to own” seems to blur the distinction between owning and renting. I wonder how this affects the lender’s view of owner occupancy. It would seem that the only reasonable way to analyze this situation would be to treat lessors as renters.
These units are headed to the rental market…
So if a 29.5% price reduction results in 32% being sold, then a 92% price reduction ought to sell them all out!
Seriously, though, the FHA stuff is a disaster waiting to happen. It’s the new subprime. Bad credit, no reserves, and 3% down = mortgage. Why the hell does this go on? Have we learned nothing?
These tiny little spaces still need to be reduced to make sense to me. Concrete walls and floors, miniscule kitchen, right on the edge of the freeway.
With so much Soma lofts coming up on the market with reduced prices, why would anyone go for these tiny little places. Sure, if you just need a pied a terre to crash on weekends, then this may makes sense….But still, I would just wait. There will be better deals coming up towards middle – end of the year.
They seem like a great opportunity to me…… Single, first time buyers looking for a killer location and an affordable mortgage will find it here