Low deposit dwellings
A trap for home buyers? NIBR Report 2009:7
Four per cent of the residents in low deposit cooperative dwellings built in the period 2004-2008 defaulted during 2008 on jointly held loan repayments. Anticipated drop in interest rates in 2009 will reduce future payment problems while increased unemployment will do the opposite. We were unable to say conclusively that the sale price of new low deposit dwellings was higher than other comparable housing. We can rather not say low deposit housing obtains lower prices in the market for existing dwellings compared with similar dwellings. The supply of low deposit cooperative dwellings seems to be on the decline.