So would you walk on your contract?

rent. keep money in cash/tips - buy for half in two years without a mortgage.

Get the money back... I can't imagine that you won't be able to buy ANY apartment at a discount to the price a few months back...

If your a european or a brit, it would be very hard not to walk away due to currency

RUN!
You obviously love the place and I guarantee that if you walk away now with your cash in hand the apartment will be there 6 months from now and if you want to purchase it then then go right ahead (probably cheaper too). The odds of someone coming in to buy it are very slim and like nyc10022 said the supply is coming. Soon you will have the pick of any apartment you could possibly want and for a lot less money. Plus, new developments have been horrible - especially those recently finishing up. Better off buying prewar and renovating.

"Soon you will have the pick of any apartment you could possibly want and for a lot less money."

You people are truly delusional

tg007:

What does "contract signature from market volatility" mean?

Thanks.

sorry I meant " mercifully protected from market volatility since signature of contract"

Don't mean to sound dumb, but I don't know what that phrase means either. Does it mean you had a contingency clause that the contract was subject to your being able to sell your existing apartment - or your being able to get a mortgage? I'm not real expert as regards contracts - so if there is something else I should know about contract clauses, I'd be happy to learn about it.

Topper--I think he's saying the $15K has been preserved because it's been sitting in escrow, not in securities or other tanking investments...

hey Juiceman please explain how that is such a delusional statement?

Thanks Bramstar, that's what I meant. except 15% not 15K.

Rent for sure. Or buy and lose value. Easy choice.

tg007 - what did you mean about the developer maybe being open to negotiation? I agree with everyone that says backing out is better, but that math may change if you get a significant enough reduction (assuming you love the place, which it sounds like you do). In other words, the benefit of waiting is to get a much better price. But if you are somehow able to get that better price now, why wait?

Probably a long shot unless the developer is really desperate, but may be worth trying.

((Thanks Bramstar, that's what I meant. except 15% not 15K.))

Right... brain-fart on my part.

If you love the apartment, play hardball with the developer to get him to dramatically lower the price. Odds are, he know far better than you do how bad the market is going to be for the next several years. Tell him to take at least 30% off and that he has to pay all closing costs and transfer fees and you will go through with the deal. If he plays like he won't budge, kill the deal, you will find more selection at a cheaper price for the next several years.

Developers are sharks. mh23, I don't know you, I don't know tg007, I don't know the developer
but please, 30% off, have you ever successfully negotiated anything in your life? Have you ever understood a market?

They may be sharks, but they also DEPEND on selling those units. You, on the other hand, do not depend on it. They know that they have to get those sales. I'm not sure about 30%, but I would definitely renegotiate.

hacha, you may be right, BUT, if tg007 is prepared to walk (i.e. it's a very credible threat), why not try? The worst that happens is the developer says no and tg007 walks, which he/she was about to do anyway.

if you want to negotiate be reasonable. Asking for 30% off is just ridiculous. I think you can probably get a great deal now, but don't expect someone to sell you a unit for at or less than their cost.

In a market with almost no buyers, why is asking for 30% off an asking price (that may bear no relation to what buyers are willing to pay) ridiculous?

And, why shouldn't one expect to buy something at or below a seller's cost if that cost is more than what someone would be willing to pay today and the seller wants or needs to sell?

I'm in a similar situation as tg007. what is the process for backing out of contract after the TCO deadline? do you need to inform the developer with some kind of legal letter or do you simply have the right to ask for your deposit back? and what if the developer refuses to refund your deposit-what do you do?

Juiceman -- exactly who is the delusional one? You think prices AREN'T going to plunge when we're abrutly changing from the strongest real estate market in the last 80 yrs to the WORST overall economy in the last 80 yrs.

What, exactly, are you saying, OJ?

I think he meant that it is delusional to think that one will have the pick of "any apartment you could possibly want".
Just because the market is going down doesn't mean everyone who owns is going to sell. How could someone get the pick of any apt they could possibly want? That seems a little far fetched.

Admiral, no need to refer to me as OJ. I'm not related, I like my wife, and I haven't robbed any football card collectors in the last couple weeks.

Sizzlack nailed it, that is exactly what I meant.