During the boom years, low mortgage rates had buyers borrowing as much as they could and spending as little as possible of their own money. After all, if you could take a loan at 4 percent, then invest your savings to return a reliable 8 percent a year, why not? Those “reliable” investments are few and far between these days, and a rising number of well-off buyers are taking an opposite approach: forgoing mortgages altogether. One Upper West Side Manhattan co-op says it has approved three all-cash applications in three months. “We’re not the kind of building that attracts the rich,” says one board member. “This is a dramatically different pattern.” Not only is it easier, faster but it’s likely to be cheaper by getting buyers significant purchase price discount.
By S. Jhoanna Robledo, July 2, 2009 NY Magazine

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