Reply To: Why are the builders still in denial?



This something that I have discussed with a number of developers and mant are in a catch 22 position

They have mortgages on propertues based on the old valuations and they cannot sell at a low prices as they do not have enough money to discharge the existing mortgages

From the assett perspective the properties are still on their books at the old proces making the company look financially healthy and the mortgage payments are reducing

Often they simply don´t bother to pay the community fees anyway so it can be better to laeve the properties empty and unsold