History of Lennar:
In 2007 and 2008, Lennar Corporation was affected by the crisis of the U.S. housing market, and its CEO has indicated that the construction industry needs government help to stabilize and recover the housing market and that 32% of people who signed contracts for new homes have backed out of them The housing slump also appears to be causing delays on one of the company's largest project, the Orange County Great Park, due to slower sales of houses.
In 2007, Lennar posted heavy quarter losses. In 2008, against Wall Street expectations, Lennar has again posted losses, although smaller ones, and its total revenue has slipped 61%.
For the third quarter of 2008 Lennar reported losses for the sixth consecutive quarter, to a total loss of $2.4 billion since 2006.
Why DON'T BUY Lennar at Fryar's Gate, Cary, NC:
This is a new community that is coming up near Green Hope Church Road. Lennar is notorious from the very beginning to create an unnecessary "hype" in the market and creating an "artificial demand" among home buyers. Buyers from different parts of the country moving in to the new locations doesn't know the market trend and falls into the trap.
The same strategy of creating "artificial demand" was done in Fryar's Gate Community in Cary. They don't release all the lots and advertises the buyers that they are doing a 'Lottery' system for the "chosen" customers. Having a Lottery picking is unlawful in the first place. Their second strategy is doing a secret bidding. The idea behind this is to know the pulse of the buyers and increase the home prices for the ones that has more demand. It is not a good way of doing business
These are some of the reasons for not buying a house in Lennar at Fryar's Gate, Cary, NC:
1) The current demand in the housing market place is because of the surge of Investors. This surge is due to a lower interest rate. But the interest rate is skyrocketing now (it was 3.35% in Feb, 2013 for 30 year loan which increased to 4.7% for the same in Aug, 2013. Because of the increase in interest rate, the investors is in the phase of backing out. It is estimated by Finance experts that if the interest rate for mortgage doesn't fall by October, the investors will discontinue investing in Housing market.
2) The housing market demand that we are seeing now is a "bubble". It is supposed to blow by December, 2013. So if you are buying a house now, you would be looking at a highest interest rate in the year 2013 because you will be settling the bank loan by Nov-Dec timeframe. (The ideal time would have been Feb, 2013. But past is past, we cant go back). Experts suggest to wait till the first quarter of 2014, before investing into the housing market.
3) The schools near the location of Fryar's Gate is OK now. But, the Wake County Public School System changes the allocation every year based on demand. Since there are already other new communities very near to Green Hope Church Road (eg. Pulte Homes etc), the allocation for schools is sure to change for 2014. This means that the current advertised allocated schools by Lennar may change. So buying at Fryars Gate based on the schools is not a wise decision.
4) More houses are coming in Cary area by end of August - MI Homes, Cedar Bend etc.
5) Lennar is not a trusted company, especially in their downfall as seen from their history (verify in Wikipedia). To validate this, type "I hate lennar homes" in google and read the first 4-5 links.
It's upto the buyers to make a wise decision now!!
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