Are free cars with condo purchases a form of mortgage fraud?


In the past, I've written that the "free car with condo purchase" deals are a gimmick: There's no free lunch and if a condo comes with a free car, you'll pay more for it than you would have paid without the car. Otherwise, they wouldn't include the car.

But there's one important difference: These "Free x with the purchase of a home" deals allow buyers to basically roll the cost of a luxury item into the price of a home. And we're not just talking about Pintos.

CNN reports that "High-end shoppers will find luxury properties like the South of Fifth development in South Beach, Florida, which offered a free Lamborghini worth $260,000 when buyers purchased one of the multimillion-dollar properties."