16 Dec 2007 1:51 PM:
Hi all,
I've read many interesting posts on this forum concerning the Santa Ana del Monte development and feel that its worth adding to the debate based on my own experiences.
I have also reserved a plot on SA, Jumilla, for investment reasons, with the main driving force being what I call "scarcity value". Jumilla is a wine producing region, meaning that locals' livelihoods are in the vineyards. This means that large developments such as SA are not going to appear in quick successon as this would mark a quick end to the town's indigenous industry and thus mass unemployment. By limiting the number of developments in an area, you are shortening supply and thus increasing attractiveness, meaning that the guaranteed rental scheme has more chance of working as compared to coastal resorts flooded with complexes. Combining this with the new transport links that are in plan for Jumilla, this is an added attraction to the scarcity value already described.
The new transport links are interesting as this is also invesment, albeit on a governmental level. Governments only invest in projects if they see value with potential for ROI. Therefore, those investing in SA are putting their eggs in the same basket as the Spanish government, who themselves will not have made a rash decision to invest in a new railway / airport.
So, the points I have just described should act as a reassurance for the rental scheme. I would be grateful to hear others' thoughts and engage in some constructive debate on this.
Another point which has come up on other threads concerns the bank guarantee. For everyones reference, I have been emailed a copy of the bank guarantee from a "Sociedad de Guarantia Reciproca de la Cominidad Valencia"
Kamil
Forum thread:
New investestment in Murcia
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