CONTRACTS

Hi There

My friend bought two Azucena's through an agent on a low deposit of 15% with the balance on completion. I am considering buying 3 units myself for investment. Has anyone bought direct from the builder or another agent at a lower deposit? Also if anyone can give me any feedback or advice about the resort it would be greatly appreciated.

Best regards to all!

Mike

Hi Mike,

I know of purchasing at a low deposit and the Azucena could be bought at between 15% and 50% deposit depending on agents. Unfortunately this was back in the days when the project was new to the market and I believe you will not be able to purchase at 15% deposit now. I know San Jose were selling Azucenas fully ready for rental i.e. including furniture, white goods, air con, jacuzzi bath.........for €150,000 with a 15% deposit but this was well over 12 months ago for investors and you had to have purchased previously. Have you spoke to your friend's agent?

On the investment side then buying 3 units then I would be cautious if you are investing on a short term basis. If you need to rent out all these units to cover any payments still remaining then be realistic as the site will still be under construction. 

If you are interested in a discounted Azucena then I have the property advertised on this site or if you need any information I can send via email if you forward me a PM with your email address.

Cheers

Steve H

Hi Steve

Many thanks for your reply. I have been looking all over the internet and have spoken with various companies, but the original one i spoke to and that my friend bought through is offering by far the best deal. they are called Solseeker Properties and they have Azucenas and Tulipans on a 15% deposit and will offer discounts for multi buyers. They come accross as a  very professional outfit and have advised on getting interest only mortgages on the units to keep the cost down until you get your rentals established. I think i will buy 4 Azucenas at the low deposit. How much deposit would it be to buy your place?

Is anyone aware of any rental companies looking to take on houses in Jumilla?

Thanks

Mike

Hi Mike,

I am unable to comment on the agency you refer to as I have had no dealings or know of anyone who has. I have a few questions regarding your last post below and additional comments that you may find useful-

1. What timescale does your agency advise on getting the properties established in the rental market?
2. Do their mortgage deals account for Euro interest rate rises or are they fixed?
3. Do their forecasts include you furnishing 4 x properties to a high rental standard, any extras before completion on the properties, running costs, management costs, taxes, IVA and solicitor/notary fees?
4. What is your expected rental income annually for the first 5 years?
5. Are you looking to buy on the 1st or 2nd phase (2007) or looking to complete on later phases (2008 to 2009+)?

As an example and from the rough calculations then if you were to buy 4 x Azucena properties at the current rate of €129,000 due in phase 1 or 2 and if the agency gave you half of their commission (assume they get 10%) as a discount from each unit (extremely generous) you be looking to pay IVA and necessary fees before any rental income of between 10% to 11% (€51,600 and €56,760). This assumes you declare and register the properties at the price of €129,00 and not their actual valuation. On top of a deposit of €73,530 including discount you would then be looking to pay for all facility connection charges, insurance, furnishings including white goods, management/rental and community upkeep fees at an approx fee of between €25,000 - €40,000. So the initial total outlay before any rental income would be a minimum of €150,130 (IVA/fees + initial 15% + minimum cost to prepare unit to rent) which roughly equates to 29% of the initial cost of 4 x units at €129,000 each. This does not include any extras needed to be added to the property prior to completion i.e. air-con, heating, additional sockets/switches and in reality would be a bit higher as my calculations are at the minimum costings.

So although you may be able to purchase a unit at 15% deposit then the true cost before any rental income is in fact much higher. Does this tie up with your calculations/business plan?

These calculations would increase if the properties were in phase 3 as for the Azucena’s they are now €132,000 per unit.

There are already property management companies/key services set up and I have rental sites which will advertise properties at Jumilla. Will not mention any names but details can be found on previous posts/forums. If you need additional information I can PM the detail.

Hope this is of some use and to answer your question on my initial deposit then I am looking for a deposit which equates to approx 40% of the current price (€129,000) but I can split in to two payments of 20%.

All the best,

Steve H

have only just joined this site, so this message may be too late for you - but I thought I would let you know that solseeker properties are a reputable company.  I bought my azucena through them

If you are still interested give them a call, and let them know that Barbara recommended them!