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Corvera Golf And Country Club forum threads
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20 May 2008 00:00 by mrx9 Star rating. 5 forum posts Send private message

I am currently in a state of confusion over the best way forward for my phase 3 appartment in Corvera.

Due to the low Euro and property crisis in Spain and possibly Europe, I am thinking of pulling out altogether and as I am not able to reselll until completion, will lose the initial 15% deposit

My dilemma is that if I pay my second deposit , I could be left with a property that is going to bleed money, especially with the low exchange rate, which will be with us for quite a while according to my research.

There are many positives about Corvera but with the current uncertainty I am not sure if it is best to cut my losses now so as to risk losing more in the future.

I spoke to Corvera yesterday and they said that had not lowered any prices and increased a few but this does not mean it will continue like this.

Even if I pay my second deposit and wait untiul phase 3 completion, which is due for the end of 2009 and or even early 2010, it may not be possible to sell or even rent the property.

I wondered what general opinion on the forum is and look forward to receving some help.


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20 May 2008 09:24 by kev2 Star rating in Swansea. 202 forum posts Send private message



I can understand your dilemma, I bought 2 apartments in phase 2. Personally I suspect that if you can afford to hang on to the apartment for say 3 or 4 years after it’s completion, the investment will be a profitable one. In this time the development should be well established and totally complete, making the apartments much more appealing. Also the worse of the property crisis should be well behind us. The number of new developments should also have been reduced improving the supply demand situation. And if Corvera is the quality development that we expect it to be it’s reputation will make it stand out from the rest.
 
The problem I feel is that until you sell the property, you will be making a significant monthly loss on the running costs, one reason being there is a lot of oversupply in the Spanish rental market.  Phase 1 & 2 investors are in a worse situation as our apartments will be completed a year or so before the golf course, and an apartment on a golf course that is not complete (and little or no other facilities) and all the ongoing development onsite will reduce it’s rental appeal considerably. I will be assuming a loss of around £10 K on my 2 apartments in the first year. When you can rent I believe that the Spanish government take 25% gross, and then there are the maintenance, utility, management costs etc. I would be interested in any comments by Roda owners on how the rental side of things are going (and how it was going at the beginning).
 
Your phase should have the advantage of having the golf course operational (or close to it) and this should significantly reduce the losses and also increase it’s resale value. I would imagine that you would be able to sell it shortly after completion.
 
Another problem is that Calidona seem to take a long time in completing the developments (I’ve been told for example that Polaris is much quicker, Roda will still take some time to complete), and until it is complete the apartments will not be so appealing to rent or sell. I hope that as Calidona appear to be delaying development 3 that they will focus on the first two and as a result complete them more quickly.
 
I guess at the end of the day it’s a gamble, but if you do proceed with the development, although there are no guarantees, (who knows what will happen to the exchange rate, the property market etc in two years time). But if I had to guess I think that if you sold your apartment just after completion you probably would not make a loss (or at least not more than 15%). And the longer you held onto it the better the investment.
 
 
kev


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20 May 2008 13:20 by amazon00 Star rating. 43 forum posts Send private message

I think there will be a lot of people thinking along the same lines, a few things to consider if you were to keep it and sell on straight away is the cost of furnishing after completion £6000-£8000 if you want to dress it up to sell, the IVA and other completion costs 10% ish, and then on top of that the estate agents fees/solicitor to sell about 7%.
So really it depends on how much your property will rise in value to cover all the above costs just to break even, if your property does not rise in value then it may cost you more than your current 15% deposit. 

This is not to scare you just providing facts no one really knows how the spanish market will go but as Kev2 says you really need to be in this for the medium to long term to see a return, luckly for us I think we have bought on a good site so fingers crossed.

Hope this helps

Kev


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20 May 2008 17:33 by Anita Star rating in Surrey / Corvera Gol.... 569 forum posts Send private message

Just to add to what has already been said, it seems that Calidonia don't just abandon their resorts.  They seem to put a lot of effort in to publicity, eg competitions, sponsorship etc.  Take a look at the actual Calidonia part of their website, that is if you haven't done so already.   I think that once the golf course is completed, with its PGA status publicised, it will turn out to be a good investment.  Obviously, no one can tell what is going to happen over the next few years, we are all in the same boat.  The PGA must have done their homework and expect Corvera to be something special to have chosen it to be their European winter headquarters.  The government must also have high expectations of the area to open a new Airport.   Lets hope DeVere keep their option to run the course and open a Hotel.   A huge amount of investment is being made to the infrastructure of the area.  These are all positive factors.  I'm sure we have all had the jitters every now and again, I know I have.  But I would find it really hard to let go of our purchase.  I just have a really good feeling about it.  Lets hope that feeling is right.

Anita.


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22 May 2008 13:58 by arky25 Star rating in erskine, scotland. 370 forum posts Send private message

arky25´s avatar

kev - re rentals in roda;
at first as you say rentals will not realise their potential untill the devlopement is complete, but on the other hand if you are renting out on phase 1 or 2 you may get a few rentals from phase 3/4 buyers which helps, as they will want to see how things are done on pase 1/2.
this has been the case with us where we have done ok on roda by renting to later phase owners.
we also are advertising by word of mouth with we always believe is best anyway.
i have made a website with loads of pics and info and i think if you are renting this is a must.
anyone who would like the address please pm me or click below.
its true you will probably take a hit on the first few years but this is to be expected in most new build sites abroad, and at the end of the day you should only really buy into something you are willing to see through or else you are only really gambling anyway.
we are really pleased at the way roda is turning out and although sometimes you feel as though things are not moving quick enough you have to remember this is spain.
we have found that calidona have kept all their promises so far, and at the end of the day we will be left with two top class resorts in roda and corvera.
all we need is patience .... and money ;-)



_______________________

 

www.roda.250x.com   OUR APARTMENT

WWW.RKMEDIA.CO.UK RK MEDIA



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24 May 2008 11:44 by mrx9 Star rating. 5 forum posts Send private message

Thanks for all the advice and apologies for the delay in my reply.

I think that there is a risk with any investment and so currently it may be worth holding onto for a little longer.

My solicitor has advised me not to part with the second deposit until the building license has been approved, so I have more time to decide.




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27 May 2008 22:26 by sandrab Star rating in Bournemouth & La Ter.... 503 forum posts Send private message

sandrab´s avatar

Arky

I quite agree with you as a Phase 1 owner at Roda - its head down, spread the word and when all that Calidona have scheduled for the resort is complete - i.e. the beach club, the hotel, the shops, I believe it will be the resort of the Mar Menor area with Corvera taking the lead inland.    As you say patience and hanging on in there is the key!

 

Sandra



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Luxury holidays in Murcia spain at 

www.rodagolfinspain.com 

 

 



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