Glossy pictures of sleek residential developments
Promise of guaranteed rentals
2 year build plan
6000 deposit paid
No bank guarantee offered
2 years later not started
Builder refuses to repay deposit
Builder goes into administration
No this is not Spain but good old UK:- Salford Manchester and the same is happening all the time in UK major cities
In fact losing the deposit of £6000 is the cheap way out as many have been forced to complete and now face having no tenants and the value dropped by circa 60%!!! With little or no chance of the property market recovery, when it comes, of getting them out of trouble
Some saw this coming with inner city flats but in many instances the buyers plight is much worse than in Spain
At least in Spain the inherent desire by northern Europeans,to buy a place in the sun remains and is expected to grow
All it needs is for the economic recovery in their home country to get going before they come back into the market again
A local UK property expert has been quoted:
It’s a classic example of how certain parts of the residential industry-mainly the developers, goaded on by greedy agents who were abetted by unscrupulous financial advisers, who duped gullible mortgage lenders and would be investors into buying off plan at exorbitant prices that anyone with half a brain could see were overvalued, unrealistic and unsustainable – screwed the system and made personal fortunes very quickly!!!!
So whilst what went on in Spain was not nice for those involved it is a touch unfair for people to think ‘it can only happen in Spain’……Dubai and the so called emerging markets are even worse!!!
Off plan is now dead in the concrete for some years to come everywhere and with sensible precautions buying a re sale or ready now in Spain is safe and as we all know just now there are some great ‘real’ bargains to be fou