17 Dec 2007 6:41 PM:
Rocky, I am very sorry to hear your fears have been realised. Your story must touch a nerve for many of us who didn't know what to expect, but certainly expected something more than we've got. At initial interviews with Macanthony at their Calpe office I was asked would I re-sell at completion or keep and rent out. At the time I couldn't say but assumed both were possible. Three years later it seems neither option is achievable.
No-one specifically promised me anything and I went in with the usual understanding that all investment can be risky. But all the signs were good. They still are, I think, but it's still such a long way off being a complete holiday destination that it's now a matter of how long can we survive without Marina D'or being a fully finished all year round resort? Unfortunately Rocky couldn't wait any longer.
A quick anecdote about how I ended up buying at Marina D'or. It was the Property Investor Show at ExCel in 2004. I had gone to learn about and get leads for a property investment business in the UK. I wanted to be one of those buy-to-let landlords that I had read so much about. I was cornered by Macanthony as they had a stand at the entrance with a collection of smart suited salesman types that I took an instant dislike to. I told them I was only interested in the UK and walked on.
They got me on the way out! "What had I got to lose by taking a viewing trip?" "If they told me that there was 100,000 euros waiting for me in Spain and all I had to do was go out there and get it, why wouldn't I?" The 100k was in fact expected growth over 4 years on a long off-plan investment. No such deal was available when we got there as the off-plan term was 2 years. My apartment was 190,000 euros and I am told the latest ones of the same type are being built at 250,000 euros.
So apparently I have made 60,000 in 3 years? But Marina D'or are still building and selling apartments all the way up the coast into Cabanes. The resort is covered in MD sales offices selling off-plan but there is no big effort for resales either in Spain or in the UK. Just look at where Marina D'or have offices all round the world selling new units. Now look for an equivalent sales effort for existing apartments on sale. A few balcony signs if you visit the site but without an equivalent huge international sales effort, we don't stand a chance.
If I knew then what I know now about UK buy to let. I have put about £80,000 of money raised against my main UK home into Marina D'or - and it returns nothing! Using gearing typically available here for buy-to-let I could have bought ten properties that would all be self-financing in the healthy UK rental market. Or 40 old houses in Bulgarian villages that typically sell for £2000 - £3000.
Older and wiser......
Community thread:
Anyone need their property looked after
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