22 Jul 2008 12:00 AM:
Hello everybody. If you trawl through the depths of the Santa Ana forum you will see that some considerable time ago I warned people to withdraw from the doomed development at Santa Ana like I had done and luckily a few people took my advice.
For those of you that did not this is really not, and I mean that, an ‘I told you so posting’ but a bit of a reality check for the IWMH brigade and others. Laudable as the IWMH campaign is I think that a more realistic campaign should be ‘Imprison the Directors of San Jose’ – now that is a campaign that I would certainly join and I am comforted to a certain extent that, after the investigations that are being carried out with San Jose at the moment, there is a faint possibility that some of the Directors may find themselves in that very position. Let us all hope so.
As I said, as laudable as the IWMH campaign is, the probability is that none of the contracts to buy properties at Santa Ana will be honoured at their current prices.
Spain along with many other countries has a major financial crisis and this has finally been accepted by Zapatero and he actually stated that fact quite recently. This crisis affects the building industry quite severely and any financial institution that is foolish enough to try to come to the rescue of San Jose is NOT going to allow houses to be completed in 2009/2010 or whenever they may finally be completed at 2004/2005 and 2006 prices. Assuming that the average price of a house at Santa Ana has increased in this time by, say, 50,000 euros this would mean that they would be losing 80million euros. At any time no company could afford to do this never mind in the current depressed building sector.
It appears that Herrada del Tollo has few or no assets and the likely decision of the judge will be to put them into liquidation. An outcome that happens in a great many cases such as this and an outcome that the directors of San Jose are probably expecting despite their continued appeasing rhetoric and hence why Herrada was set up in the first place for the Santa Ana project, rather than San Jose issuing contracts in their own name.
I sincerely hope that I am wrong and that you IWMH people get your houses and you others get all or a portion of your deposits back due to the fact that deposits have been paid to San Jose rather than Herrada and San Jose have given receipts for the money paid. to those of you thinking of buying elsewhere at the moment please sit back and wait as property prices will still fall for some time before things improve. Wish I had waited before I committed myself to a purchase as I would have saved quite a lot of money. Good luck to you all. Peter.
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