03 Oct 2008 12:08 PM:

I attach below the letter that Mike posted in the 'It's true then!!!' thread.  This is what I meant when I said people who believe this kind of sales promotion are stupid.  The market price is the price that the last apartment sold at.  If the developer sold at 140,000 this is therefore the market price because people will not pay more.  It is not a promotional price at all it is the price that the developer hopes he can sell at.  To say that the 'real' value is then 220,000 and that you will gain 80,000 equity tomorrow is plain rubbish.




Community thread: New roof on old building...

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03 Oct 2008 11:22 AM:

I only said that it was stupid to believe the lies of agents and developers.  I never said anyone was stupid.  Everyone, including myself who has purchased in Spain in the last few years is loosing, and will loose more as the market is getting a lot worse.  If the developer is selling apartments for 140,000 this is what they are worth.  When an agent suggests you will make a 40,000 profit just because the developer has withdrawn this offer it is plainly silly.  The market is still the same.  They are worth 140,000 until the economy improves which it will not do so for several years.  They may be worth even less in the near future.

My postings on this site have been mainly about getting my deposit back because we, unlike many other buyers of property in Spain, had the opportunity to do so because the development was more than six months late and we had the guarantees required by law.  I thought it was the right thing to do and many others did the same.  I respect the decisions of others that did not but please do not try to fool yourselves that your apartments are worth more than they are.

If you bought your apartment to enjoy yourself and plan to keep it for a few years you have lost nothing because prices will eventually recover.  If you bought it as an investment or to rent out part of the time you will be dissapointed.  In this case my advice would be to get your deposit back if you can and buy cheaply elsewhere.  Yes prices in Alcaidesa have also fallen so go get yourself a bargain if you can get your money back.

The current turmoil in the financial markets was caused by people, especially in the USA, UK, Spain, and Ireland believing the myth about rising property values.  Now everyone can see that it is a myth.  Prices in the US have fallen by up to 50%.  They will fall by at least 30% in the UK (we are half way there already and I believe that they could actually fall further than 30%).  I am not a pessimist, I am a realist.  Spain and Ireland are expected to fair even worse.

We bought our top floor for 170,000 when it was just released.  I thought a litle while after that it might be worth 200,000.  A 30% fall from this 'value' makes it 'worth' 140,000.

I did not mean to offend anyone.  I was just giving the benefit of my experience.  I am not trying to be clever.  Please see what the truth actually is and if you have the opportuity to get your deposit back then seriously think about it.

Community thread: New roof on old building...

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02 Oct 2008 7:11 PM:

I got my deposit back on a top floor in phase one.  I finally got the money back at the end of 2007 plus interest after claiming on the insurance guarantee.  I paid 170,000 for a top floor unit with good orientation.  I have just visited the site.  I do think they look well finished although somewhat high density.  The social housing on the road is larger than I was previously told.  They are not worth 220,000.  I think that 140,000 is the more likely market value.  You must remember that there are so many for sale and rent that to get an return on them for the next few years is almost impossible.  If you believe the agents and developers after all this time and lies you are stupid!  You will live with the other concrete skeletons in the later phases for years to come

Community thread: New roof on old building...

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28 Feb 2008 8:54 AM:

Hi Tamsin

We had our deposit returned.  As with you the developer did not acknowledge the letter from our solicitor.  However, after one month our solicitor could prove that no reply had come and therefore contacted the Insurance Company that will have provided the bond for your deposit.  It still took a few more months but eventually we recieved our deposit back plus 4% (we thought it should have been 4% per annum - 4 years in our case - but we lost that battle and was glad just to get our money back)

As long as your solicitor wrote to the developer before the certfiicate of habitation was issued you should be ok.  I am suprised that your solicitor does not know what she should be doing.  Send me a private message if you want more information.

Community thread: NIE Form - help on completion please!!

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22 Jan 2008 12:58 PM:

Hi Justine

I think it would help greatly if we knew exactly what documents are required from the Junta de Andalucia to prove a development is legal.  We are about to complete and I want to ask our solicitor the question before we do so.  If it is not possible to confirm developements are legal via this route then the property market will certainly go into tail spin.

It is an unusual situation for Brits to understand because in the UK the District Council has planning powers and we do not need to refer to the County council except on raod matters.

Forum thread: Home demolished in Vera

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