Hi David Hendrix. Are you related to the late, great Jimi at all. If so well done!
I was feeling a bit chippy and bored and therefore thought that I should break my silence.
I am surprised that you felt confident enough to take on old Chingo and Palomino in your post. I made a few reasoned, neutral comments and observations in the thread a little way below entitled "
new member needing info about finca parcs" started by Gail and I received a vicious ( although non-reasoned) mauling. I was such a rogue that old Chingo reported me to the headmaster on 2 July, although the smack on the hand, never mind six of the best, has yet to arrive, I can only assume that the developers, having read my comments, thought that I was spot on or at least thought it a little difficult to engineer any reasonable reply which would bear scrutiny; ie silence is golden.
To be serious though, you are entirely correct in what you say with the exception that the partiy with the greatest exposure to risk is the bank not the developers.The developers are a corporate entity and can go bust any time they want.
Unless anyone wishes to submit something different, my understanding is that the developers are a relatively small company registered in Murcia who are financed by a bank. The whole business ethos behind Finca Parcs was that the developers, although they may have put in some equity, would contract on the basis that the punters paid 10% up front and the balance on completion. The construction work is therefore largely financed by the bank and they want that cash back plus interest. That is what the bank wants and no purchaser or prospective purchaser should ever lose sight of this fact especially in the current market. The developers offer was designed basically to appear attractive to investors who only had to put 10% down and then hopefully sell -on the contract at a profit.There is absolutely nothing wrong with that at all but, as with any commercial adventure, there is risk.
The market has turned and the developers (read bank) have financed a lot of the basic infrastructure for the site and are mainly building on phase 1 and 2. They are out of pocket for all these costs incurred to date less the cash deposits paid.They want their cash back. How do they achieve this in this market? By doing what they are doing ie trying to complete and sell phase 1 and 2. In this connection the developers are trying to persuade people who purchased on phases 3,4 and 5 to move to phases 1 and 2 with an inducment of soft financing. and perhaps getting their guarantee. So who is going to buy on phases 3, 4 and 5 if people move? I would submit very few at the prices being asked. I would also submit that it should be apparent to anyone with an open mind that the bank must have little or, indeed no interest, in financing the latter phases unless, first they have been sold, and secondly the bank considers there is a realistic prospect that the vast majority of these sales will complete.
It seems to me that this is the old trick, ie attempt to complete part of the project in order that trhe bank can recover its present outlay and forget about the rest. The reality is that it is the bank, not the developers, that will decide what is done or not done at FP.
I also think that those who have actually purchased on phase 1 and 2 need to consider, in the cold light of day ,whether it is actually sensible fot them to complete. When I was interested, I was told that the majority of the purchasers were investors who would wish to sell-on. Most of these unfortunate people will not have the finance to complete or, if they can obtain the finance, will not want to complete for the simple reason that, in this market, they would be throwing good money after bad. Why should these people pay a lot more for a property that it is actually worth less in the current market. if you are an investor with the cash to complete it would make more sense finacially to wave good bye to your deposit and invest your cash elsewhere.
The result of all this, as has happened many times before, is that an awful lot of the plots on phase 1 and 2 will not, in the first instance, proceed to completion. The developers will of course then keep the deposits but the bank will then insist that these properties are put on the market and sold for the best prices which can then be obtained. Remember the bank want thier cash back plus interest. They have no concern at all ,in these times, whether the developer makes any profit or not. They have even less concern on the effect their actions will have on the people who have already purchased at FP. Result is plots which are as cheap as chips. Its the same all over Spain right now, also in the good old USA
For those who bought to live in Finca Parcs as opposed to sell on, well they will have to balance the risks. if i had bought with a view to living at Finca Parcs, I would certainly be asking the developers for some very straight answers to some very difficult questions before parting with my cash. But then again each to their own and perhaps it is easier to discuss the colour of the curtains and hope that everything will turn out all right on the day.
If anyone disagrees with my views, a reasoned response would be appeciated rather than invective. For Palominos information, I am not a woman although I think that my wife is and she shares my views about FP. Should I give her a thump?