Jumping over babies

I have recently seen on a property web site for Spain a Rossana being sold for £161,000 for a 800 sqm plot on the early phase? Very worrying as I purchased an Esther for £169,900 two and a half years ago on phase one and has recently been valued by CAM bank for euros 260,437. approx £206,000. Maybe they bought years earlier so they can afford to sell it on at that price but what does that mean for all Esther buyers are we in major negative equity already, we haven't even completed. Today at 11.45pm Sky News announces inflation rising to 5% by end of this year and Bank of England confirms recession big time for next year in the UK. I don't know about anyone else but we could be borrowing to pay for something that is not the true value. Any ideas?

bernice many investors bought into this project in 2004, way before provisional planning was offered. they also paid 20%. these were true speculators.

i would imagine they were sold units at considerable less than when project was released.

if they bought at say 230,000 at 1.45 to the pound that would be deposit of £31724. One person is selling at 199000 euros - that is £159200 at current exchange (but 230840 euros) meaning they break even

they have hit a period at end completion when the credit crunch has scared everyone to death, there will be similar investors who bought on phase 4 and phase 5 who will no doubt want to sell on eventually as well

rgds

Bernice

There is a Rosana on Phase One currently on resale at just 189,000 euro, which is approx £149,000 at todays exchange rate.

A new Rosana will cost a fixed price of £192,571 (at 1.40 euro to the pound) or 269,600 euro, direct from Finca Parcs on their special exchange rate deal......................

Also I have seen one company offering Esther's on a 50% shared ownership deal.

It is a difficult time for all.

Alamred - I understand your example about the 230,000 at 1.45 to the pound and breaking even....................but that is only if they resold privately with no agents fees...........what happens if they sell through an agent who wants 25,000 euro commission - then they certainly don't break even................

Keith

Hi Bernice,

thanks once again for the update here. Your post last week really highlighted the situation and there are clearly serious concerns here regarding choices that investors/buyers are faced with in the present market conditions.  I replied last week following on from your post which really woke up the site. Well done!

I am in the same situation as yourself having first phase but I have now made a business decision regarding how to improve the current position so I'm well on the case.

Please feel free to contact me regarding this direct, and once again thank you for your earlier post which received some very unfair and harsh comments.

Regards,


David