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Medina Elvira Fairways forum threads
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09 Sep 2008 12:00 AM by StyleTeam Star rating. 2 forum posts Send private message

Does anyone have any information on when Fairways is likely to be completed ?

Also, has anyone received a clear breakdown of guarenteed rental income from Royal Executive or Peninsula.

Any information would help.

I look forward to hearing from you.

Regards,

Jeremy




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11 Sep 2008 1:51 PM by Russ W Star rating. 230 forum posts Send private message

   Hi I'm on Tee 17 and apparently this seems to be on schedule ie completion in June 09.

In terms of rental scheme the guaranteed scheme works as a percentage of your purchase price ie if you bought for 300,000 then rental income is 15,000 pa.  This sounds OK but there are drawbacks.  Essentially Peninsula sell your "unit" to a third party like a tour operator so its pretty much out of your hands.  As a result no personal use or ability to gain extra income through owner generated bookings.  You are also tied in to a minimum contract (at least 2 years).  The furnishing also has to be of a certain standard and purchased through Peninsula at a cost of about 15,000 euros (in most cases this will wipe out the first years rental income) and I'm unsure as to how often you will need to replace the furnishings - every 4 years may seem reasonable with heavy use.  You are also expected to pay management fees upfront (1,100 euros) and will have to wait at least 6 months for your first income.  I'm not sure as to who pays additional costs such as utilities and community fees.

The variable system is not much better.  The targets that I have recently been given for occupation were well below the estimated figures I was given at purchase (surprise, surprise) as were the rental prices.  Essentially I've been informed that the target is 30 weeks at 700-750 euros for a 2 bed penthouse.  This may seem better than the guaranteed scheme but Peninisula will take 30% of this in charges.  They will also charge you the same rate ie about 230 euros per week for personal use and any owner-generated bookings.  Up-front management charges and the purchase of furnishings still apply as above (although furnishing is slightly cheaper).

Please note that for the properties to be rentable the other facilities etc have to be completed and other building works need to be non-obstrusive.

Hope this helps - it took me ages to find this and other bits and pieces of info out - Russ

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16 Sep 2008 4:42 PM by RC Star rating. 3 forum posts Send private message

I am also finding it difficult to get clarification on the rental contract.  The fixed scheme as it currently stands states that after a 6 month period to allow the development to be completed, payments will be made every 6 months in arrears.  So the first payment will be after 12 months of ownership.  However they have stated that they will make payments quarterly, but I have had no success in finding out if they will amend the contracts, the management company seems to suggest that the final contracts will be the same as the pre-contract.  It should also include that the fixed rental is index linked, but this is not mentioned either.  Has anyone else had any confirmation that these are not final contracts?  As they stand they do not reflect what I am being told anyway.  But unless the contracts are changed then these are empty promises.  I also do not want to spend money on lawyers to review contracts that are still a work in progress.

Russ, I agree with your view on the fixed and variable schemes, neither are great.  If you take the figures given of say €uro 750 per week for 30 weeks less the management fee of 30% you are left with in income of €15,750.  This is remarkably similar to the fixed scheme of €uro 15,000 for a €300,000 apartment.....and of course the gross yield (pre management fee) of 8%  is far below what was originally included in the marketing materials.



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29 Nov 2008 10:27 PM by Russ W Star rating. 230 forum posts Send private message

Anyone made any progress with this?



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