SADM to be or not to be ?

Now that people have had time to read and digest what is in the report what is the general opinion will SADM ever be built or is it  game over as many suspected months ago ?

Hi  J.A.

NOT TO BE!  Definitely GAME OVER. I personally think it was game over when they both went into voluntary administration. NO company does that until they have explored every possible avenue and gone down every road to raise money. What they have done is always the last resort.

If they can go ahead and just build the amount of properties for people that still want their house, which is probably only a few hundred, you would not be able to have a proper complex, there would not be any facilities, therefore, it just would not be a viable propersition. If of course there was an idiot, sorry i mean an investor who was prepared to put good money into building say the original 1700 properties, with facilities such as a hotel, bank, and shops, bar, restaurant etc., that would probably leave approximately 1200 properties unsold that would have to be sold in this present day climate of recession and housing meltdown. So far, does that sound feasable, especially to you TONY?

Pauline my better half only came back about an hour ago from walking our german shepherd Rocky, when she said to me: I have just seen a Tulipan appartment built by San Jose up the road and the owner has a big sign outside saying, for sale €65,000 and we live just 6 minutes drive from the beach. Like most people they will take an offer. Anyone got €50,000 spare? I really wish we had, so we could sit on it for say 7 years when the market is likely to be healthier and then sell and make a killing.

What price then a tulipan in-land by about an hour or so at SADM?

Yes J.A. i will put my head on the block and say:  GAME, SET, AND MATCH.

Even if properties in-land have held their prices slightly better than at the coast, as far as i am concerned it really is game over and just give us our MONEY BACK.

                                    Bob.

P.S. For those of you that still want their house at SADM, i really and truely hope you get your wish but i can only state what i firmly believe. If i am wrong i will be the first to admit it and say: That is a great outcome for people who wanted it, but i do really fear the worst, as i am sure many others also do.
 

My beliefs have beliefs have been with JA on the outcome all along.

Irrespective of the report and at the risk of repeating what I mentioned some time ago:
"If they can go ahead and just build the amount of properties for people that still want their house, which is probably only a few hundred, you would not be able to have a proper complex, there would not be any facilities, therefore, it just would not be a viable propersition. If of course there was an idiot, sorry i mean an investor who was prepared to put good money into building say the original 1700 properties, with facilities such as a hotel, bank, and shops, bar, restaurant etc."
The infrastructure costs, for the provision of roads, water supply, sewage system, electrictity supply, etc., for a development are massive.

The development was for 10,000 properties, therefore, the infrastructure costs would have been apportioned. 1 premises = infrastructure_cost/10000 when taken as the development in its entirety, but that isn't the case if you did just construct 1 property. Just the same as if you constructed just 2000 premises, it would not simply = 2000 x infrastructure_cost/10000 it is possible that the cost may be 75% of the entire development, therefore, not making the development feasible.

SADM is dead. Maybe resurrected in 10 years time, never know.

Hi FIN.

Yes i dont think many people would disagree with either of us, except perhaps TONY, but then i think he is fighting a losing battle anyway.

As you said the original plan was for 10,000 properties, i was of course talking about the 1700 properties in the first phase that they had planning permission to build but did not have the money to pay for the licence´s. The 10,000 properties making up the whole complex never entered my mind, as i did not think anyone would be that INSANE to build that many properties in this present climate, even if they had the money, which they dont.

Wherever we drive we keep our eyes open for properties still being built and with a bit of activity going on but so far all we see are unfinished projects that look like ghost towns, except for the few commercial places that ARE being completed, but there does not seem to be too many of those either.

Maybe buying a big camper van now would be a better option.

                        Bob.

Hi Bob & Pauline

We do the same here in Jumilla!  There is a block on the outskirts of Jumilla that looks very desolate (no sign of any builders), however other projects seem to be going ahead, including the one where we hope to buy an apartment.  These aren't major developments, usually less than 100 houses, though the overall plan where we are buying is for 380 houses in three blocks.  The first block is almost completed, and the second one is well underway and currently being advertised.  We walk over that way from time to time, to make sure that the builders are busy working there - we like to keep an eye on things!

Regards.

Sue

Hi Sue - John.

Get the whip out and make sure that where you are thinking of buying that they keep up the momentum, having said that we have noticed that when they start building the spanish workers are very good and not only do they keep at it but they work long hours, as we have noticed with the commercial site being built opposite the La Zenia 18s own appartments.

Also as i am sure you are well aware, even developers building new properties, are not above doing a financial deal when selling their properties. They want to unload as many of their homes as quickly as possible, especially in this climate, so dont be afraid to make an offer. Once they know you are serious and not wasting their time they will always consider a deal. There were people  that went direct to San Jose and bought a property at SADM below the listed price and that was before the credit crunch etc. etc. etc. when things were good. You are holding most of the cards, if not all of the aces.So good luck to you both in that direction.

Personally, i also think now that it is better to be on a smaller developement than a larger one.

Dont forget we must get together in the very near future but i will send you a P.M. regarding that.

                                             Bob.