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Arenal Golf - Phases 2,3,4,5 forum threads
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28 Dec 2006 12:00 AM by bucket0925bucket Star rating. 2 forum posts Send private message

As phase 4 nears completion, I have just received an offer off the realty company dealing with my purchase. They have offered to pay the whole of my mortgage by renting out my apartment on a long term basis.

Has anyone else been offered such a proposal and if so what should I be looking out for?



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29 Dec 2006 8:14 AM by alhaurin Star rating. 17 forum posts Send private message

You should be looking for flying pigs!!!!!!!!!!!!

I own a rental company on the coast which specialises in renting new off-plan property that has failed to sell prior to completion.. If your realty company has offered this, snatch it with both hands, get the lawyer to check the contract, and bind them to it for about 4 years.

On a serious note, rental values are currently in decline, we are currently achieving about 4% gross on a good product that is in demand. Mortgage rates are now approaching 4.5-4.75%, unless you have a very small mortgage the figures obviously dont stack up. There are going to be a lot of properties available on Arenal Golf for both short and long term rental, unfortunately the age old economic saying of supply and demand comes into play. This will obviously drive the price down.

 Be aware  if you have a low start interest only mortgage, it won't be long before you go to full repayment, the repayment figure will then jump considerably.

I don't mean to be a doom and gloom merchant but what I always do is not to raise false hope for owners, then return to them in 9 months and tell them "we are still marketing the property but we feel rental values have fallen, will you now accept x" - the figure other companies could have achieved within the first few months. I have an appointment with an owner in phase 1 at midday today where a number of companies have been trying to rent the property long term for the last year with no success, the quoted achievable rent was far too high-better to have got 800 per month for the last 12 months than hung out for 1,000 and got nothing!

If you need any further info please dont hesitate to contact me on 0034 687336868

 



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