seriously worried re valuations !!!

Hi there

is there anyone else out there majorly concerned with the valuations that are coming back from mortgage lenders??? is it a fact that our aprtments have devalued so much ??? not only are we getting hit by the exchange rate but also by the property market devaluation in spain as every where else!!!!

I am very reluctant to complete into a potential negative equity of £50000.00, just wondered if i am the only one out there?  and if im being honest im not 100% sure i want to continue it may be more cost effective to walk away and lose considerablly less than the neg equity. 

i suspect it will take the next 15 years to even break even and i dont want that either at least at this stage i have a choice once completed then i dont ...!!!!!!

feed back here would be greatly appreciated  im in a quandry!!!!!!!!

Ann x

The truth in what is really happening in the Spanish market is something that you certainly won´t hear from your agent or the developers but it is something that will have a long term effect for people that typically bought properties 3-4 years ago off plan

The fact is that most new off plan properties will have lost between 30% - 50% compared to the original contract prices and often the only way that you can get a mortgage is by taking the builders mortgage, based on the original property valuation when the build started 

I do not sell property but regularly get involved with the completion process advising people and have been personally effected by the falling prices, in my own case on an apartments in Villamartin which I bought 4 years ago for €125k and now I would be lucky to get €90k if I could find a buyer

Fortunatley the properties I own are on established resorts, they rent well and i pay, compared to PW Resorts minimum annual services charges and have calculated that, with the reduction in my mortgage payments over the last year, that renting the property for and average of €120 per week covers all of my costs

If you have bought a property to enjoy then great you have bought in an attractive area with good beaches and developing facilities, if you relying on rental income or as a short  to medium term investment, sorry forget it  

It will take any development and new property approx 12 - 18 months to establish itself and, based on the number of properties concentrated in this area, the weekly rental rates, based on the experience of other Polaris resorts, will be lower than some agents quote

So what happens if you want to walk away loosing your deposit. Unfortunatley the fact is that because the developers cannot resell the properties, chances are they won´t let you now many larger developers have dedicated teams who are instructed to pursue buyers in the UK Courts to recover all of the money due on the contracts which, once they have a judgement in a Spanish Court, can under EU Law be enforced in a UK Court

I am sorry that this post seems to be bringing bad news but this is the way things are, if you bought as a lifestyle decision then you can enjoy holidays for many years, focus initially at promoting your property to friends and family 

Hi there Ann

I agree with your viewpoint and as I have stated on previous postings we are very concerned with the lack of committment from PW with facilities for La Isla and decisions to re-locate town centre. Will Oasis, La Isla Club and golf course ever materialise?

Not too sure of what to do right now......

Hi Ann,

I understand your problem, we have just completed on our apartment.

I bought the apartment as a retirement option, and as such I am not looking for a return on the money now or even far in the future. If I am able to use the apartment and facillities and pay what is a faily low amount per month for what will be, cheap holidays every year, my own second home, and a nest egg for the future. This nest egg like any other investment can go down aswell as up.

If you have bought the apartment as a way to invest money and make money by buying and selling or to rent the apartment out then; like many others, the global situation will mean that you will not make anything in the short term.

So, If you have bought for the apartment to be used by you for enjoyment of what will be a great place (if not already) then buy and use it.

If you want to invest, and it sounds like PW may have you over a barrel even if you want to pull out, I would try to re sell. There was a posting not long ago from someone wanting an appartment?

On the forum site you can be given what I feel are negative views (even if totally true).. So keep in mind why you bought in the first place.

Hope to see you out there

Neil (Block 10)

Ann

While you are thinking about what to do, don't forget to take into account your property may have dropped in value since you paid the deposit but because of the weak pound, "if" you could find a buyer you could sell it at a much reduced price in euros and once exchanged into sterling you won't have lost that much in real terms, the eg in an earlier post bears this out, the property was 125000 euros 4 years ago and is now only worth 90000 the actual sterling difference is only about £2000. This way you may lose some money but certainly not as much as if you walked away, not to mention the grief you may get from Polaris. You would have to factor in completion fees and mortgage fees also but just thought I'd point it out to you as it's worth thinking about. Good luck with whatever you decide to do..

Simon 

Thank you all

Its really lovely to get all the goodwishes and advice from you, and it makes it all the harder to think about givibg it up !!! I am interested in selling my contract though. what a great idea !!! i did nt think of it i was so stuck in the moment !!!

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once again to every on on the thread thank you so much for taking the trouble to comment.

Regards Ann x