Help and Advice needed Please

Hi

I am due to complete on a Penthouse on condado soon but before its to late i need some advice. My Circumstances have changed like most pepole. Im not sure wheather to complete and try and sell,or rent it out for as long as possible. could anyone give me some advice on these opptions!

1) Dont Complete.

2) Are propertys being rented out,and how easy is it to do.

3) Would I be able to sell.

All advise would be appreciated, even if its to tell me not to go ahead and complete.

Thanks.

Hi Hacker,

sorry to hear about your change in circumstances but I fear like the rest of us you aren't going to come out smelling of roses in the short term.

As you know the property market in Spain has dropped in the doldrums, and most if not all people who have bought in the last few years will find that they've paid more than the market value as it stands now.

Your predicament is no doubt familiar to most and to be honest there isn't an easy answer to it as it all depends on your own personal circumstances.

If you are expecting to be able to complete and either rent it out or sell it on again then think again, there isn't the demand there yet.

So it all comes down to whether you can afford to complete and leave it sat empty or do you just turn around and walk away losing any deposits you've put down.

The choice isn't an easy one as it boils down to the lesser of two evils for you and your circumstances. Sorry for not being more positive in this post but there's no point not telling it straight.

Good luck anyway in whatever you decide to do

Very sorry to hear your situation has changed, we completed on our penthouse just over a year ago and like you were having severe second thoughts  - as to your options,  I guess it depends how deep you are in or how much you are looking to get back ?

1) How much would you lose by NOT completing - your 40% of  the purchase price of 137K  ??   - but then you wouldnt suffer any IVA or completion taxes and mortage costs  - which could be around 12% of the purchase price

2) Rental is available  - but its very slow (although the Olagolf  takeover should pick up the golf course and subsequently the rental market - I see that Olagolf are keen to push Spanish golf into the Russian market) but by the very nature of the penthouses they will be a niche market to rent (it wont attract family + kids like the Jardines would) - we are looking to rent this year and dont expect to get much more than 200 EU week max  for optimistically 6 - 8 weeks - our booking agent tells me bookings are slow. If you are not a golfer or a sun worshipper there aint much on site to keep you entertained - if you have ever stayed at Condado you wil know what a ghost town it can be with very few people around - not everyone wants this

3) I am sure you could sell as everything has a selling price - I have seen appartments on re-sale this week at around 110K , so its not a case of being able to flip it quickly for a tidy profit. It wil take a while for prices to come back up,  but longer term and now the Polaris bankruptcy is temporarily put to one side (until the next time)  there is some notional equity to be made if you can afford to stick with it

Good luck with whatever you decide

Mark

I agree with the other posts, your options are not great.

As a forth option, have you spoken to the seller and told them you are considering pulling out of the sale. I know its a long shot, but I recently bought a place in America and I was going to walk away from my deposit, instead they knocked 25% off the asking price if I complete.

I am not sure who currently ownes the property you are buying weather its Polaris or the bank. I would imagine its a bank and that property will have cost them very little, I think you may be able to get them down a little.

Hi all im also in the same boat polaris pushing for compleation i should have been out yesterday signing,but as all the post on here spell out some pos but most negative if i sighed who does all the repairs if any needed etc etc do the new owners look as tho they starting to do work around cda?

Hi all,

we completed this week and found Polaris helpful,

we did our snagging with Olga on Thursday and when we went to look at apartment on Friday most of the work had been completed.

The resort was quiet but we found it very relaxing, not sure if that's what everyone is looking for but suits us.

Cheers

Steve & Ann-Marie

Hi Hacker,

Polaris are always helpful when you are giving them cash!  I appreciate the difficulty in which you find yourself and sincerely sympathise.  Without knowing your exact position it is difficult to comment.  However I would suggest that if you are in a position to complete you should do so.  You don't want to lose your initial deposit of 40% and be left with nothing.  There are reasonable mortgage deals out there at present.  I follow the money markets and would suggest that you delay completing and stall Polaris as long as possible.  The Euro sector is in turmoil due to the Greece crisis.  Sitting in the wings are Portugal and Italy to name but two (Spain is not far behind).  The Euro sector cannot allow Greece to opt out of the Euro, this would be a very large nail in the Euro sector coffin.  The bailout of Greece then leaves the door open for the others, putting great stress on the Euro and resulting in the markets losing confidence.  The main reason Sterling isn't stronger at the moment is the likelyhood of a hung Parliament.  A hung Parliament will seriously affect the fisacl decision making process, this again results in concerns for Sterling.  Things will be a bit clearer after the election.  In general the experts in this field are backing Sterling to outstrip both the Euro and Dollar.  This is based on the belief that GB is in a better position to repay it's budget deficit than others in a similar or worse positon.  The general consensus of opinion is that the Euro could be 1.30 by the end of the year.  This will obviously reduce the Sterling cost of your apartment.  Should the Euro indeed reach 1.30, for people completing later in 2011, it is well worth considering forward buying at this point.  You can buy your Euro's up to 12/24 months in advance by placing a 6% deposit on your transaction.  This is what I did when the Euro was 1.47, it fell to 1.12 within months.  Renting out is not a issue I would seriously take into account, there is not a great rental market at Condado at present.  This is due partly to a lack of facilities and a low exchange rate.  Should the facilities improve along with the exchange rate the rentals market will improve and should be looked upon as a bonus rather than a banker. 

Just a few things for you to consider.  However do take note I am not an expert in any way, I base my comments on my own experience which in the past has allowed me to make informed decisions.  Always seek professional and expert assistance in these matters.  I hope this gives you some options and all turns out well for you.

On a brighter note.  I love the place, certainly not all I bought into, disapointed that all facilities are not as promised but I'm sure we will get there.  To be honest if we don't get any further development, for sure I'll be disapointed, but not heart broken.  It is what you make of it.  I hope you can complete and get out to CDA, i'm sure you'll love it.

Del.