AVOID LIKE THE PLAGUE...

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When we bought our phase 2 property we were originally given an estimated completion of Summer 2008 - that then moved to December 2008 - we have now been told bureaucratic issues at the town hall have been resolved and building will start in September with completion by March 2009 latest.

Our contract clearly states that from obtaining the building licence (ie. September presumably) Calidona have 18 months to complete or they face penalties.  We have a clause in our contract saying we can sell before completion - but our solicitor had to ask for it to be included.  She has also obtained written confirmation of extension of the bank guarantee when it expires.

Although we are sorry about the 9 month slippage having recently been out to Corvera and reminded ourselves of its stunning location - and also having been shown around Roda and seen the excellent standard of this sister development we are still convinced we have done the right thing.  This is going to be our retirement home and we hope to be able to hang on in there... 

Incidentally we were given a copy of the updated Corvera brochure which clearly carries both the De Vere and PGA logos which must indicate their firm commitment.

This post is in response to the post by Investor - the idea of a forum is to express views and concerns and generally talk though issues that people have with Corvera.  If you had read my post correctly you will note that I have suggested that we try and get Calidona to provide us (the investors) with some information as to progress and when completion is expected. As it stands the development is circa 9 months late, there is no comeback on the builders  and generally, whilst you might not agree, I believe that to be unsatisfactory. You might be happy to wait and wait but others are not - its not going to spoil the development by asking them for information. If its going to be as good as you say (a la Roda) then it should sell itself and therefore any threat by concerned investors will not impact on your investment. 

Its not a get out stratgey - its a hold on, I've put 85000 Euros into a property which I'm now not going to have built until Spring 2009 with further phases to be built. Interest alone on these funds amounts to over 300 Euros per month at 5% which more than eats away at any potential profit to be gained from a sale (although that was not the reason for my purchase). Who gains from the interst - the builders of course therefore what incentive to they have to complete? 1000 (guess) properties @ 300 Euros per month (average) is 300,000 Euros per month, 2.7million Euros for the 9 month delay nice if you can get it.

The main issue is that people feel vulnerable - the guarantees will run out and will require to be renewed. They have no apparent comeback on the builders and as I said in my previous post, people will have to sit tight or do something. You're deluded if you are happy to invest that kind on money in an investment and not receive any information or progress and be fobbed off when you do ask. If you bought on the Stock Exchange you would get annual reports and information.

Ronnie

Sorry but I do not have time for verbal tennis.

Glad we both agree it is a great investment .

Sorry - why waste time responding to the post then..........

Participation is the key not take offence when prople disagree with you........

 

your comments are spot on ronnie,  i am amazed at the happy go lucky attitude at certain purchasers regarding the unproffesional manner at which calidonia has treated us their clients, with the amounts of money involved we have every right to be concerned at the lack of reliable information or clarity on when the development  may commence.

if this is the normal way this company operates i feel we may have problems getting our original bank guarantees renewed when they expire leaving us all vunerable.

it will be interesting to see if the latest date of sept 07 turns out to be reliable, or if it will turn out to be just another false promise, i have been told so many lies regarding corvera that i am not really sure any more of what to expect,.

if sept  07 arrives and passes without any progress i wonder if they will have the same laid back approach as they have now.

dave

I've purchased two apartments at Corvera and I would just like to say that I agree with Dave's and Ronnie's critisism of Caladona, they appear to be treating us with complete contempt. Why are they not communicating? I sent them several emails some months ago and I am still awaiting a reply. Personally I havn't come accross a company that ignores its own clients to this extent. Although I still believe the development will be a good one, I for one will be unlikely to buy another property off the company as I would prefer to deal with a company that has some respect for its own customers.


This message was last edited by kev2 on 6/22/2007.

I would just like to add to my previous message that I am not unhappy with the delay ,so much as the lack of information about the causes of the delay. The reason that I am not concerned with the delay is that I purchased property with a selling price of 445,000 Euros, the latest property inflation figures for the Murcia region are 12.9 % (Euros per square metre), leading up to the first quarter of 06 (www.spanish-living.com/property/ms-spanish-property-market-report-q1.php) . Assuming corvera property inflation is 'average' ( although I believe it will be higher) and that the property inflation is approximately the same now in 07, I should be making around 1% a month, ie approximately 4.500 Euros a month. This more than compensates for the interest on the 30% down payment ( for me with a UK mortgage around £540 or 800 Euros). Personally I believe the development will be a very successful one despite Caladona's lack of communication policy.

Another resource available on regional property inflation in Spain can be found at www.spanishpropertyinsight.com/spanish_property_information.htm  here it states that in the 12 months up to the third quarter of 06, property inflation in the Murcia region as a whole was 11.5 %  (in absolute value), this regional information can be downloaded as spreadsheets.

          kev

 

This message was last edited by kev2 on 6/25/2007.

This message was last edited by kev2 on 6/25/2007.

Hi Everyone,

I have a property in Roda (Phase 1) which was bought off plan with the view to selling. I also have a deposit on an apartment in Corvera (Phase 2).

I have to agree with many of the previous posters who are annoyed at the delays and the lack of accurate info coming from Calidona, who I think have treated us very badly. It is probably a pretty safe bet to assume that the delays are due to the developers using our deposits to complete Roda (which is also running 9 to 12 months behind schedule).

If the developers read these forums then it would be a good thing for them to take note of the sentiments being aired. I for one would be happy to add my name to any joint approach to Calidona to get some answers and indeed, action.

Some of the posters have mentioned that they are happy to sit back in the knowledge that the value of their property is increasing. I saw a figure of 12.9% for last year I think? I can assure you that for resales this is not happening. My apartment in Roda cost me amost Euro 245,000 by the time fees etc were added to the purchase price. This same property is being marketed by Roda themselves in the latest phase at Euro 285,000. I nice profit you may think. But, not so! Just take a look at the prices being asked for 2 bed penthouse resale apartments on the web. Most are between Euro 245k and Euro 260k and I have yet to convinced that any are reaching the 260k. Whilst Roda seem to be able (if you can believe them) that they can sell properties at Euro 285,000, purchasers don't seem to think that Euro 260,000 for an apartment immediately available is a bargain. My apartment has been "for sale" for a year now and the best offer I have received is less than 250k. When you take into account the estate agents commission and legal fees etc, Euro 260,000 would just about see me clear. AND that doesn't even take into account interest on any loan or the opportunity cost of the money invested.

I'm not being negative, just realistic I think. Whilst the developments are (Roda) and probably will be (Corvera) good, this is one investment I wish I had said "I'll pass thanks!"

  Steven

Just a couple of general positive snippets about Spanish property I thought the forum might like to read

Foreign investors return to Spanish property

Foreign investment in Spanish property has increased by 33% in the first 2 months of 2007, according to figures from the Bank of Spain. Foreigners spent a total of 806 million Euros on Spanish property in January and February, compared to 606 million in the same period of 2006. This is the first increase since the end of 2003, when the value of foreign property investments in Spain started to fall, and suggests that the trend towards lower foreign demand may have turned a corner.

British buyers head to new destinations in Spain

A new study from Barclays Bank reported in the Spanish press reveals that British house hunters in Spain are spurning traditional destinations such as the Costa del Sol and Costa Blanca in favour of emerging areas such as Murcia, Almeria, Galicia, and inland regions such as Castilla.

    Kev

Someone please correct me if I'm wrong but Calidona is the developer. I bought through MRI Overseas and I see it as their job to keep me updated and answer all my questions which so far they have done. Did anyone here buy directly from the developer.. ??? if so I think you have genuine reason to go direct to them. If you're like me and bought via an agent then it is the agents responsibility to update you as a client. It seems like there are a lot of agents not doing their job if that's the case. I was unhappy with something at MRI and e-mailed the Chairman Darragh Mac Anthony directly. I had a call from his head of After Sales the very next day. It's your property agent who has the responsibility here!!

Hi Lisa Mona

I to have purchased the property through MRI but clearly have not had the success you have had in getting a response ( personally as we have purchased the property off Calidona, I do not think it is asking too much to ask for a reply to an email or is it? after all the contract is between us and Calidona not MRI). In January I was sent a letter from Calidona saying that the building license for the first properties would be no later than April this year, yet when this failed to materialise no email to explain why, since then its just delay and evasion, with some vagueness about delays at the town hall, but no direct contact with us to explain why, would an email be too much effort?. As you clearly have had success with your responses with regard to the delay, would you mind sharing this with the Forum?

I have just contacted my new regional co-ordinator at MRI as I got tired of waiting for a response to my email ( previous talks with other members of MRI have been vague and evasive), the new co-ordinator told me that they too were not getting information on the matter of the delay from Calidona either, but that he had heard that the license has been tied up in the town hall and not to be overly concerned. Although I am not overly concerned it would be nice to have a clear statement on the issue from the developer

          kev

This message was last edited by kev2 on 6/26/2007.

My advice is forget your regional manager pop onto the MRI website and e-mail the Chairman of MRI directly. Darragh MacAnthony. I would send him a very strong e-mail lsting your grievances. If you look at the MRI brochure they give very specific after sales back up. If they're not fullfilling that you need to have very strong words with them. They are your agent I think it can confuse things if you go directly to the developer. They should be chasing the developer for answers for you. The whole selling point is that you can be secure in the knowledge your interests are being upheld and served as they are your on the ground, in place representatives. Go tough and strong straight to the top!!!! Good  luck