TOWN HALL TAXES

Hi everyone!

I have registered in this site for a couple of months ago but never posted before. Thank you very much for all the updates, tour reports, and the pictures.

As everyone is, I am worried about the loss that we will experience when we close the loan at the completion of the property.

Would anyone help me out to calculate how much capital reserve we need to hold the property until it gets on the tract? The financial strategy from the meeting with MRI was under the assumption that the propery would appreciate.

I read from a previous posting that Portofino has not appreciated at all from 18 months ago. Although, MRI told me that my unit went up 30,000 Euros over 6 month period when I spoke to them about 4 months ago. Does it mean we will end up paying for the furniture package, some or all of the closing cost, community fees for many months to years, and/or  mortgage payment that will be short from the rental?

Would it be better idea to walk away by loosing the deposit? Am I being too passimistic?

Any comment is welcome.

My view is that if you bought in Portofino as an investment then hang on and it will be a good one. What we are not going to have, perhaps, is the sell it quick and make a fast buck scenario.

If we can get 12 - 15 weeks rental per year I would consider that pretty good, it will help to offset some of the costs involved in owning a little peice of Spain.

I suppose we all have to ask ourselves just what our motivation was for signing on the dotted line. As for the values a quick trawl of inmobilaria sites yealds a range of different prices, for us it doesn't matter because we were never going to sell straightaway but bought as an investment for the longer term.

MRI are in the business of parting people with their money in the same way as any other estate agent but they do not always have the genuine interests of the customer at heart (unlike a smaller EA who might forge friendships with customers).

Arbitrarily walking away and forfeiting the deposit does not seem like good business to me, better, perhaps, if it has become more than can be afforded, might be to at least try to sell the unit before completion but the chances are that when this development is complete values will rise, especially with a 5* hotel next door, 3 golf courses and a rowing lake not to mention the marina (even if this does not get expanded). Almerimar will be kicking.

This is only my view though and I wish you well with your deliberations.

Thank you, noelandwilma, for your thoughts, especially, reviewing the positive sides.  

Real estate market is always at some point on it's cycle. Almeria sounds like it is at a down turn.The curve surely will go back up but calculating out what will take to endure the course will be the key to determine the exit strategy.   

It will be a great help if anyone chime in for the information as follow. I live in US. It has not been very easy to catch people in Spain to get all the info.

1. Current mortgage situation -interest rate, LTV(Loan to Value, What is the maximum amount does the bank lend?), what is your thoughts on the brokerage who works with MRI? I alreadt paid them to look for the loan when I signed to purchase but is there any better service I should look for?

2. What is practical rental rate assupmtion?  Is noelandwilma's assumption of 12~15% rental pretty conservative number? Is rental price what MRI says realistic market price?

3. Are you all going to use MRI rental service or look for alternative choice as someone (Sorry I am still not remember everyone's ID yet) posted before?

4. Does anyone know how much we will pay for the community fee in a worst scenario?

Any comment is greatly appreciated.