What a good decision!!

According to the new price list 12th Sept 2007 prices have been dropped on the apartments with 50.000 +!! in phase III Not good news for the rest of us who has paid or will be paying the full wack.

Can't anything be done about this????????????

I have just read on another thread the following.

It is also worth pointing out that the latest figures show that Duquesa Village is well over 60% unsold and Coto Real is well over 70% unsold.

 

Hi Maureen

With the current climate in the property market, I'm surprised RyF didn't drop their prices some time ago!  They cannot be blamed for making money out of us!  It's their business!!

At our AGM it was confirmed that RyF still own approx. 60pc of the development - and, hopefully, now that they have dropped their prices, more properties will be sold and the development will become more occupied.

I would still say that, long term, you have a very good investment - and although you see apartments advertised at much less, you will also note that the finish and quality is also much less in these apartments.  I looked around quite alot when we were there in summer and there are many without pre-installed airconditioning/heating (you see the units being installed on their balconies, etc.), and without the quality of interior finish that we have in DV and CR, etc.

I saw your post on the CR thread re BH's prices - you will also note that they are advertising a potential annual rental income of 14,000 euros on a two bed at Coto Real!  I wonder how they arrive at that figure!!  We all know what the rental market is doing!!

If you are in for the long term, you still have a sound investment - and good quality home.

No one can blame the developer for trying to sell the apartments by dropping their prices!  They have a product to sell, after all.

Thanks for the positive thoughts Jan.

I have to keep telling myself it's a long term investment and not to worry.

I read in the 'Town Crier'  (local Estapona area English free rag for those who don't know) that the Estapona area  has over 5,000 unsold but completed apartments.

So it's really not surprising the prices are falling especially as they are still building them like there's no tomorrow.   They just don't seem to know when to stop.

I assume that a 50k euro cut  takes the prices back to 2004 levels.  i.e.  from something like  280k  for a 2/2 apartment back down to 230k.  Is this correct?

They are likely to have to cut the prices again to sell them all.  The demand is fairly inelastic.  These are not cream buns. 

As for rental yields  - I 've seen long term lets on DV for about 750 Euro per month.  at 5% that only values an apartment at 180,000 and that's assuming no agent commission and full occupancy. 

When I shoped in 2003 I was told phase 2 was fully sold out.  London investment guys had bought out whole blocks of these apartments .  But as they were not completed on time and the market changed my guess is that they used their strong legal muscle and backed out of the deals with no penalty.  Hence the number of emply units now in phase 2.

But I don't worry - no point.    I just going to enjoy using it.

i have seen 2 properties in Duquesa Estates in the port from DV for sale at about 220K...and they are still for sale...I think it is typical propery cycle we are seeing. And when there is an upturn we will be ok as the quality is there...hold on

Difference in price list between the october 2004 and September 2007 is a price drop of about 40.000 roughly.

laflauta

Not sure about the Oct 2004 prices.

What is the September 2007 price for the typical  2/2 120 sq m apartment?

It depends what floor and what block, but for instance second floor block 16     253.850   block 17  230.250. They seem to vary between 35.000-40.000 in reduction. A penthouse in block 16 has gone from 308.500 down to 255.600!

Forever the optimists, the Spanish Government have an initiative to revive their housing market !

My feelings are that based on the fact that "Five out of Europe's seven largest construction companies are Spanish. " that just want to go on and on building.

Maureen, if you bought because you love the place and area, price rises and falls are not a factor. Dont forget the UK market fell and left many in negative equity 10 yrs ago. Duquesa Village is very high spec and its quiet location in its own valley has been a plus not a minus when renting out. (I actually turned away 20 bookings this year) The area also has suberb ports and places to visit. It is obvious that there has been alot of building in the area which I do think will slow up as several Mayors are currently 'inside' for various planning irregularities. At least what is being built is not spoilling the place, most buildings are restricted to 3 stories. unlike the concrete blocks built up the coast 30 years ago. I think some people are turning to long term lets rather than sell cheaply and builders will have finance in place and will not give properties away, so cant really see a price crash. The other up side is that it stays very quiet round the pool :-) Many new hot spot locations have emerged since such as ski apartments in Bansko, Bulgaria. As a keen snowboarder I would rather have a place in Holland! Southern Spain has been a Brit favourite for 40 years, and thats not going to change. Kind Regards Andy

Absolutely agree with you, Andy.  Maureen has actually bought in Coto Real and, as you say for DV, the specs are high and one just cannot compare properties just by size and location - you have to look at all the specifications and build quality.

One of the selling points for us was exactly what you mentioned - there (hopefully!) won't be the high rise buildings that you see sprawling along the more northern/eastern coastlines.

We bought long-term and are very happy with our investment.

Andy,

It's very reassuring to hear about the demand for rental.   I don't rent mine adn don't expect to do so (what a luxary !)  but I think the rental potential is  a solid basis for valuation.

I did read the rental rates were moving downwards however for both short term and longer term due to the increasing number of appartments appearing on the market

and with more to follow.

A good test though is,  have  any  of your rental customers expressed the desire to return again next year ?

Allowing for the fact that there is still building taking place - then any qenuinely expressing that point of view is good news.

Paul

Paul

 

A good indicator to back up the facts being broadcast here is that I have been speaking with a RYF sales guy, Chris I think his name is ; and he has sold his property in Casares Beach and is buying in block 8 and moving in soon...so will be a neighbour soon!!!  It cannot be bad if the salesman is buying what he is selling.

interesting points were  made by a holiday tenant to me last Saturday when he was photographing the ´dirty´ pool to report back to his holiday agent was 1. without doubt the quality is top class 2. it is too far from the port to be considered as holiday let but would be best as a residentail area 3. it needs a community area of a shop and cafe to be more holiday let friendly.

I also talked to 3 young guys around the pool one day and they thought the area was too quiet for them and would not be attractive for sa holiday for them again.

To me  all this is perfect and illustrates the reason why I am glad I am here .

Pity I am going home today

 

Maybe we should try and get some sort of transport that runs from the port up to Duquesa Village and the same for Coto Real, any ideas how we would go about this.

Ha ! John,  I am with you on this one.

It seems there are two basis groups of owners.

1)      Owners who wish to maximise the return on investment through  a) high occupancy and b) high rental rates.

2)      Owners who wish to maximise our own enjoyment of  the place which might include a) low occupancy rates and b) peace and quite.

On the whole both groups have mostly common interests in maintaining the quality and standards. 

It may be that owners of the first category have perhaps purchased something a little too far out for some types of holiday users.  However I have to mention that my mother stayed and thought the setting was perfect for a quieter holiday which she now prefers. 

So there are some types of holiday makers who will appreciate the characteristics of DV and it probably matters on how owners promote their apartments to best attract those who will appreciate DV for what it is.   That way they are more likely to attract repeat business.

regards,
Paul

This message was last edited by PMillsom on 9/30/2007.

I think the way to go is to try and let your apartment out to couples and family's, no good letting it to groups of male's or groups of girls,

The young one's these days seem to just want to be on the doorsteps of the night club's and bars, let's face it we were young once so know what it's like.  They would think that our apartments where too far out, but a lot of people just like to have a nice quiete time and enjoy a nice apartment and lots of peace and quiete.

So try aiming for  the over 25's and just couples and family's if you need to rent it out.

Hi Maureen,

When we were at the AGM a lady called Cherith ? (sorry if I got that wrong!) from phase 1 said that at the information meeting last year they were told by Ros Y Falcon via AEA that there was an infrastructure in place to install a path way down from by the tennis courts to Sabinillas alongside the golf course if there was a demand for it.  I don't know how that would link with Coto Real - possibly via a bridge? but it would greatly increase the accessibility to amenities and make the are a more attractive prospect.

I agree - we do need a cafe / bar/ mini market nearby!

Caroline

Thanks for that Caroline, just hope they build that bridge, it would be really handy.  

This message was last edited by leema on 10/3/2007.

Hi

We were told when we purchased that there used to be a footpath through to the beach from the bottom of the village and this was blocked off when the road was put through.  Maria at RyF told us about it and said that at one time everyone protested to get it reinstated.  We offered to join in if they had another protest when we were over!!!  Also, it was mentioned that there was talk of building a supermarket and shops further up the hill.  This might have been mentioned to persuade us to buy but we didn't need any persuasion!!!!