JeansSis' 1000th post !!!

Dave

That sounds a bit disconcerting but CAM are actually offering mortgages of 80% on these properties (which is quite a high % in Spanish terms) so it seems strange that they'd lend 80% of an inflated value.  Also, Palmera are advertising them as re-sales at considerably more than we paid.

Keep us updated.

Maxine

Just another thought, Dave.  You're sure the valuation your are talking about isn't the insurance valuation?  The insurance valuation is considerably less than the property value as it covers for rebuilding costs which are less than the resale value.

Hi Everybody,

Surely the valuation depends on the purpose for which it is obtained.

Palmera has a vested interest in suggesting that the valuations are high - it justifies the price we paid and makes us believe that we have profited from the purchase.

The Bank offering the initial mortgage justifies its decision to lend with a high valuation but is comforted by the fact that we have put down a substantial deposit and have demonstrated further our financial clout by paying substantial sums in Agency fees ang IVA.

A bank valuation for other purposes may well take a harsher view of the value of the property because it wants to protect the bank's interests. Little or nothing will be included in the valuation for fixtures, fittings or furnishings.

I think we all want to believe that we have made a few bob by exercising our financial genius and buying at Mirador de las Palmera but look at the facts - Why would a builder sell you something that was guaranteed to be worth more than what you paid for it? I have no illusions that Palmera/The Builders priced these apartments in 2003/2004 on what they thought the would probably be worth on completion. There is no way such a science can be exact so obviously we stood a chance of a profit but equally we ran a risk of a loss.

Property development is a big business - if they knew prices will always spiral upwards there is no way they will sell off plan - they will finance the development themselves and sell on completion. Off plan sales means that we financed a significant chunk of the development costs it did not mean that we were guaranteed to share in the profits.

IN THE SHORT TERM WE WILL NEVER KWOW WHAT THE TRUE VALUATION IS UNTIL A FEW HAVE BEEN SOLD AND THE WORD ON THE STREET FILTERS BACK TO US.

Personally I am pleased with my purchase and I do not really mind what the valuations suggest. If you want to live in a new apartment in Spain the price paid strikes me as good value. Whether I will say this next year as more facts are to hand is another matter.

Regards,

Malcolm

Hi All

According to the spanish government website, apartment prices have continued to rise since 2004, however, the growth rate has been steadily falling from approx 15%pa to 5%pa in the Alicante region.

I guess this will not improve until the UK market improves.

Dave