New Site Live!!!

This is a really positive site and I am loath to introduce this stark question.  However, having bought a Phase 3, ground floor, 2 bed in May 2005 (for investment purposes) and secured it with Euro 85,000, I am wondering, if I proceed, I am ever going to get this 85k or any other future monies back?  We are due to complete on Jan. 23 2008.

The oversupply of units built in Spain makes resale virtually impossible and rental of our unit is another leap of faith.   I feel that the apartment will not appreciate any more over the next 5 years, during which time we will have invested another €60k with mortgage repayments, furnishing etc.

I am convinced that Roda is a beautiful product, maybe even the best in the region, but that's not the issue.  It’s the general market that has fallen apart since we bought.  Should a person in our circumstances fold now and walk away or is that crazy talk?  I would have no problem walking away and taking the hit.

Any thoughts?

Shirley & Luke, Ireland

I know that we have communicated off forum but I would like to make general comments for all

First of all I will not benefit from any comments, I do not sell property, I am not connected directly with RODA and we work independantly providing our inspection services

I can also speak as a person that owns property on another resort in the Alicante area, which I have been trying to sell, for the last year, without success

I have to agree that the market is down, yes supply outstrips demand however there are still people that are regularly renting their properties, really by smart advertising and promoting

In my own case yes rentals were down last year but I still managed to cover the mortgage and maintenance fees but this year I have found a long term renter who will be renting for 8 months, which was actually quite easy to find

Fact RODA is an excellent resort with a fine golf course, and it is well located as it has easy access to local bars restaurants and the beach unlike the group of Polaris World resorts and I belive that there is potential for rental income

Smart  marketing of the property is key and by this I mean making the property details available to friends and family, getting them to pass the deatails on, offering incentives if they get bookings for you and this is a low cost route that works, in my own case 14 weeks rental last year came via this route

One other idea is I have an arrangement with a local golf shop that gives me preferencial green fee rates which I can pass onto renters as they often want to play multiple courses and saves them between 10 - 30 euros per round

RODA certainly will enforce the legal contract and in a court case you will loose both deposits and costs so I would not be happy to write off that amount of money

I still believe in this resort  and I agree that there may not be an immediate return and I estimate that we are looking at another 3 years before the market comes back but I am not concerned in covering the costs on my own properties over that period

Hi

If you purchased  the appartment as a short term investment the answer is to sell.At present there is a glut of resales,2 bed appartments at around 200,000 euro are not hard to find.If you check the rental sites you will find very few success stories .There seems to be a delay in the building  the final phases which I suspect could be due to a lack of sales as the market slows.I believe Roda property will command a premium when the hotel complex and resteraunt areas are complete.The question is when???At present I am staying with it and am optomistic that when the facilities are complete Roda will offer a reasonable return in 3 to 5 years.

Tom B 

Thanks Tom and Roy and to those who emailed me offline.  I really appreciate you taking the time to let me have your comments.  75% of replys were for sticking with the property and completing and 25% against.  Got some thinking to do.

Thanks all.

Shirley