Beware of distressed properties on sale

 Legal tip 127. Beware of distressed properties on sale 

Hi Maria,

  Is it still possible to buy a distressed property without getting into deep trouble if the buyer has a good independent lawyer?

Thanks.

I would not recommend buying any distressed developer properties unless you want community headache for years to come.

If you want distressed look for re-sale only and you will know exactly what you are getting into.

"If you want distressed look for re-sale only and you will know exactly what you are getting into."

Ah! But just suppose the seller of this re-sale property falls into Maria's nightmare scenario below, in that the property they are selling was itself a distressed purchase, therefore they are selling a property which potentially isn't there's to sell in the 1st place?

I think from a legal angle you are ok if you buy in good faith .....

But the point I was really trying to make was distressed developer unsold units etc can be absolute nightmare properties whcih soon takes the flavour off any bargain price!

ie - facilities not finished, construction defects, community debt problems

So unless a buyer wants to spend the rest of hs life on this forum discussing his legal position and who is responsible etc I would suggest avoid ...... unless you are some type of speculator.

Faro,

Yes! I agree with you.

I also would not purchase a distressed property from a developer.

If you want a good bargain, then a good re-sale or bank repo is the way to go!

Agreed

Yes i agree it could be very risky i have decided to hold on to my property as it is in a great position and is making me money on the rent 11k per year it would be nice to get capital growth but we are talking 10 years plus its another  pension fund for me so im happy.

Most of these distressed properties are poor developments anyway and the worst units on the development

They have lots of people not paying fees even the banks are not paying the fees i here which makes for an even worse scenario.

Anyone wishing to buy a bargain have a look at this http://www.eyeonspain.com/Property-for-sale-details.aspx?ref=SP1152 its a bargain well established well run community no issues and well built.

Rod

Anyone wishing to buy a bargain have a look at this http://www.eyeonspain.com/Property-for-sale-details.aspx?ref=SP1152 its a bargain well established well run community no issues and well built.

Rod

Wow, that is cheap.  €235 for a 2 bed appartment in Marbella. 

Sanchez well spotted it should be 165000 euros still cheap though

Rod

I find many of the new developments to be lifeless and lacking character - lacking people also - and those you do come across are miserable because of community debt and lack of services - surrounding infrastructure is lacking - ie absolutely nothing in walking distance.

An older development is the complete opposite - friendly people - mature gardens - and generally very few community debts - and plenty of bars and restaurants in walking distance and also the beach is probably within walking distance.

RE....

Anyone wishing to buy a bargain have a look at this http://www.eyeonspain.com/Property-for-sale-details.aspx?ref=SP1152 its a bargain well established well run community no issues and well built.

Faro i completely agree our community is 5 years old and is still improving the main thing is things take time in Spain ,also a good administrator is important to have we have debtors like most communities but after you switch of the water they soon pay or leave

I have seen some really poor built property but if the people pull together its amazing what can be achieved a development called Angel in miraflores was like a communist block of flats when first built but now with hard work it has vastly improved and is doing well.

Many thanks

I believe it's illegal to cut off anyone's water - but that's another subject for another thread.

Many good points made here, especially about lifeless, shoddy and remote urbanisations lacking infrastructure. If you search back through my posts of a few of years back, you'll find I used to bang on about these places quite a bit! I think they are the property equivalent of junk bonds. They are possibly also a large part of the reason the property market went the way it did. (boom & bust)

Very good point too about communities in new developments, especially where there are still unsold units. Nightmare situation, and when the administrator appointed by the devloper is "connected" in some way, potential disaster. Even when the owners have chosen to replace the original admin, it can take ages to sort out all the mess. If you're looking for a bargain investment, stick to older properties in well established areas, and try to find out as much about the community as possible before buying.

Hi Rod,

You say "my property as it is in a great position and is making me money on the rent 11k per year"! Is this through short term lets or longterm lets? 

Angela59

"

Angela

I only go for short term lets mainly because these people tend to treat in my opinion a property better they have a plane ticket to come home you see long term rentors i have little experience of but i here so many people getting squatters in when using third party agents ,and in nearly 100 rents the worst things have been broken crockery my record is 205 days a year but i do spend £800 on advertising

Hope this information is useful

Rod

See if you can pick up some ideas from this

http://www.eyeonspain.com/Property-for-sale-details.aspx?ref=SP1152 

Hi Rod,

I have my property 5 years and have only just started to rent it out this summer and am pleasantly surprised - so going forward I want to try and grow this if possible.  Mainly Finnish people renting even through the winter.  Do you mind or could you recommend any websites to advertise it.   Thanks so much for your help.

Angela59

Angela try

Holidaylettings

Holidayrentals

Homelidays

And a guy is just doing a website for me which should increase my rentals even further ,good quality photos are important if you havent got an eye for it a guy in marbella charges 200 pounds but well worth it and if the weather is no good he will just re-schedule.

www.holidaylettings.co.uk/9160 visit this site for ideas on how to present your ad

Thanks Rod

Hi Rod,

Many thanks for that will take it on board and have a look at those websites - our apartment is based in costa blanca.

Angela59

 Forhotspot:

Of course yes. With the help of a good independent lawyer it is possible to buy great bargains in Spain these days.

Best wishes,

MAria

Angela i almost forgot this site has 30000 members and i have recently subscribed to this so its early days but very reasonably priced here is an example http://www.eyeonspain.com/rentals/holiday/rp4561 Justin the site owner had a Hacienda sale which had a pack of very good offers and info just e amail the EOS team to see if it is still available well worth the money

Thanks Rod