ready to complete but exchange rate so bad!!

Hi Verona, so sorry to hear about your predicament.

Its the so called financial experts that have put the world in this mess in the first place so they would be the last people I would listen to!

As far as your situation would go, I would try and get out of the contract but I dont think you will be able to without losing your deposit. Also, getting a reduction looks unlikely. If you did continue with the purchase, will you be relying on rental income to service the mortgage? If so, please dont go ahead!

IMHO, I would swallow the loss and get out now. Sorry, I know this is not what you want to hear but I think its the best option.

Thanks' Eva. A lot of popeople have been giving the same advice.

I would have to rely on rental. I know this is risky, but the one I have now does really well, in fact I've noticed an increase in bookings and enquiries. I think this is down to the fact that people would rather cut back on other things and still go on holiday. I think where people would go and stay in say a 5 star hotel, instead they are now looking at self-catering to cut down on the cost of the holiday, so I think this sector will still do okay.The other thing is I might not be able to get out of the contract without hefty penelties.

although many people (ie the press) keep on painting a picture of doom and gloom on the economy, in my humble opinion the rate is on the up...it looks as if the pound is trying to force its way through some levels 1.13/1.15 but keeps finding resistance.  i think rather than waste the capital you have already placed into the property, it could perhaps be an idea to ride out the storm until the rates come back up to the 1.2s. although i am not an expert on this, i have plenty of dealings with currency and have also been forced to look into it further as moving to spain! have friends in the market and a good currency broker that basically informs me of any changes in the rates that he knows could help me achieve more euros...again, not an expert on this, so please dont attack!!! best of luck. ben

Cheers Ben.

I'd be happy with 1.25/1.30 come completion in about Sept 09. There has been much talk of the euro taking a tumble but it just doesn't seem to be happening at the level I would like. I think the best thing I can do is hope for 1.25 when I put my next chunk down, get a euro mortgage and then hope the rate improves.  Then maybe try and get rid of it if things are tough. It's in prime and sought after location so should sell and hopefully break even.

Cheers,

verona.

Very few developments complete on time anywhere, not just in Spain!

So if Sept 2009 is the contract date ,it is possible that it will be much later before they get the licence of first occupation [ do not complete without it and everthing else] 

All your facilities have to be ready and you need the LFO to be able to connect to electric and water.....never complete in anticipation of the LFO being issued! 

This may help you with the exchange rate as a lot of pundits are saying that it should recover to circa 1.25 in 2009 as per the previous post  and maybe a bit better in 2010......could of course go the other way!

Quite easy to delay completion to suit yourself by wanting everything perfect.!.....may even get a reduction offer if the developer gets frustrated.....happening a lot just now

Thanks Rowlandsbb. I plan on delaying completion for as long as I can or at least till (if) the exchange rate picks up.

Completion should have been March 09. Although most of the complex is finished like the pool, garden, gym, tennis court ect... Our block, which comprises of three strories and about 25 apartments, is the last of four blocks to be completed. When I last went out in February 09 it was just an empty shell with not that much going on. I think they have really cut the work force down and last time I looked only about 45% had sold. Not sure if this will work in my favour or not.

If you have a bank guarantee check to see if the developers are out of time in your contract- your laywer should be able to advise and if they are ,you may be able to cancel and exercise the BG , if the developers do not repay your deposit

That is if you want to .......and you may consider that it's location is good and for the medium to long term it will be OK and you will also get enyoyment from using it

But if you can get out ,bear in mind that just now there are lots of good deals in good locations available at relatively low prices-for ready now most developers are quoting asking prices at circa 25% less for all price ranges

And also lots of good deals on re sales

Just consider all your options!

 Try and find out how many have sold as you dont want to be buying on a community where the developer has so many left over. This could lead to unpaid community fees and he would also have total vetoe at community meetings as the majority voter.

Many developers dont pay community fees so everyone suffers and has poor if any facilities. You sound like you could be out of contract now so check on the penalities and if you can get out it may be an idea to do so and move to a resale unit.

I have been reading the comments about the exchange rate  and I think that in the next two months it will be a little better and we need to get the most for our pound I have been talking to several  exchange companies  and so far the one that has come up with the best quote and information is Excel who are a small company and can do better deals,Someone on EOS mention them so I got in touch with them today and they are just brilliant thanks for that,as we are all in the same boat i wondered if a few of us got together we possibly would get a better rate on our money it seems to me that the more your exchange the higher the exchange rate so we would get more for our money.when I was talking to Karl at Excel I asked about holiday money and the exchange rate he said that they can get a better rate as they buy for about twelve people at a time so get a better rate that way so I think that it could work for very large amounts. When i bought my property the rate was 1.49 and now today it is 1.17 and due to complete soon so it is a lot more money to find and with the credit crunch it is hard for us all,Has any body have any other idea's would like to here from them or had any dealing with Excel and what did you think of them?