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Hi All, this probably seems a silly question to the Spain-savvy members, but I would would like some info. I have an off plan (Lorca Golf) due for completion probably Spring '08. Since the original purchase (have paid only the first 15%) I have become self employed. I have a self certification mortgage on my family home but I think obtaining a mortgage on the Spanish property could be problematical. So - if I try to sell prior to completion would I need to arrange a mortgage first, so I actually own the property outright, or could I sell it and then pay the developer the balance from the sale retrospectivly?
Thanks in advance!
Dixie
_______________________ Dixie
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Dixie,
You don't need to buy any more equity. You can simply sell your interest so far and let the buyer finalise the purchase later. First check to make sure there will be no transfer costs from the developer, if so you'll need to add them your selling price if you want to recover all of your money.
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You also need to check that your contract actually permits you to sell before completion - some developers won't allow it at all. You will also have to allow for agents fees if you want to sell through an estate agent. Have you spoken to the agent you bought from to see if they can re-sell it for you?
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"Get your facts first, then you can distort them as you please"
Mark Twain
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Thank you Roberto and failed golfer! I specifically bought on Lorca Golf (as opposed to Corvera) because the contract clearly states I can sell on before completion. There is a 750 euros fee. Since my original post I have received a long email from the salesman. He advises waiting a few months before trying to sell as by then more will have been happening on the site in terms of landscaping and building, which will make the apartment a more attractive proposition for a buyer.
I was hoping (as you do!) to make a little profit but the 'doom and gloom' reports are a bit scary. My salesman says Costa Calida has a healthier market than Costa del Sol, but then he would say that, wouldn't he. I have paid my first 15% and the next instalment is due in a few months, so I'm thinking of bailing out before then - and investing the money in the UK!
If you have any more wisdom to share, I would be grateful!
Cheers,
Dixie
_______________________ Dixie
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Dixi the salesman was probably right. And I would say also right to wait a while until more progress on the site, also that would take you into post Easter the main buying period.
"I was hoping (as you do!) to make a little profit but the 'doom and gloom' reports are a bit scary. My salesman says Costa Calida has a healthier market than Costa del Sol, but then he would say that, wouldn't he. "
I notice loads of people who buy a property off plan then want to get out, I´m sure some don´t think things through enough before they committ to a purchase. The consequences of such flipant decisions are often considerable loss of money.
I know peoples circumstances change but a little more forethough could help stop all these cancellations. From the builders point of view they have to find new buyers for these properties and probably missed the chance of buyers on these cancellations.
I think builders should penalise people by retaining at least 50% of deposits/payments for the inconvenience.
I am a buyer not a builder but I do consider all eventualities before I commit to buying.
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Hi Dixie
Our experience and hindsight says make sure you don't leave the decision too late.
Our developer was so far behind the building/contract schedule that buyers (with 50% deposit paid Woolfie) were offered release from the contract and return of deposits (16months ago).
They then instituted delaying tactics with our solicitors ( who were also ineffective) until the physical buildings were up. 6 months ago the developers refused to repay any deposit on the basis that the properties are now built. Also refuse to honour agreements to sell on contracts - citing high administrative costs and the fact that the properties are built.
Still no infrastructure - roads, lights etc and no way near completion. Stuck. get out while you can.
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Jane
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Hi, I would echo the sentiment that it is prudent to market the property sooner rather than later as in circumstances such as yours you simply wish to dispose of it before Completion and hence time is of the essence. In addition, you have noted that you have the right to sell before Completion and you should also cosnider that if you make a profit this may attract a tax liability in the UK and Spain.
Best regards
_______________________ Glyn D Gerard Moran
Partner - CB Legal & Fiscal Consulta...
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Thanks again everyone. I had assumed that marketing from April/May onwards would give me the best chance. I didn't make a mistake on this Woolfie, (apart from perhaps being drawn into blue-sky, over optimistic profit calculations from MRI!) Both the developer and MRI were aware that this was purely an investment purchase that I would want to dispose of before completion. I'm only looking to sell on earlier than expected because of the current market slow down. The developer has suggested that the two best times to market the apartment would be either 3 months before the second 15% is due, when the golf course will be complete, building at an advanced stage and also the new motorway and airport underway, or 3 months before completion, when there will be show homes ready to show potential buyers. He also suggests that the current list price for my apartment is around 30000euros more than my purchase price, so who knows, I may make a bit, though as Glyn says, the taxman will want his share!
So if anyone wants a 2 bedder at Lorca let me know!!
Cheers,
Dixie
_______________________ Dixie
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Hi Dixie
I don't want to dampen your optimism, but I have posted this caution on other threads. In the Murcia area, the gov't focus on increasing tourism to boost the economy has seen many, many golf developments. Most of these are delayed leaving investors who entered the market at the hight of the boom realising that the market will soon be flooded with disillusioned investors wanting to recoup their money. There is huge over supply.
A member of my family has just agreed a sale of his off-plan house. The developer's price has increased significantly since 2004, but the actual sale price is at the 2004 level. There are thousands of houses yet to be completed and, as yet unsold. The pressure to sell on below developers prices is enormous, if you want a quick sale. Wish you luck.
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Jane
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Thanks apartamento, I have certainly picked up the points you mention (and the water supply issue) on my internet trawls, hence my decision to jump ship sooner rather than later. I'm now going to contact the developer to see if he will market the property for me. That should encourage him to put his money where his mouth is! I'll also contact the agents, MRI, though frankly I have found them to be about as much use as a chocolate teapot. I've received several calls from them encouraging me to refer friends to them (and get a free furniture pack - yippee) but when I try to discuss lack of progress on the site or poor returns they seem to suddenly lose the art of conversation.
I'm sure there are hundreds, if not thousands of people in my situation, so I'll post when I have more info.
Thanks again,
Dixie
_______________________ Dixie
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Good luck with it Dixie!
You will find that althought he developer will list the property, he will not push it as will have loads of his own to sell as well as other resales!
You will also find that should you get a private buyer, access to the property will not be allowed as technically it is still owned by the builder until you complete and it is against health and safety to allow laypersons onto a building site - invalidates the insurance as wells.
It may be worth your while advertising privately and good luck with it.
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Quite frankly m'dear, I don't give a damn!
www.herbalmarbella.com
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Thanks for the good wishes Rixxy. MRI won't market the property until about 5/6 months prior to completion - and would I trust them anyway?? The developer reckons the two key points to market are 3 months before the next 15% is due, as the golf course will be completed and the building actually started, or 3 months prior to completion, when obviously they can show prospective purchasers a show apartment. Investments are always a gamble and deciding the best point to cut loose is the most difficult bit!
Even so, the Lorca problem doesn't seem so bad when I read of all the appalling things happening to people on EOS.
Best wishes,
Dixie
_______________________ Dixie
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Hiya Dixie. I could reply to the answers you have been given but I reckon my outpourings would cause Justin to delete it!
Good luck
_______________________
Quite frankly m'dear, I don't give a damn!
www.herbalmarbella.com
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Well i would appreciate your outpourings Rixxy, as I'm sure would others in a similar position. So could you take a deep breath and write in restrained tones??
Cheers,
Dixie
_______________________ Dixie
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Hi Dixie
Im in a similar situation to you as brought 2 bed apartment on Corvera Golf and Country Club off plan as an investment, with right to sell before completion. Due to be complete June 2008, now delayed for a year, but was thinking of sticking with my original plan of selling before June 2008.
Was wondering how you were getting on selling yours as this thread seems to have dried up in May, Did you manage to sell your property and if so where did you find the best place to advertise or did the developer finally do this for you?
Cheers
Keith
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