17 Sep 2007 10:23 PM:
Dear Kelju,
If you bought into that development, you have done well. Historically speaking, properties in great locations will appreciate in value in the years to come. Where as certain overbuilt and over supplied areas on the CDS are slowly losing their value, your type of development will not.
Front line beach, walking distance to a marina, historic fishing village, golf course, all amenities, only one phase... How many other new developments do you know of with these characteristics? I for one, do not. So, talk to the developers, make your point. But if I bought into the development myself, I would not walk away from it, no matter if a pool was built or not. After 25 years here, I know what these type of properties will do to your equity in the future. Be happy.
Ivo, asesor fiscal, Marbella
Thread: Apartment complex not to specification and Bank Guarantees
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17 Sep 2007 10:04 PM:
True, a reputable agent will let you deposit your reservation deposit with your lawyer. This happens many times, and should not in any way be an obstacle to completing transactions, as long as proof of transfer (justificación de transfería bancaria) is presented to the agent to present to the vendors.
Ivo
Asesor fiscal, Marbella
This message was last edited by Ivo Worth on 9/17/2007.
Thread: Elegant Homes Worldwide Reservation before they will make the offer
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16 Sep 2007 10:02 PM:
Elegant homes are a member if the INMO network, formally the IN network, multilisting service. All member agents work in this manner. To prevent an avalanche of 'testing the water' type phone calls from one agent to the next, a 6.000 Euro reservation fee has to be paid before an offer is made. If the negociations fail, the reservation deposit is refunded fully.
If there are legal problems your solicitor finds on your property before the 10% señal is paid and a private purchase contract is signed, you get your deposit back. Those are the rules.
The advantages to the buyer is that once the deposit is paid, the listing agent will take the property off the market. Once the vendor has signed in agreement with the outcome of negociations, he cannot now sell his property to someone else for more, even if he has not received your 10% yet. The advantages to the vendor is that someone is making a serious offer with money on the table. The 6K deposit is not paid over to the vendor till notary stage, and stays in an escrow account till the end.
If the property is an off plan, the deposit goes straight away to the developer and is not refundable.
Yours, Ivo,
asesor fiscal, Marbella
Thread: Elegant Homes Worldwide Reservation before they will make the offer
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13 Sep 2007 12:00 AM:
You would have gotten some phone calls, some persistent sweet talk about how marvellous things are over in Spain, and you are thinking of indeed getting on that plane, and have a look. All fine till you get to the other side, and are greeted by your rep. A couple of points:
1: This is a business, and not a cheap way of getting your suitcase stuffed with cheap cigarettes.
2: It is not a way to quickly get a cheap break in a good hotel with a 'Partner'.
3: Because, the terms and conditions on most clever fly by contracts are very clear. If you are caught doing any of the above, you will get the bill. And it's embarrassing.
4: Be at least in a position to buy.
A fly by tour is typically designed to make you buy in the three days you are in Spain. And often it is designed to make you buy a product the agent wants you to buy. So, if you are serious about property in Spain, do your homework before coming over. If you are looking for a finca inland or a villa to do up, make sure your rep shows you these options other than only off plans where he stands to make much more commission. If he is reluctant to show these, he is not helping you and you should not continue with him.
The way fly by tours are designed to make you buy within three days, stems originally from that beloved industry called Time Share. The emotions good reps want to unleash in his/her client are FEAR OF LOSS and GREED.
Fear of loss is generated by simple but effective sentences like: 'I have only two of these left, and I happen to know a colleague will be showing the one you just liked this afternoon.' Painting a very rosy financial picture, and promising a better payment term by a phone call to a person higher up, as long as the desision is made there and then of course is one way to generate greed.
An off plan does not suit everybody, and yet it is pitched to everybody. If it suits you, take an independent lawyer in Spain, never one recommended by the agent, and make sure the off plan product you may be interested in has its licenses and bank guarantees in place. Only when you and your lawyer are satisfied, then go ahead.
To sum up, a successful flyby trip depends on you. Of course you can buy on the first trip out, if you find what you are looking for. It would be silly not to, as good properties do in fact sell. However, you do not have to. And if you feel you are put under pressure to purchase into one of a few developments shown to you, step back and think things over. You will never regret taking a deep breath.
Yours, Ivo, Asesor fiscal, Marbella
This message was last edited by Ivo Worth on 9/13/2007.
Thread: Are you thinking of coming over on an INSPECTION/FLYBY/ Tour?
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10 Sep 2007 12:00 AM:
Dear all,
Lets get a few things straight here. Profit from selling an off plan contract before completion was only possible if you had a very good unit, and between the years 2001 and 2004. Value of a new built was rising enough in those days to off set costs and indeed some reasonable profit could be made. However, in 2005, capital growth in the Malaga region dropped by 7%, and is now in fact around the 4% PA. The famous 'Builders Increases' which would help boost your profits, are now not materialising, and in quite a few developments we are seeing prise reductions. Furthermore, the Spanish government has as good as closed the loop hole which allowed spectulation on this scale to carry on, and are making it very difficult to sell a unit on before completion through changes in the tax code etc. The market has changed, and properties have become a long term investment. And as long as the sun shines here, the Costa del Sol will remain one of the most desirable areas of Europe to own a property, which will show a healthy return in a few years.
There are some great projects out there, and if you are buying, remember a few very logical things, if you want to rent it out, think of the End User: Who is going to rent my property and why? Check what rental market you are going for, and research the net to see what properties can earn in your area. Be aware of the term Guaranteed Rental.
When selling it on at a later stage, you need to think on the same lines. Why would someone buy my property? If you invested into a mediocre product inland, in the wrong location, you will have little chance of renting it out, or seeing a great deal of growth on it. Location, location, location.
Check the re-sale market, as prices are coming down in most areas because of over supply and vendors having made financial commitments out of their reach now with rising interest rates both in the UK and the Euro zone, there are some good opportunities here for the smart buyer.
Yours,
Ivo, asesor fiscal, Marbella
Thread: Buying into offplan? Fine, as long as you can COMPLETE on it.
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