Off plan investments

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This topic contains 4 replies, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 11 years, 4 months ago.

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  • #51065
    Profile photo of mike
    mike
    Participant

    They have arrived in Cadiz and with them the speculators.

    A man in town claims that a year ago he put a deposit of 5 thousand euros on an off plan property but recently changed his mind and went to see the developer who promptly gave him the difference between what they were asking then and what they are asking for the property now, 15 thousand euros more at the current state of development. So, the man has trebled his money in a year. Does this make sense to anyone?

    I seriously worry about the off plan market as it seems the majority are buying off plan for the discount rather than considering ready to occupy property. What happens when someone with a completed property has to sell

  • #58177
    Profile photo of Anonymous
    Anonymous
    Participant

    Mike, I have never heard of any Developer (nor estate agent) offering to treble someones deposit so I would take that with a pinch of salt. They are more likely to keep it and then sell to someone else anyway.

  • #58178
    Profile photo of mike
    mike
    Participant

    @paul wrote:

    Mike, I have never heard of any Developer (nor estate agent) offering to treble someones deposit so I would take that with a pinch of salt. They are more likely to keep it and then sell to someone else anyway.

    Thanks Paul, I was a little suspicious. This was told to me by a third person, not the man himself and something could be lost in translation but in the current market I think people are willing to believe anything, it almost has a goldrush feel to it.

  • #58491
    Profile photo of Anonymous
    Anonymous
    Participant

    We bought a good quality apartment on the Costa del Sol off-plan in Sept 02. On completion last December, marketing was started using 3 agents. Despite numerous attempts and viewings, it has not sold.

    One only has to browse through agents’ websites to see the vast choice that buyers have. Furthermore, with even more new-builds on the way, the situation can only get worse, as the same or falling demand for overdeveloped areas puts pressure on prices and drives them down.

    I agree with another contributor: one only has to use ones eyes to see the number of unoccupied properties, and to see that in newer areas there are very few people about because of the low occupation rate.

    We are considering coming out at a loss, purely to remove the risk of a further downturn.

    Now UK house prices are no longer seeing an upward trend, potential buyers feel less comfortable about withdrawing equity to fund puschases abroad.

    Add to the above the exchange rate fluctuation, ongoing community charges, etc., and it looks like it was a poor decision to invest at that time.

  • #58509
    Profile photo of Anonymous
    Anonymous
    Participant

    Reply to guest

    I agree with you, there is simply an oversupply of similar properties competing with more and more new-build and we know the agents earn more commission from the off-plans than the re-sales.

    I also wonder when it gets mentioned that this property or that has risen 25-40% say, is that just on paper? I think the reality is that it probably would still not sell in the current market.

    Beware expressions when buying from an agent such as :

    Cherry pick the best unit for you.

    You cannot lose.

    Our Directors have bought on this site.

    It’s a ‘no-brainer’.

    And beware Motor Manufacturer awards for being the ‘Best agent’, they ‘buy’ these.

    All Lies told by ex timeshare sales people in most cases

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