Should I buy or run?

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This topic contains 32 replies, has 14 voices, and was last updated by Profile photo of peterhun peterhun 7 years ago.

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  • #55240
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Everyone,

    Trust you are all well. 😀

    I haven’t posted on here for a while but looking for some valid advice and possible pitfalls.

    I’ve found an apartment in Corralejo, Fuerteventura. I’ve always been attracted to the place – love the weather and watersports.

    The original asking price (2years ago) – I bed on complex with mature gardens and great pool was E118K. Most sold but some back for sale due to purchasers unable to complete. – they lost their deposit. A pool facing, 2nd floor unit has been offered to me by the developer at E86K.

    So my question is really this? If original price was E118 and deposit lost was 30%, then some poor sod has lost E35.4K.

    Add this to offered price and today’s actual sale price becomes 86 + 35.4 = E121.4K

    In other words, the developer is achieving an overall higher price than 2 years ago.

    Any advice about buying. The pound is falling! – so I’ll pay cash – not a mortgage, but still don’t want to get burnt. Also,the original purchasers are never going to achieve K118 ever again if they want to sell. Possibly E80K, but who knows? How much have prices fallen in two years?

    How would you go about making an offer of, say E65, and still be taken seriously?

    Or – should I just run away?

    Thanks

  • #94551
    Profile photo of Anonymous
    Anonymous
    Participant

    Make an offer for €65k and be ready to run if the need arise.

  • #94553
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Shakeel,

    Good to see you’re still active on this Forum.

    I was sitting in the cinema tonight (Julie & Julia – highly recommended) and I thought – ‘Go in low’. So I’m going to offer £50K.

    As you say – Go low and prepare to run.

    I have a real worry that things are going to get really bad next year. Rising interest rates, job loses, increased repros, QE, job insecurity, increased taxation and falling house prices. What’s happening at the moment is just ‘sticking plaster’ to keep the economy afloat. I see this recession getting a lot worse.

    So going low.

  • #94554
    Profile photo of Anonymous
    Anonymous
    Participant

    maximus, they (developer) won’t go lower then their outstanding loan; probably the 80k mark !!! if you like it buy it with their mortgage and wait for pound to rise?? is it going to??

    the main danger is that the developer hasn’t sold as many as they say; that they are running out of money and will soon have the unsold units repossesed (due to happen at end of year to 100,000 developers) – get them to demonstrate sold units – it’s important to have community fees paid so the complex doesn’t sink!!! more important than trying to get it for nothing !!

  • #94555
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Ubeda,

    Thanks for the reply.

    There are 112 units. 30 remain unsold – these being without pool views and being offered for about 70K. My understanding is that nothing has moved for the last 12 – 18 months. The community seems to be up and running – fees are about E80 / month. There is concern / annoyance that some residents won’t pay the fees (usual story I guess!).

    The development was completely refurbished 3 years ago – as I understand it, there are developers mortgages on the unsold units, which get cancelled when you buy. Is this normal?

  • #94556
    Profile photo of Anonymous
    Anonymous
    Participant

    Just a quick after thought.

    If developers / sellers won’t go below the charges outstanding on their properties, then when repossession occurs, they are in danger of losing a lot more – possibly complete bankruptcy, as the lawyers will have a field day and the costs will be placed upon the vendor.

    This is a paradox. The free market is not being allowed to operate.

    If you had invested in shares and they take a hit, you would just sell and shrug your shoulders – a bad ivestment decision. Property, however, seems to be treated with a completely different sentiment, even though it is looked at as an investment.

    Does anyone agree with this?

  • #94557
    Profile photo of Anonymous
    Anonymous
    Participant

    Properties are like the opposite sex. When you meet them you think they are just perfect. Until such time one is dumped. Than you meet the next perfect one & you think they are the perfect one & so on. Finally when you look back on life you will realise that none of them were perfect.

    You are the buyer & therefore you are the King. If they dont agree to your price you walk away. So will there will be another one round the corner.

  • #94558
    Profile photo of Anonymous
    Anonymous
    Participant

    Properties are like the opposite sex. When you meet them you think they are just perfect. Until such time one is dumped. Than you meet the next perfect one & you think they are the perfect one & so on. Finally when you look back on life you will realise that none of them were perfect.

    Shakeel – So true !

    (I guess it’s just part of life’s colourful lottery) 😆 😆 😆 😆

  • #94559
    Profile photo of Anonymous
    Anonymous
    Participant

    And Yes – You’re right. I have the cash and so am King.

    I think 50K is quite enough for a bit of ‘air-space’ in the sun.

    I’ll keep you posted! 😉

  • #94560
    Profile photo of Anonymous
    Anonymous
    Participant

    Maximus: I am pleased that you could see the parallels.

  • #94575
    Profile photo of Anonymous
    Anonymous
    Participant

    @maximus wrote:

    Hi Everyone,

    Trust you are all well. 😀

    I haven’t posted on here for a while but looking for some valid advice and possible pitfalls.

    I’ve found an apartment in Corralejo, Fuerteventura. I’ve always been attracted to the place – love the weather and watersports.

    The original asking price (2years ago) – I bed on complex with mature gardens and great pool was E118K. Most sold but some back for sale due to purchasers unable to complete. – they lost their deposit. A pool facing, 2nd floor unit has been offered to me by the developer at E86K.

    Thanks

    If it is not in St Valentin or other junk old resort, 50K should be OK for Corralejo.
    Myself I would prefer in Costa Calma, MOrro Jable or El Cotillo, but COrralejo also has nice beaches.

  • #94577
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Flosmichael,

    Yes – I know exactly where you are coming from on this one. There are some pretty awful, old developments in Corralejo. Some of them are looking so run down . The place seems to be getting quieter and quieter these days. The agents and hotels are relying on more cheap flights going to the island – but in all honesty I wonder if the days of these bucket seats are over. Flight prices can only go in one direction as demand for oil increases (China, India) but supplies start to decline, and I do’t think the price will be down!

    But if you are into year round sunshine and water sports then flag beach is the place to be. Not too keen on Cortillo, and havent looked elsewhere.

    Hence I’m going to go in low. I’ll probably get laughed at – and then I’ll walk away.

    As we all know – money is hard earnt and easy spent!

  • #94635
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @maximus wrote:

    The original asking price (2years ago) – I bed on complex with mature gardens and great pool was E118K. Most sold but some back for sale due to purchasers unable to complete. – they lost their deposit. A pool facing, 2nd floor unit has been offered to me by the developer at E86K.

    So my question is really this? If original price was E118 and deposit lost was 30%, then some poor sod has lost E35.4K.

    Add this to offered price and today’s actual sale price becomes 86 + 35.4 = E121.4K

    In other words, the developer is achieving an overall higher price than 2 years ago.

    Hi Maximus, not going to argue with whatever you choose to put in. That’s your right (best of luck by the way).

    But there is something you did not take into account in your calculations.

    If it was originally sold for 118,000€. The real estate agent (if one was involved) would have been paid their commission. If we assume it was 5% (yes could have been higher, but a vast majority of developers charged 5 or less) then the agent would have taken 6,844€ from that 30%.
    so possibly 86,000 + (35,400-6,844) = 114,556€

  • #94650
    Profile photo of Anonymous
    Anonymous
    Participant

    Think I know which complex you are referring to maximus. We thought about purchasing too but the best apartments were taken at that time. let us know how you get on. I’m looking at a couple of places next week in one of the other “junk” resorts.

  • #94652
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Villan,

    I’ve just started the negotiation process. Basically I’m saying – look this is the position with the UK economy, this is what’s going to happen to the economy next year with increased taxation, terrible exchange rate, falling house prices, lack of credit etc and this is my budget. I’ve really done my homework on this one, so feel pretty confident that if the vendor says ‘Yes’, I won’t get shafted.

    You need to be aware about some of those other Communities. One’s already collapsed and others are in trouble.

    I’ve sent a pm.

  • #94656
    Profile photo of Anonymous
    Anonymous
    Participant

    Sounds like you have got your heads screwed on Maximus.
    Good Luck.

    PM Reply sent.

  • #94657
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Villan,

    I think I’ve covered all the potential pitfalls, but only time will tell!

    I’ve sent my contact details.

  • #94658
    Profile photo of Anonymous
    Anonymous
    Participant

    maximus: You have done what as sensible & prudent person would do. I pray for you that all goes well. I use the world pray as only the divine can smile you, this is the lottery system that we have in Spain.

  • #94706
    Profile photo of Anonymous
    Anonymous
    Participant

    Well, the offer is in !

  • #94723
    Profile photo of Anonymous
    Anonymous
    Participant

    And……….

    The offer’s been rejected.

    Apparently there are loads of people suddenly after this property. A bit odd because it’s been available for the last 18 months! 😕

    Time for a period of silence I feel. 😉

  • #94724
    Profile photo of Anonymous
    Anonymous
    Participant

    You are playing it right Maximus. As a cash buyer you hold all the cards. The worst thing that can happen is that you look elsewhere.

    Keep us informed. 😀

  • #94733
    Profile photo of Anonymous
    Anonymous
    Participant

    I received an email today and, after very careful consideraton, they are prepared to offer me a lower price providing I proceed very quickly. They have other clients desperate to buy on the development, but who need time to get their finances sorted.

    The reduction is…………

    E 3,000 😆

    This brings the price down to E 83,000.

    I don’t think I will reply to this email for at least a week.

  • #94734
    Profile photo of Anonymous
    Anonymous
    Participant

    Post I nearly wrote yesterday:

    Maximus – I don’t think they’ll let you go that easily, they’re busily thinking what to do with this fish on the hook.
    So what’s the betting you’ll get a call to say that an offer has just fallen through and that they’re prepared to consider your offer for a quick sale if you’re prepared to make another offer closer to the asking price.

    Well, I was close-ish!

  • #94735
    Profile photo of katy
    katy
    Spectator

    I think maximus is already reeled in 😉 Lots of other clients waiting…..yeah 😆

  • #94804
    Profile photo of Anonymous
    Anonymous
    Participant

    So 80,000 euro is near the top of my duget, where do you go for the 50,000 euro condo ?

    Thanks

  • #94852
    Profile photo of Anonymous
    Anonymous
    Participant

    Guess what?

    I’ve just had an email asking if I’m still interested in buying as I’ve gone a little quiet recently!

    My reply was that – ‘Yes – I really love the apartment and want to buy it, but I am having difficulty raising more finance because the bank doesn’t consider Spain to be a good investment at the moment (great big lie 😳 ), however, I still have £50K in the bank.

    Oh dear – I’m turning into the sort of person I really don’t like!! 👿

  • #94853
    Profile photo of Anonymous
    Anonymous
    Participant

    Don’t worry about it Maximus – you gave the perfect answer.

    The temptation to accept your cash must be driving them insane, they can smell your money.

    Keep holding on……and if you end up getting it for 50,000 you will have become the type of person we all admire – screwing the developer down to a realistic price.

    Remember all the lost deposits he’s happily pocketed, he’ll still be quids in with your 50,000. Hold on to that thought when the next e-mail arrives.

  • #94856
    Profile photo of Anonymous
    Anonymous
    Participant

    maximus

    good luck, and bargain hard!

    Have you considered turning the tables, and telling them you have 2 or 3 to choose from at a similar price, so need an answer fast?

  • #94872
    Profile photo of Anonymous
    Anonymous
    Participant

    That’s what I’d do…. 😉

    Two can play at that game.

    Andy

  • #95030
    Profile photo of Anonymous
    Anonymous
    Participant

    I received an email this morning, the tone of which I did not like. It seemed pushy and rude.

    My reply – told them to ‘take a sexy journey’.

    My flirtation with the Spanish Property market has ended and I’ve come to my senses.

    Renting is the obvious answer.

  • #95031
    Profile photo of angie
    angie
    Spectator

    It’s proof that the greedy Developers/Agents are still using the same pressurised tactics in Spain.

    Maximus, why don’t you post their email here on the forum and some of us can submit offers too, so they know what it’s like to mess people around, then we can all withdraw! 😉

  • #95041
    Profile photo of Anonymous
    Anonymous
    Participant

    Great idea Angie. We can than pretend that we are gazumping each other.

  • #95048
    Profile photo of peterhun
    peterhun
    Participant

    Its going to take a long, long time for things to hit the bottom. Five years.

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