- October 23, 2007 at 9:47 am #53422
Can anybody give me an idea if this is a potentially sound investment. Can’t seem to find much about it having tried some research. Look forward to your answers.
- October 23, 2007 at 10:00 am #75759
This may be helpful, Diane:
‘Housing developments linked to golf courses are to be banned as part of new regulations being drawn up by the Junta de Andalucía……..’
- October 23, 2007 at 10:28 am #75760
Football village? Hmmm.
Apparently if you turn up at the site it costs less to buy than if you purchase through the heavily-marketed UK operation.
So, here goes a rather opinionated estate agent’s view of the promotion:
Is miles from anywhere that most folks want to be when on their hols and bear in mind that most players when they take time off tend to head closer to Puerto Banus as that’s where they’ve been going for years (always here from around May 17th for 2 -3 weeks). If you don’t mind sitting by the pool next to the rellies of some junior player then fine.
In my opinion the Football Village is just a load of 2 bed 2 bath boxes dressed up in expensive pink marketing frocks to make them look sexy.
- October 23, 2007 at 10:42 am #75761
😆 😆 Where is it? near all those other 2/2 boxes that are seen from the toll road at the back of Estepona?
- October 23, 2007 at 10:48 am #75762
- October 23, 2007 at 3:14 pm #75769
And the footballers who have been given one or two to help promote this development will be renting them out – no way will they stay there!
- October 23, 2007 at 4:57 pm #75770
Here is a quote from their website:
1. Potential for Off-Plan pre-completion gains
Buying off-plan offers investors the maximum potential for quick gain. Off-plan developments are usually discounted due to the speculative nature of the investment and typically grow strongly in value once the property and the surrounding development is completed. The investment is also leveraged. As an investor, you can enjoy a low deposit of just 20%, but receive capital growth on the full 100% of the property value.
Buy 4 x EUR250,000 (£170,000) apartments off plan for a deposit of £136,000
The total value of the 4 properties is £680,000
Property prices rise by 20% during the 2 year build period
The total value of the 4 properties is now £816,000, a profit of £136,000
This represents a 100% return on the original investment of £136,000 over 2 years. In many cases initial investors never have to fully complete on the properties. You are free to sell on before they are fully completed.
Not only illegal but thoroughly misleading.
1) Agency fees to sell at 7% + IVA (8.12%)
2) Legal fees of 1% in and 1% out + IVA
3) Capital gains tax of 18% on the gain?
So, let’s see:
1) Agency fee = 66,259£
2) Legal fees = 18,931£
3) Tax = 24,480£
Total expenditure 109,670£
So, actual profit of 26,330£ on a potential exposure (if forced to complete, so add 12%) of 761,600£.
Madness, utter madness.
- October 23, 2007 at 5:22 pm #75771
So Diane, what do you think of it so far ❓
- October 23, 2007 at 6:04 pm #75773
- October 24, 2007 at 10:37 am #75780
i don’t think there’s any suggestion that footballers will be staying there!!!! The reason for the football bit is an academy promoted by Paul Robinson, England GK.
- October 24, 2007 at 11:12 am #75782
Not looking good so far! Not at all bothered about footballers staying there – the only thing that interests me is if I will make money out of it. It’s purely an investment for me.
- October 24, 2007 at 11:40 am #75783
sdodgson – sorry but what is the 12% added, if forced to complete – am I missing something. Also the quote from their website, can you please explain why it is illegal? Thanks.
- October 24, 2007 at 11:41 am #75784
It’s purely an investment for me.
I think sdodgson has illustrated perfectly the wisdom of such an ‘investment’.
You are better off putting your money in a high-interest savings account, sitting back and watching the ‘show’ that unfolds on this one.
The biggest porky-pie in their marketing blurb?
“In many cases initial investors never have to fully complete on the properties. You are free to sell on before they are fully completed”.
Ask them if they are prepared to provide a written guaranteed ‘buy back scheme’ on that, to include the 20% return over the two years. 😆
- October 24, 2007 at 12:34 pm #75787
Sorry – cant be bothered to look at their website – but have they informed people that in order to sell on they will have to pay 7% transfer tax on the full amount AND the 18% capital gains tax on any profit???
I think not – and thats WOTHOUT looking – so apologies if they have mentioned all that and I am head bowed in the wrong!
ps the 12% would relate to your average purchase copsts including purchase tax, lawyers fees etc
- October 25, 2007 at 9:41 am #75832
I know a little bit about this development, which I think is probably the best selling thing on the CDS at the moment. It’s part of the much larger overall Valle Romano development http://www.valleromano.es/portada.aspx
Anyone interested should of course do some research and go and see the site etc. Some posts on this thread just seem to want to put people off without actually having any knowledge or information.
The tie in with the football clubs is a way of promoting the development to fans of certain clubs, that may not otherwise have bought overseas or attended a property exhibition. It’s a bit of branding really – buying a property in conjunction with a brand that you trust.
I understand that all due diligence has been completed between the clubs and Valle Romano. I think that the danger of bad PR is far higher than any potential gains for the football clubs, so they would have been keen to ensure that this was a safe development.
I don’t think that anyone ever expected the place to be full of footballers on holiday, but I think that the clubs do have some obligations to use the facilities once completed. At the moment many use La Manga, for example.
The Football Village apartments are tourist apartments so they will have a management scheme and a proposed guaranteed rental scheme. There is going to be a 5 star hotel that will also be renting apartment units. I think this is similar to the way that you can book apartments managed by the Hotel at La Manga.
Because of their “turistica” status I understand that the IVA is reclaimable in the tax year following completion.
There will also be an array of sports and leisure facilities – the golf course, football academy, spa etc
I have been to a presentation at West Ham, and I have been to the site. I like it and I like the way that the company conduct themselves – it’s not a very hard sell and there’s no inspection trips dragging you round to 25 developments. If you want that experience then give our “friends that cannot be mentioned”, or one or two others a call!
All IMHO of course, and DYOR, as always !
- October 25, 2007 at 10:06 am #75834
Arrrrrgh, I can smell spam 👿
- October 25, 2007 at 10:20 am #75836
‘Knowledge & information’ courtesy of typically spanish:
‘Housing developments linked to golf courses are to be banned as part of new regulations being drawn up by the Junta de Andalucía
A new decree being drawn up by the Junta de Andalucía will allow for more golf courses to be built in the region, but only when they are public and not as part of any housing development. They will also have to comply to current regulations, and use only recycled water.
The new regulations will only allow the presence of hotels and leisure facilities in the new developments. There will also be protection stopping any current golf courses being used at a later date for building land.
News of the new proposal has been published in El País, but the paper notes that as yet there is not date set for its approval.
There are currently 95 golf courses in Andalucía. The municipalities want to construct 300 more.’
- October 25, 2007 at 11:45 am #75840
I see nothing wrong with the concept of the project; however I have raised the issue of the refund of IVA (or VAT) and to date not received a reply.
My understanding is that you can reclaim IVA up to five years on any monies where you have charged IVA i.e. rental income. The same way as UK businesses (who are registered) can claim.
However, let’s look at the numbers; let’s say the property costs 280.000 euros, the IVA at 7% works out at 19.600 euros. This means in order to claim your IVA back you would need to generate rental income over the next five years of 280.000 euros or 56.000 euros a year (or more). Because you are claiming IVA, you will also be subject to local taxes and require a “gesteria” – tax accountant.
I would expect the most optimistic would question whether it was possible to generate rental income in excess of 1.000 euros per week every week for five years.
Incidentally, I was due an income tax refund in June 2003, I actually received it in December 2005.
- October 25, 2007 at 1:18 pm #75845
Latenitetelevision – Thanks for all the positives, are you sure you don’t work for them????? Everything else has put me off so far. Perhaps you could explain why sdodgeson claims that the quote he took from their website is illegal?
- October 25, 2007 at 4:35 pm #75852
I don’t know exactly what the legal position is nowadays regarding selling your apartment before completion, so I don’t know if the statement is illegal or not. Sdodgson has assumed using an estate agent to sell with a 7% commission which would of course not necessarily be needed.
I actually think that anyone considering buying here should be looking to hold for the long term anyway.
I am a mortgage broker so my business is with people that do complete on their properties !
I’ve had some clients interested in the development and I think it’s a decent prospect.
I was just trying to introduce a bit of info that I was aware of, rather than lots of posts that just seem to be on a downer about buying in Spain
- October 26, 2007 at 3:24 pm #75876
As a broker in Spain you should be aware that anyone selling an off plan private purchase contract is liable for a 7% transfer tax on the whole. And yes agents fees are lower than 7%, but many of the big ones arent. The promotor will put the same property back up for sale, but will want a hefty fee to do so!
It does seem a nice place, but then loads are nice here, really depends what people are looking for.
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