June 18, 2005 at 10:39 am #51137
I came across your website and it’s just what I need – great!!
My financial adviser in the UK has suggested I invest in 3 properties in the Murcia area. He is intending to purchase 3 properties as well. All of these come with “guaranteed rental” which effectively cover the mortgage costs for 3 years. Two of the properties are 6 month with 6 months free to use/rent out and the other is 9 months with 3 months free to use/rent out.
I have no experience in this and wonder if you have any knowledge of “guaranteed rentals”.
Obviously the investment plan is that for a relatively small deposit you can purchase 3 propertys, sell one before completion to pay the initial costs and the mortgage is covered by the guaranteed rental plus any other rentals I can get.
Does anyone have any experience or comments?
Thanks very much.
June 18, 2005 at 10:51 am #58409
Be VERY sceptical. The only guaranteed rental schemes that I’ve ever known to work are those in already well established tourist areas, which Murcia isn’t. You will almost certainly find that the rental is guaranteed not by the developer as such, but by a rental management company that the developers will set up. When he’s sold all the properties the rental management company goes under and you’re left high and dry as any contracts signed with them won’t be worth a damn.
For the bit about selling one before completion to pay for the other two, I would very much doubt you’ll find a buyer for it. If you enter into this deal, do not expect to sell any of them before completion.
In short, phrases containing words like “bargepole” spring immediately to mind. Get a new financial advisor.
June 18, 2005 at 11:13 am #58410
Oops. That was my post, but I got all excited and forgot to log in.
June 18, 2005 at 11:41 am #58411
Sack the financial advisor! Read some of the excellent info. on this site.
June 18, 2005 at 12:29 pm #58412
Thanks. For info the three developments are:
A small development of 52 detached villas situated on the 18 hole Campersol Golf Course in Mazarron.
This is a small (14 units) select development ideally situated only 100 metres from the lovely beaches of the Mar Menor.
Within walking distance of Villamartin Plaza, 2 minutes from Villamartin Golf Club, 10 minutes to Camposl and Las Ramblas Golf, close to La Manga, Algorfa, (2005 P.G.A.), Rojales
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