February 6, 2009 at 11:48 pm #54730
As many who have read my posts will know I bought off plan in 2003 in the Aldea Hills in Manilva I bought a 2 bed for 163 euro and paid a deposit of 76K.
For whatever reason (long story) I was advised not to close by my solicitor in June 08 after the LFO was issued. So we missed the date at the Nortarys office
Now we are having difficulty getting in contact with the developer as we do want to complete.
Should I complete, I have to pony up 87K + IVA + legal, approx 103K. If I was to sell this two bed today whats it worth?
Maybe I could buy another one for not much more on a better part of the coast ?
The question is should keep my 103K + buy something else when prices fall further ?
February 7, 2009 at 12:22 am #90085
Hi Conn, without build sizes its not easy to advise, but one in Vista Bahia very close to the sea (not beachside) went for 120,000 euros early january. 80sqm interior plus terrace parking and storeroom, thats the sort of price for a reasonable 2 bed with ok views.
Wouldnt want to comment what you should do, its a tough call but they are your shoes.
February 7, 2009 at 12:24 am #90086
Also if you havent completed when you should have done, the developer may have kept the deposit in forfeit, in which case you do not have an apartment anyway. Better double check with your lawyer
February 7, 2009 at 12:32 am #90087
That is the sort of information I am looking for. It seems I will have not lost that much so if the developer plays the forfeit card.
On your other point I have heard differing reports re how much of the deposit the developer can keep in this situation, whats your opinion on this, will I get any of it back?
February 7, 2009 at 1:49 pm #90096
Here’s my perspective on the situation.
I bought off plan in 2004 (completed 2007) for 187k Euros and with buying costs, servicing the mortgage, community etc I will be looking at a total loss of approaching 90k Euros when my buyer completes in a few weeks. I have put the property on the market at a price to sell and it sold within a few weeks. (The apartment has never been lived in)
The price I am selling at is still 10k+ Euros more than I paid for a larger (extra bedroom, more sqm ) frontline apartment in the same resort in 2003. I guess that shows how quickly prices accelerated in my area.
The forecast unemployment figures for Spain that I read the other day predict that unemployment will keep rising through until 2011 at which date the figure will stand at around 18%. I suspect these figures will be worse as I imagine an optimistic forecast was made as opposed to a pessimistic one.
Logically prices in 2011 are going to be lower than today. How low I do not know, but I suspect that I would have to reduce my apartment by another 30k+ euros to get the sort of interest I have today.
I made a bad call on my investment apartment (the other is a holiday home) and I am cutting my losses. A young Spanish professional couple are buying and it will be their first home.
My guess financially is if you walked away and cut your losses, waited for 2~3 years then bought your expenditure would unlikely to be higher than if you completed today. You will be buying in a buyers market as opposed to a sellers one. That will probably give you the advantage of getting what you want and not what’s available.
But as Inez has said it’s really your call.
February 7, 2009 at 6:25 pm #90099
Conn, speak to your lawyer as the contract will state what you may be entiltled to BUT this may also only be IF the developer delayed and not because you didnt complete.
February 14, 2009 at 11:21 am #90218
Cant offer any additional advice to that of Inez but we are talking of 76k Euros!!. Dont mess around asking here what might happen, get onto that lawyer and get that contract read and double checked and triple checked by him. If he is no good get another from Marks list and get stuck in. In the climate we are now in the builder will do all he can to keep as much as possible. Even if you dont complete get cracking now and try and get back anything that you can legally do.
Sorry to sound harsh but its a lot of your money and the only correct answer will come from a lawyer with a contract in front of him.
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