May 10, 2007 at 6:12 pm #52874
I have now completed on my La Torre apartment. This apartment as you may know is part of the Polaris Golf complex located near Murcia.
I have bought this apartment with a good friend of mine, since completion he has decided to sell his half of the investment. He told me he has no long term faith is this venture.
I am undecided wheather or not to buy him out. I am not sure if I should sell this apartment as I feel we will not make much profit (if any).
If there is anyone who can give me any advise on this it would be greatly appreciated as this will help me consider my options on what I feel I should do.
May 10, 2007 at 10:40 pm #71975
I guess it all depends on your original reasons for buying in the first place. If it was bought for investment, then you could be waiting a very long time to realise any return in terms of capital. I have watched the prices on LT for over two years, and the price of apartments has not moved. Lots of people are placing adds saying “for sale at original contract price”. PW don’t help by selling off plan apartments on new developments cheaper than LT prices.
If you need to rent out to cover mortgage costs, then once again in my view you may struggle. There are about 1,800 properties on LT, many identical apartments, lots of competition.
I also think your friend may well struggle to sell half a property.
It may be worth both of you selling up and sharing the loss after all costs are taken into account.
However, if it was bought for holiday/own use etc., then I guess you need to decide if you will make full use of it yourself
May 10, 2007 at 11:29 pm #71976
Classic case of not doing business/money transactions with friends. I dont know your personal/financial situation.
I feel that your friend is decided to cut and run and as a result left you in a lerch. Frankly the friendship satin/silk gloves should be off and the boxing gloves should be on.
I bet if all was well and the prices went up. He/she would not have
placed you in the position that you find yourself.
You, should buy him/her out at a substancially lower price. Such is the commercial world.
June 1, 2007 at 2:58 pm #72644
Thanks both for the information. Lessons learned I should not have gone in with a pal as it can be difficult if it does not work out. We will both be over there this month to make a final decision and assess to see what the chances are of selling it it one at a reasonable price…..hopefully not at a loss. I do realise there is a lot of competition out there so it could be quite difficult.
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