Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Off Plan investor safety net?
- This topic has 6 replies, 6 voices, and was last updated 17 years, 5 months ago by Anonymous.
September 26, 2005 at 3:28 pm #51254
Unfortunately there are many people who have invested in to an off plan property for investment purposes,and for much discussed reasons are not reaping the reward that they might have expected. There are many who did not contemplate for one second the implications of having to complete on their investment and find that they either have to take a loos to get out quickly or to complete and ride the storm out.
However there is possibly another option available that might be of use to some of these same investors. This will not suit everybody as no alternative plan can ever do this but for some people it might just do a job for them.
The main factor is that though not wishing to bring any more funds to the investment,the investor can afford to allow his already invested monies to ride for a longer period.
The basics of this scheme are that the property must have risen in value since originally being reserved,(despite the fact that ready buyers are not presently there at the new value) If the property can then be obtained for less than it’s current market value then the following will apply:
The property will be made part of a scheme for 3 years.
A rental income of 9% of the original investment will be made to he “owner” over the period of the scheme.
At the end of the 3 years the property will be sold and the owner will receive an equivalent % of their original stake based on the then selling price?(I.e. 30% invested and so a return of 30% of the new selling price is returned)
To fit for this scheme the property must be completing within the next few months and must be within the geographical range of Las Chapas to Estepona.
September 26, 2005 at 4:14 pm #58932
Is this a scheme that’s in place, or just an idea?
September 28, 2005 at 8:55 pm #58971
The scheme is new and taking suitable propertyies on board right now.
October 13, 2005 at 9:05 pm #59084AnonymousInactive
I just wondered what Mark thought about this new scheme?
October 14, 2005 at 9:32 am #59086
As this posting has come from a “guest” – I wonder how legitimate it is???
October 14, 2005 at 11:45 am #59090
There is always someone who will try to make money from someone elses misfortunes !
October 14, 2005 at 4:36 pm #59094
Though I’m sure you haven’t been holding your breath, I’ll give you my first reaction.
The first question this post brought to mind was ‘is it a scheme or is it a scam?’
And on the basis of the information provided, I couldn’t tell you. There’s just not enough detail provided.
Also I’m struggling to make sense of the idea that a property’s value can rise despite the lack of buyers prepared to pay the higher price. But maybe that’s must me be pedantic about a small detail.
On the other hand I can see the need for a scheme that allows off-plan investors to hang on in there without having to put up more money, and without loosing all funds they have committed if they can’t complete. It would be complicated though, and the devil would be in the detail. The anonymous guest who started this thread is welcome to send me more information by email so that I’m in a better position to judge what this is all about.
If I hear anything I’ll let the rest of you know.
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