May 1, 2007 at 10:20 am #52852
I’m trying to get an idea as to what extent there are still off-plan investors out there trying to sell on before completion. The game was largely up by 2005, on the CdS at least, so in theory most investors who committed in 2003-2004 should have sold on or lost their deposits by now.
Can anyone shed some light on the situation?
Anyone bought off-plan to sell on and still waiting trying to do so?
May 1, 2007 at 10:32 am #71669
I know of a number of people locally (Spanish) who have bought off plan with a view to selling and all have had to complete because there were no takers. In saying that the prices they were asking for their 2 bed boxes were ridiculous
In my local town of Piles where there are currently about 1500 properties by the beach, there are about 200 for sale – mostly new builds and mostly now completed. Also there is a new development underway of 2400 new 2 bed boxes – the urbanisation is being completed as we speak and no-one can sell the land because none of the developers will pay the high price because they cannot get any off plan investors to buy up front. So we have a fantastic great car park at the moment (and hopefully long may it stay like that) but no new buildings.
So I would say in this small area at least some have learnt their lesson – although there are still some who are looking to buy off plan it is very few now.
May 1, 2007 at 10:51 am #71671
I’m trying to get an idea as to what extent there are still off-plan investors out there trying to sell on before completion.
I presume you are only talking about legal builds with LFOs Mark?
May 1, 2007 at 11:16 am #71675
Yes, to keep things simple I’m only talking about legal builds with LFOs.
Thanks for your comments Vince.
What about the CdS? Anyone with a view as to what is going on there? Have the off-plan investors largely been washed out of the system (completed, sold, or lost deposits), or are many of them still trying to sell on?
Anyone reading this still trying to sell on, or forced to complete? If so, what do you think?
May 2, 2007 at 3:29 pm #71747
Don´t know about the cds but Costa Calida has a huge proportion of investors lumbered with looming completions. Polaris World alone must account for up to 1,000. Many having problems with clause 42 return of deposits. Only 15 days to claim if the builder is late handing over. This is a life-line for those quick enough to apply, otherwise it´s complete with no funds or lose your money.
Gordon Brown is one of the reasons for this, there was a crazy rush in 2005 to buy offf-plan using your SIPP. When Brown decided not to make this an option in his pre budget speech in 2006, a large part of middle England was left with massive commitments on property, fine wines, art and classic cars, non of which could be off-set against tax.
I think this move alone must account for a good 25% of distressed sellers.
The rest were just looking for a quick buck!
As soon as Brown closed the loop-hole that´s when 100´s of 2 beds appeared on the market forcing prices down and flooding the market.
Things have never been the same in the property market here in Spain since.
Can´t wait for him to be Prime-minister, things should really go well 😕
May 11, 2007 at 7:51 am #71978
There has been recent court victories concerning 4.2 clauses and some were as much as 4 months over the 15 day rule.
The courts do not accept this window as legal.
May 11, 2007 at 8:28 am #71981
Wish the courts felt the same way about illegal clauses in contracts e.g. “Completion is due on issue of the architect’s End of Works certificate” which goes against the spirit of the LFO law.
Purchasers are supposed to be only legally obliged to complete on issue of a Licence of First Occupation, which was brought in to protect consumers against builds that have not yet been deemed legally-habitable by the Town Hall.
And it’s about time the Administrative Silence rule was revoked – it’s just not relevant in this day and age and just causes confusion/dilemma.
May 11, 2007 at 4:24 pm #72016vbtudor wrote:Hi Mark
completed as we speak and no-one can sell the land because none of the developers will pay the high price because they cannot get any off plan investors to buy up front. So we
How much does the land cost? Do they sell small parcels or only large parcels?
May 11, 2007 at 6:23 pm #72020
in this particular case it is all for building apartments. What the develoeprs usually do is buy the land and then put together a project. Once the project plan is nearing completion they then find off plan buyers. However because all around are many people trying to sell off plan properties that are coming to completion and cant, the developers are not buying the land because the prices are too high t build the apartments at a price that will sell.
Basically the people who originally owned the land sold it 3 – 4 years ago at about €900/M then those speculators who bought resold it asnd the price just kept going up — speculating that the urbanisationonce finsihed would be a gold mine and so land would be valuable
But the price of the land at presentmeans that to make it profitable forthe builder at the current land prices they would have to sell the apartments at €240,000 to make 20%. Not many apartments would sell at this price for a standard 60M box.
So the developers arent buying leaving the speculators with land they cannot sell and will have to sell at below what they bought it for or hold on for a few years till prices catch up
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