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Hi Mark,
I have just recently found your website and have been reading with interest the comments on the Costa Del Sol mkt. I actually bought into one of the developments in Alcaidesa 3 years ago affected by the recent scandal and through the estate agent which seems to keep coming up (are we aloud to mention their name?). This was one of the developments that they specifically recomended along the coast and where they had a relationship with the developer (I wonder how much they knew?). They also gave all the old spill that they would definitely be able to sell on and although I am not totally gullable and knew that it would not be as easy to resell as they made out I would like to say that I personally heard at one of their exhibition seminars the OWNER / MD (I can provide name if required) of their company actually state that there was a 70% + chance of reselling before completion. Therefore they have not even got the usual excuse that it was a sales rep just saying this who has left the company and that it wasn’t usual company policy to say this. By the way, I believe their sales reps at the time were quoting a 90% chance of reselling. I think this company should definitely be named and shamed as I would say that these were one of the biggest causes of the price speculation in the new areas such as Duquesa. When people came to them just to buy a holiday home they would try and encourage you to buy off plan instead saying the profit could pay towards your own property eventually.
With regards to the property that I bought, the back up plan if I didn’t resell (I dont think they even tried to sell it on at the end) was that there was a hotel that was going to rent the property out as an apart hotel. However, what with what has happened this has now fallen through and am not sure if they will try and do anything about this. I still think it is has rental potential as it is very near a nice beach and there is 2 golf courses on site but obviously now it will be harder. Also, the developer was supposed to build a gym and a communal laudry area and this doesn’t appear to have happened (although they say they will do this when everything is resolved). Do you think that in this case I might be able to get my deposit back? Does the bank guarantee still stand if I cant complete even though the apartment is built?
I also bought an apartment in a nice part of Estepona which I complete on soon, and what I have seen so far I am very pleased with. I believe it has excellent rental potential and long term growth. However, I am quite concerned after reading some of your comments about the mkt. Do you think the costa del sol mkt really is on the brink of a crash? If so, do you think the mkt will eventually recover and be good for the future? I know there is a lot on the mkt at the moment but I thought that the development was now slowing down and what with the new infrastrucutre such as airport expansion / coastal railway etc, and the amount of people moving over there I thought that although you are not going to see the huge rises of the last few years that you would probably see quite modest rises or a stagnation of prices.
Sorry for such a long post.
thanks
Alex -
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Hi Alexc
You may have visited the same exhibition as I did in London when I challenged the Chairman of Awful Estates whose name sounds like a hamburger chain. This Agent had stupidly put in writing to me that they ‘re-sell 94% of all investor’s properties prior to completion’ a total lie.
When challenged and under pressure he said the figure was 75% also a total lie as ex staff of theirs say the figure is nearer 17-20% and most of those belonged to this Company’s staff and Directors, not re-sales for customers.
I still have this letter as proof and a warning to others, meanwhile they are still trotting out similar garbage to the unwary.
Paul
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Hi Alex,
Sorry to hear that you fell into their clutches as well. You’re far from alone.
If you did buy on the development I’m thinking of then I hear there are all sorts of problems with the spa and gym facilities. Nothing is what it seemed when you paid your deposit. But I regret to say that the only people that can help / advise you now are lawyers. I hope you have a good one.
I think that the market in the Costa del Sol is heading into choppy waters. All this off-plan speculation has distorted the market and I think it could cause a bit of pain as it unwinds. However this is just my personal opinion and time will tell whether or not I am right. But if you have bought a well-built property, attractive and in a nice part of Estepona then over the long term I would expect it to hold its value.
Mark
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