Reply To: What’s going on in the off-plan investor market?

#59072
Anonymous
Participant

Whilst not an off plan investor, I did consider buying an off plan resale.

In March 2005 I was interested in a two bed, two bath townhouse on the La Torre Polaris World Golf Resort due for completion in first half 2006. The asking price for this property was 260,000 €. The original contract price for the property in October 2003 was 179,000 €. At the time I asked the question on several forums and of the agent, how can the difference in price (81,000 €) be considered for tax purposes. My understanding was that it would not and was part of the common practice of “underdeclaring”. So when I would com eto sell the property, I would also underdeclare to ensure I would not be liable for CGT on the difference. The consistent legal advice was that the Spanish authorities will clamp down on this. As yet, this one issue still to be resolved regarding off plan investing.

The asking price of property I was interested in has steadily reduced since March to a current price of 195,000 €, just 16,000 € above the contract price. Now considering the posts on estate agent comissions, the 9% profit is probably the agents cut, and the vendor is just trying to get his money back.

Consider PW is in Murcia, which is supposed to be the latest “hotspot”, it does not bode well for the off plan speculator.

Regards
Kevin