Reply To: More Bad news for Spanish Property!


“he offered a deal which would have taken the developers entire key ready stock for a discount” – But what was the discount asked for?

“they still took three weeks to turn the deal down” – Don’t you realise that they would have had to put the proposal to their funders before making a decision and only then would they be able to get back to you.
It could be that the properties were used as security and selling for a drastically lower price, could have been that the developer may be let of the hook a bit as for as guarantees for the funder goes.
There again, as you say that “almost all Spanish developers who simply are not commercially minded”, perhaps you think that they would not to seek approval?

“I have experienced a kind of arrogance with almost all Spanish” – and UK and USA and French and nothing to do with them not being commercially minded.

“They honestly think that no matter how long it takes, their stock will some day get sold for the price they want. ” – Do you realise that when a project is funded externally, the developer does not have the last say. May I suggest that perhaps it is yourself that is not “commercially minded”?

“The developers I have known simply have one rule when it comes to economics, cost plus profit = selling price. – and you think that is inique to the developers you know?
Tesco – cost + overheads + profit = selling price.
Whatever the costs involved is not their concern, it is the buyer who has to foot the bill.
So what is the difference.
Do you think it should be cost + no profit = selling price?

“Spain is waking up to a new kind of economics” – OK, so it is only us wonderful Brits who ruined the manufacturing industry are any good in business?

“So the next time you hear another developer go bankrupt or seek bankruptcy protection, remember, they have probably realised that they did actually need the money after all” – But their funders would not give consent to dispose at big discounts.

“Spanish will never accept an offer. It is against their nature.” – so if that is the case. why do they haggle so much?