You acuse me of lying and “talking up” the market.
Now, now Mark, no-one is accusing you of anything.
I’m merely expressing disbelief that property buyers in Spain would or should be attracted to buying off plan property. The advantages for doing so in a rising market are obvious – you can negotiate a decent discount off the price of the property in lieu of part-funding the developer and shouldering some of the risks.
However, in a down-turned market those advantages no longer hold true, supply well outstrips demand and that means in many cases a better discount can be negotiated without having to shoulder any risk or having any ‘sunk’ money for substantial periods of time.
I don’t know what data you have in your possession, but I know of several projects that are selling reasonably well off-plan today. I’m not talking about hearsay. I’m talking about data. I base my opinions on what I see.
I’m not looking at ‘data’. I’m using common sense that dictates in a down turned market buying off plan is not necessarily a sensible thing to do! However, as I said previously, no doubt the people buying these off-plan developments have plenty of money and don’t want the hassle of looking for the right place and negotiating discounts they just want glitzy sales brochures and a sign on the dotted line.
I didn’t say there wern’t plenty of people will lots of money about, I merely said, buying off-plan doesn’t represent a particularly good deal in todays Spanish property market.
Anyway, pray tell, what are the risks involved in buying off-plan today in Spain? I know what they are, but I wonder if you do.
Well for me, it would be the obvious one plus the one I mentioned earlier. The discounts aren’t as good in comparison to pre-existing properties and there’s always the possibility the developer can go bankrupt and the development not get completed. No doubt you’ll point to guarantee schemes now being in place to prevent that from happening, try telling that to the thousands of people who’ve lost money on buying pre-plans and still can’t get their money back.
I don’t trust Spanish developers, bankers and politicians further than I can push them off a cliff.