[deelcee]

i purchased a property in spain off plan in 2005 it is now ready for completion
it has the habitation licence but not the definitive licence for the whole development
the development is 90% complete but only 1/3rd is ready for completion
the site is on 'builders supply ' for mains services
the builder is likely to go into liquidation at any time!!
the builder is in breach of contract so i don't have to complete .. just lose my deposit
my dilema is
do i complete and own a property on a partly built development with no mains services,and take a gamble that it will all be sorted out sometime soon
or do i cut my losses and go to spain with cash and try and find a bargain ???

[Nautorius]

deelcee, on Jan 21 2009, 05:12 PM, said:

i purchased a property in spain off plan in 2005 it is now ready for completion
it has the habitation licence but not the definitive licence for the whole development
the development is 90% complete but only 1/3rd is ready for completion
the site is on 'builders supply ' for mains services
the builder is likely to go into liquidation at any time!!
the builder is in breach of contract so i don't have to complete .. just lose my deposit
my dilema is
do i complete and own a property on a partly built development with no mains services,and take a gamble that it will all be sorted out sometime soon
or do i cut my losses and go to spain with cash and try and find a bargain ???

OK,

We need more information. Where is it in spain, what type of property is it, how much did you pay as a deposit and what % age was that, etc

Cheers

Paul

[markinspain]

deelcee, on Jan 21 2009, 06:12 PM, said:

i purchased a property in spain off plan in 2005 it is now ready for completion
it has the habitation licence but not the definitive licence for the whole development
the development is 90% complete but only 1/3rd is ready for completion
the site is on 'builders supply ' for mains services
the builder is likely to go into liquidation at any time!!
the builder is in breach of contract so i don't have to complete .. just lose my deposit
my dilema is
do i complete and own a property on a partly built development with no mains services,and take a gamble that it will all be sorted out sometime soon
or do i cut my losses and go to spain with cash and try and find a bargain ???

My view would be to cut your losses and pull out. It seems like a mighty big risk to complete on something that doesn't have all the necessary permits, doesn't have all mains services and could be potentially practically unoccupied.

Also, I wouldn't recommend coming here with a wad of cash to buy something as even though you think you are getting a bargain, prices definitely won't be increasing in the near future and could continue to decrease for years. If you intend to live here permanently, why not rent? There are thousands or quality properties to choose from and don't forget in Spain the owner pays the council tax and rubbish collection. Also, any maintenance is someone elses problem, not yours.

[deelcee]

Nautorius, on Jan 21 2009, 07:06 PM, said:

OK,

We need more information. Where is it in spain, what type of property is it, how much did you pay as a deposit and what % age was that, etc

Cheers

Paul

hi paul!
the property is a 2bed 2 bath townhouse in san juan de los terreros costa calida near aguilas ,300 mtrs from the beach and golfcourse,paid £66000 being 50%,
cheers dave

[Radio]

deelcee,

I think you have answered your own question, really. The chances of this development being completed, with utilities & amenities would seem remote. Walk away now you lose £66k plus costs. Complete & you will have a property on a building site that is unlettable, unsellable and an ongoing, open-ended financial burden.(Plus, of course, you'll be another £66k out of pocket).

Last year I visited a huge development by Fadesa on the Portugese border - Costa Esuri - which is now a mixture of ghost town & derelict building site. Sounds like yours could go the same way.

[Nautorius]

Thanks for the reply. To be Honest I would abandon ship! Write to them and tell them you will not complete until the work is carried out. Then you do not pay anymore and still are in contract in case a miracle turnaround happens. I was accros in Spain today looking at property and it is shocking. The fact the banks will not lend more than 50% is in itself a tell tale sign!

Went past la Alcadesa and looked in. Large detached new build on a street of 12, 5 bed, very nice. Jan 2008 Advertised at €620k. December 2008 €370k....today €290k. Given all 12 are for sale and bank is about to take possesion I reckon they could be got for €150k in 3 months time! Guy in bar showed me property pages he had kept. When they were built he said they were worth €250 then!

My advice is do not put any more money into Spain at the moment!

Cheers

N.

[deelcee]

hi guys!
thanks for your advice!
which we have taken on board
we will hold on and see what the property situation is like in spain next year
thanks again
dave

[james7]

deelcee, on Jan 23 2009, 05:45 AM, said:

hi guys!
thanks for your advice!
which we have taken on board
we will hold on and see what the property situation is like in spain next year
thanks again
dave

66,000!!! WOW!!! 66,000 is a lot of money to walk away from, however I think you did the right thing; if the developer can't complete, you shouldn't be required to complete either. Just be sure and let them know that you are ready, willing, and able to complete if and when the developer holds up to their end of the contract.

I am about to put down a small deposit of 2,000 pounds with Knight Knox International (www.knightknox.com) for an apartment in Spain on a golf course that suppostedly has been completed and will be ready to rent soon. I hope it is on the up and up as I get scared listening to others horror stories. Check out their site as it may be something you could be interested in.

If anyone has any input, please let me know. Thanks.

[Nautorius]

james7, on Jan 26 2009, 08:43 PM, said:

66,000!!! WOW!!! 66,000 is a lot of money to walk away from, however I think you did the right thing; if the developer can't complete, you shouldn't be required to complete either. Just be sure and let them know that you are ready, willing, and able to complete if and when the developer holds up to their end of the contract.

I am about to put down a small deposit of 2,000 pounds with Knight Knox International (www.knightknox.com) for an apartment in Spain on a golf course that suppostedly has been completed and will be ready to rent soon. I hope it is on the up and up as I get scared listening to others horror stories. Check out their site as it may be something you could be interested in.

If anyone has any input, please let me know. Thanks.

Do not expect to be able to rent at the moment. Far too much supply and little demand......I would not expect to get any Rent at the moment!

[Peter Hun]

Nautorius, on Jan 26 2009, 09:04 PM, said:

Do not expect to be able to rent at the moment. Far too much supply and little demand......I would not expect to get any Rent at the moment!

And make sure its has all the legal paperwork. Access to water, its not an illegal build and can be legally occupied,

Check out the forums here

http://www.spanishpropertyinsight.com/

Lots of owners and stories of the criminal acts that developers can get away with.

This post has been edited by Peter Hun: 28 January 2009 - 04:04 PM

[lulah]

on the rental front, we are renting a 3 bed detached villa in Marbella, have been here since Jan 08. We decided to move at the end of our lease as prices have come down, but as a 'cheeky offer' we said to the landlord we'd stay but the rent had to come down by one third.........He agreed. So now we are renting a villa for less than the landlords of the empty townhouses on our urbanization are trying to get! Good luck with that