Anyone investing in Spanish prop? Have been 'offered' this..

[kurt535]

Have been on e-mail list of a company for a number of years. I never bit their offers during recession as Id rather buy in a rising market than try to pick the bottom.

Latest scheme they have is as follows:

Alicante region, 10 mins to airport and old town.
150,000 euro 2 bed serviced apartment. apparently freehold as leasehold doesn't exists
100% mortgage. fixed for 2 years
upfront fees of @ 2500 euro to close deal
return of @ 4-5000 euros per annum, net of 15% management fees
you can choose to also use the apartment for any number of weeks but this obviously reduces revenue stream

has anyone else here gone for this type of deal? be interested to hear your experiences

Ty

[James_B]

Have you checked what price you can rent the equivalent for nearby, and the occupancy rates?

Also, why buy through a scheme or organisation? Surely you’d be better to buy in the secondary market, sitting with the cash available to buy from whoever wants a quick sale.

Buying from a company in a packaged deal just screams “scam”. How does this differ from storage pods, car park spaces or student flats, or even Los Pandos vineyard?

It may be genuine, of course, but due diligence doesn’t mean asking on here. It means visiting, investigating, and working with an actual lawyer.

[carreauchompeur]

Hmmm, I'd love to have a place in that region. But anything where there are large numbers of apartments, especially being sold on these terms, does smell like a potential bubble waiting to burst.

I'd be more tempted to buy a 'mature' place, not sure what the mortgage terms/availability are like?

[kurt535]

my sentiments entirely backed up by your comments. no such thing as a free lunch, after all .

ty

[NickCQ]

There was a thread here recently about buy to let opportunities in Spain. The general conclusion was don't do it, as I recall!

[Saleen836]

How much are the monthly fees for the upkeep of the immediate area?
I'm guessing the proposed rental income isn't guarenteed?

[kurt535]

Saleen836 said:

How much are the monthly fees for the upkeep of the immediate area?
I'm guessing the proposed rental income isn't guarenteed?

deaths and taxes the only guarantees :)

they sent through a spread sheet showing how the other rooms have performed in occupancy - if they are to be believed

[indigostr]

We rent for 4 months every year , the urbanization we stay on is deserted. We have use of 5 pools , paddle courts ,gym ,spa,sauna. The property is worth 300k euros. We can take 60+ years of renting with that capital.
We have heard the communal fees are the problem on some urbanizations, once a few stop paying the stack of cards begin to fall and you end up with no maintenance and an unsaleable property.
We have looked at a few on the costa del sol with the 100% offers, brochures are lovely but on arrival it's evident the photographs were from when originally built and that fees / mortgages have not been paid.

[Saleen836]

kurt535 said:

Saleen836 said:

How much are the monthly fees for the upkeep of the immediate area?
I'm guessing the proposed rental income isn't guarenteed?

deaths and taxes the only guarantees :)

they sent through a spread sheet showing how the other rooms have performed in occupancy - if they are to be believed

For peace of mind have a google of apartments for rent in the same area, they should have availability calendars for you to get a good idea of occupency over a 12month period and what they charge.

[kurt535]

ty, again for this insight.

[14-7]

If you actually go over the estate agents and banks are selling some very nice places far cheaper than what you have put above.

Doesn't sound like a good offer to me.