Advice required..Property problem
Discussion
Hi Folks,
I'd appreciate your input on the following which I'll detail as a timeline-
Jan 2007-
Started looking at buying a property abroad to use as a Holiday/Rental Investment. We found an 'investment' Company online which was marketing a new-build development on the shores of Lake Como in Italy. They sent me all the info which detailed a healthy 'investment' potential from both property value growth and also the annual holiday-rental market.
Feb 2007-
Visited the development and liked what we saw very much. (still do). Estimated completion/payment date as advised by the 'investment' company was March 2007. We placed a deposit to secure our preferred apartment.
March 2007-
In the middle of the month we were advised that the 'completion' date was now going to be end of May. Suited us....2 months not paying the new mortgage and it gave us longer to prepare/plan
April 2007-
Hooked up with a very smart bloke on Como who runs a property/rental management Company. He agreed to take our apartment on for a % of the rental income. He would also market it on his website. Others in the same development have also done the same. We also used this fella to take us through the lagalities of buying the property and overall he as been worth his weight in gold.
May 2007-
Head out to Italy to exchange the contract and get keys. Italian Bank providing Mortgage has messed up so no funds to give to developer. The deal is not off, just postponed. Suits us....no mortgage payments to make.
June/July 2007-
Sort mortgage with new Italian Bank. It takes ages and they want to see the colour of your underpants. (beige)
August 2007-
Back out to Italy to exchange the contract. No probs this time. Get keys.
September 2007-
While apartment is complete, the surrounding area is an absolute disaster of a building site. This makes the apartment non-rentable in our opinion and that view is shared by other owners that we are beginning to meet as we spend time there.
October 2007 through to February 2008-
Surrounding area is still an absolute mess however we accept (with no little discomfort) that any rental potential is now gone for the Autumn/Winter season. The apartment is 45 munites away from the ski-slopes so is ideal. Well it would be ideal if you could get past the cement-lorries,diggers,dopey workmen etc. who continue to litter the place.
March 2008-
Receive an email from the 'investment advice' company telling us that we must now deal directly with the developer regarding any ongoing complaints. So basically, after stating that it would be 'a good investment' they are now trying to bail from responsibility. Why you might ask?............
April/May 2008-
New estimates from the developer are that it will be April 2009 before the area is complete. So that practically removes any rental potential for this coming Summer/Autumn/Winter too.
Needless to say, we feel that we have not been told the truth regarding the ongoing building work and the impact that would have on our finances.i.e mortgage payments out and no return through rental.
Our Property manager on Como had taken a few bookings for our apartment but like us feels it is bad business to allow holidaymakers to stay while it remains a building site. This obviously is hurting his pocket too as he has taken on other owners from the same development who had similiar expectations. All bookings have now been cancelled/rearranged elsewhere for the forthcoming seasons.
So...
1/We have a beautiful flat in Italy...but it's not rentable due to ongoing surrounding building work by the same developer. We were told this would all be completed by now.
2/Our 'investment' is patently not showing any rental returns.
3/The 'investment' Company appears to be trying to distance itself from the 'advice' it gave. Let's not kid ourselves...we always knew they were an Estate Agent. They are still selling in the next development however!
If any of you can be assed, I'd really appreciate any thoughts/comments.
Thanks,
SL
I'd appreciate your input on the following which I'll detail as a timeline-
Jan 2007-
Started looking at buying a property abroad to use as a Holiday/Rental Investment. We found an 'investment' Company online which was marketing a new-build development on the shores of Lake Como in Italy. They sent me all the info which detailed a healthy 'investment' potential from both property value growth and also the annual holiday-rental market.
Feb 2007-
Visited the development and liked what we saw very much. (still do). Estimated completion/payment date as advised by the 'investment' company was March 2007. We placed a deposit to secure our preferred apartment.
March 2007-
In the middle of the month we were advised that the 'completion' date was now going to be end of May. Suited us....2 months not paying the new mortgage and it gave us longer to prepare/plan
April 2007-
Hooked up with a very smart bloke on Como who runs a property/rental management Company. He agreed to take our apartment on for a % of the rental income. He would also market it on his website. Others in the same development have also done the same. We also used this fella to take us through the lagalities of buying the property and overall he as been worth his weight in gold.
May 2007-
Head out to Italy to exchange the contract and get keys. Italian Bank providing Mortgage has messed up so no funds to give to developer. The deal is not off, just postponed. Suits us....no mortgage payments to make.
June/July 2007-
Sort mortgage with new Italian Bank. It takes ages and they want to see the colour of your underpants. (beige)
August 2007-
Back out to Italy to exchange the contract. No probs this time. Get keys.
September 2007-
While apartment is complete, the surrounding area is an absolute disaster of a building site. This makes the apartment non-rentable in our opinion and that view is shared by other owners that we are beginning to meet as we spend time there.
October 2007 through to February 2008-
Surrounding area is still an absolute mess however we accept (with no little discomfort) that any rental potential is now gone for the Autumn/Winter season. The apartment is 45 munites away from the ski-slopes so is ideal. Well it would be ideal if you could get past the cement-lorries,diggers,dopey workmen etc. who continue to litter the place.
March 2008-
Receive an email from the 'investment advice' company telling us that we must now deal directly with the developer regarding any ongoing complaints. So basically, after stating that it would be 'a good investment' they are now trying to bail from responsibility. Why you might ask?............
April/May 2008-
New estimates from the developer are that it will be April 2009 before the area is complete. So that practically removes any rental potential for this coming Summer/Autumn/Winter too.
Needless to say, we feel that we have not been told the truth regarding the ongoing building work and the impact that would have on our finances.i.e mortgage payments out and no return through rental.
Our Property manager on Como had taken a few bookings for our apartment but like us feels it is bad business to allow holidaymakers to stay while it remains a building site. This obviously is hurting his pocket too as he has taken on other owners from the same development who had similiar expectations. All bookings have now been cancelled/rearranged elsewhere for the forthcoming seasons.
So...
1/We have a beautiful flat in Italy...but it's not rentable due to ongoing surrounding building work by the same developer. We were told this would all be completed by now.
2/Our 'investment' is patently not showing any rental returns.
3/The 'investment' Company appears to be trying to distance itself from the 'advice' it gave. Let's not kid ourselves...we always knew they were an Estate Agent. They are still selling in the next development however!
If any of you can be assed, I'd really appreciate any thoughts/comments.
Thanks,
SL
I have also recently seen these advertised on the internet and think they were using the same slogun! We are actually going out to Como this summer as part of a driving holiday so thought i might have alook out of interest.
Sorry no proffesional advice from me but just put it down to experience and think how wonderful it will be when complete and what great hols you will have their!
Sorry no proffesional advice from me but just put it down to experience and think how wonderful it will be when complete and what great hols you will have their!
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