Originally Posted by Golfingworld

Rob, unless I am missing something here, isn't any fundamental business proposition based on buy low sell high? Tell me anyone who buys high and sells low, except for those who bet on Tiger Woods or those wish just finished off plan apartments in Fuengirola? Now you have opened up the price debate, let's be clear about something. Prices that Ihave seen offered in Natal (can only speak Natal) are not low. They are riduclously high for the current state of the economy, the infrastructure, the accessibility, the suport and most important of all the demand in the market. Off plan developers seem to only work off one principal which is "the next phase will cost more, so yours will have gone up in value". That's like telling me that a newly floated Company's share price will guarantee me profit beacuse the 2nd float will be at a higher price..and so i can follow that price up. Wrong....prices work on one, well two things only..."supply and demand" find me an economics book somewhere please that tells me that beacuse you pretend something is in demand and sell the next batch higher prices will continue to rise, even though there is a stampede of purchasers. False theory in my view. The whole off plan economy works on a tthe principle that the next phase always has to be higher, this way it justifies the reason for forward buying. The reality is you can drive from Barcelona to Lisbon by the coast and pick off any one of thousands of appartments at discount prices....all because people are trying to bale out as a) there is insufficient rental income and b) they bought high and found prices didn't go higher.
Yes, rather like pyramid selling, those in on the very ground floor can make a killing, providing the next stage comes along quick enough. But in my view this won't happen in Brazil for the reasons explained above. Also just read the posts, lots of comments about "we will get our full guarantee in Septemeber". Nuffun nowhere can I find anyone who says we are up running fully licenced, the first green is in, you can stay in the show flat etc etc.
I understand that you guys have to sell things, but in the olden days when a bloke built a house he had his own money, he bought his bricks, he put the roof on it and then he sold it at the market value. Not the one that he pretended was the value becuuase he artificially inflated the price of the house next door!