Originally Posted by Goldberg Global

Answers in your text.

Hi Goldberg,

Just want to point out a few things:-

1. You said you work with Andy @ property showrooms and say that they are good people. (Yes I agree wit that.)

If that is so, they would not sell an investment they do not think will make money. (Maybe they dont know this area as well as I do, I dont think intentially they sell to lose there clients money, but be sure, they, like me or any agent wins, when a client buys, that is how we live on selling properties.)

2. Yes, ex pats would prefer to live on the coast, but i think this investment would also attract locals, especially Madrilenos looking to live / rent here. (Get real, people from Madrid 95% want to live, holiday, visit on Coast, Madrid is in the middle of Spain, we have people come here every week to go to the coast, they have enough land around them in Spain, to drive 3 hours to be in the middle of no where. This is not correct IMHO. In Spain, inland locations are very populated and prices are very high. (who tells you this , it is non sense) So why wouldn't Spaniards want to live in such a unique inland development like Jardin De Los Reyes? ( I dont think they will, it is overpriced touristy place with no tourists)
3. You say that you can buy a remote undeveloped plot for 10,000m2 plot for $40K, (this is a building plot, I would need to check with lawyers prior to sell, it depends on the laws in the area.) yes this is true as i also completed my own research. But put this plot in the middle of a 11,000,000m2 development, how much do you think it will be worth? 11 million meters of land. My point is if you are smart investor and if, a big if, this gets any legs and passed, then the clever people will buy outside the development, at half to quarter the price, and benefit from all the services. What you find, is that people that are so called investors get sucked in, and then they cant get out as there is no resale market. Then you have to fulfill your contractual duties, you would of paid 70k euros for a plot worth, well not much. What level of bank finance are you getting on these plots?)
4. I think the press and talk regarding the Spain property market crash is overally exaggerated. (well if you live here and see it everyday, then maybe you will see it) Spain is such a large country and the property market is different across all various locations (true, but is socialist government and fairly high taxes, so your gains on rent, capital gains are there, limited resale market). So how can people put a generalized opinion on the property market on the whole of Spain? (you can look at fiscal levels and buying patterns, there is an oversupply of properties in spain, only the best things get sold. It is economics, supply demand.)

Its like in OZ, when a few states have decreasing property prices. Normally the general public and media would think that the whole property market is crap. But the astute investors still know that there are still good locations to invest in property. (True, but I dont think inland 1.5 hours in the middle of nowhere at big prices is the way to go, mega resort or not, I dont think people want to live or rent there. Spain has some of the best beaches in the world, 95% of the tourism is 10km or less from the coast. (other than big established nice cities like Madrid, Cordaba, Seville etc)

Be sure, the only reason why they want to do something there, is because land is cheap. Time will show, I will wish you luck 180k for an inland plot. Wow, lets ssee 12 months from now. Are you ready with your 16% VAT as well. So 70k is now 80k. We shall see.


Goldberg, if investors are looking to hold this investment on a long term basis (5 to 10 years) (you have to hold 5 years in an up market, otherwise you get hit to hard on taxes, buying and selling. Maybe it is 10 years now. In any market you buy low, sell high. I think you are buying high, and I dont see the possibility to sell even higher. ) after development is approved, i do not see how we can loose money. (if development is approved) Worse case senerio, this project does not get approved in 2 years, we get our money back. (lost 2 years interest on money, what happens if company has spent your money, what you going to do, with lawyer or not) My solicitor is Legalex and they have assured me that getting my money back if approval does not proceed will be very straight forward and would not be a problem.