Hi guys,

I am thinking of investing in Marbella Royal Suites.

Unfortunately I am not allowed to post the URL but if you google it you should find it. You can also find it on a website called ownerinvest.

Please can you give me your thoughts on this investment.

It is a condo-hotel type investment. 100% non-status mortgage on interest only basis. It is run buy a management group known as Kasamia.

Entry cost is around 15000 Euro and potential upside of 1000 euro per month after mortgage with about 50% occupancy and no hassle of finding tenants, maintenance, etc. It also offers personal use for 56 nights a year at a minimal fee.

Any comments?

Thanks

Kenny

Hi
This is my opinion, as I have had dealings with Kasamia, they seem to have been set up to market investments which are easy to rent. I dealt with them on Casares del Sol Suites, they were in the sales office for 6 months, they produced a brochure and were very much promoting that it would be easy to by one of these properties and not have to worry. Go forward 7 months they disappeared from the sales office and the building has now slowed down to nothing. In my opinion they are just another sales technique. If you look on the Kasamia site they do not have any hotels which are built all are under construction. It just made me wonder
Regards
Natalie

Seems to me as a time-sharing system..........
am I right or not ???!!!

Hi law,

Nah.....definitely not timeshare. Time share you pay for for a specific number of weeks accomodation at a resort. You actually own nothing other than a right of tenancy for a short period.

This I actually will own the unit and all the owners put their rooms into a rental pool and the hotel is our "tenant".

You could compare it with a furnished holiday rental. You have people that stay there, bringing you a return and if it is empty you can go stay there for free. The difference is that the hotel has a keen interest in getting people to stay there, whereas your average holiday rental agent is unaffected if your holiday flat stands empty.

Hi Natalie,

Thank you for your input. I read it with some consternation. I did google Casares del Sol Suites and have read up on it. I can see where your concern stems from but my thoughts are as follows....and please comment if you think I am off the mark. I am here to learn.

Casares del Sol Suites problems seem to stem from the fact that the developer has not delivered a completed product to Kasamia.

Kasamia is not in a position to do anything with the complex until it is delivered to them in a usable state, since they are purely a operator. I do agree that they are a new kid on the block, but I guess they have to start somewhere.

They seem to have quite a good business model and I doubt they would have anything to gain by making a development look like a good buy. I think their involvement would have been genuine, but at some stage they need to dump the project if the developer is not delivering the complex to them.

Please share any other thoughts you may have.

Kind regards

Kenny

Personally I would steer clear.

Be careful that the operator is not just blaming the developer as a handy excuse. Or they may even be in bed together, probably related!!

Has the developer/operator a decent pedigree? Have they had success with previous similar schemes? Have you spoken to any happy investors or seen credible testimonials?

The fact they have disappeared from the sales office does not fill me with confidence.

Just my opinion.

Hi
As we are based here in spain we get an unbiased view and also a long term view.
Kasamia was also used as a selling tool for Manilva Spa Resort which has also ground to a stand still.
I will elaborate on my background, I have been in real estate here on the Costa del Sol for nearly six years, my partner has been in real estate for 20 years.
We have seen the larger companies come and go and they will use anything to sell a property.
I feel that any company endorsed is also getting something from it and I would suggest that the company either be a sister or closely related.
I would never suggest a client buy purely based on a return offered by the developer, if it seems to good to be true it more likely is.
Why not look at anyone of the deals developers are now offering. They offer properties below market value and the long term rental market here is still strong as we have many clients who are moving here but do not want to buy as they think they will get a bargain in 12-18 months time.
There are many properties which are selling for at least 100k less than they are being valued at.
Don't buy into the brochure as it is in the end just a piece of paper.
Regards
Natalie