Any nightmare stories - esp how capital appreciation did not live up to expectations?

Z

z106

Guest
Hey - I saw an a from propman previously wondering if anybody had stories about how they made a killing in property.

I am going to ask the opposite - does anyone have any nightmare stories - particularly about how capital appreciation did not live up to expectaion - of if there was any cases of serious depreciation.
Any countries which consistently return these results ? (probably due to inflated prices day one i wold imagine)

Perhaps this way people may learn on what traps to avoid.
 
Re: nightmare stories

are you for real?

Tell you what, mention Almonzora Country Club and see what happens!
 
Re: nightmare stories

The most superb development in Almeria, Spain.

Beautiful units and very low prices -5km from beach.

Practically sold out -around 2,000 units, but they never had a planning permission. Locals found out and reported it.

Building is stopped and the developer is refusing to accept cancellations as they are convinced that the situation will be sorted.

Anybody here get caught?

Have to admit though, when they do get sorted, its seriously good value for money and a beautiful development. €109k for a 2 bed bungalow with parking and front and back garden.
 
Re: nightmare stories

Qwerty,

There are hundreds, probably thousands of horror stories , if you care to look. Capital appreciation - just the opposite in Bulgaria !.

Basic tips for buying anywhere:

Don't buy at an exhibition.

Don't go on a subsidised inspection trip organised by the agent/developer.

Don't believe guesstimates of rental returns and capital growth.

Don't believe promises about as yet unbuilt amenities.

Don't use the solicitor recommended by the sales agent/developer.

Do visit the area under your own steam.

Do your own research on comparable property prices, rental demand length of season etc.

Do ensure that promised amenities are included as a caveat in your contract.

Do use an independent solicitor.

Do accept that guaranteed rentals factored into the sale price.

Do haggle over the price.

Accept that you are unlikely to make short term gains. For example, let's say you are buying via ### in Spain; they are on 15% commission, buying costs are @ 10% and selling costs at least 5%. So, your property needs to go up in price by 30% for you to break even !.

If you are offered property far away, e.g. Florida, Australia, New Zealand, Canada et al, ask yourself, if it's such a great deal why aren't the locals snapping them up ?.

I went to look at a Canadian development a couple of years ago. Found out it was only being marketed to British and Irish investors, because N. Americans knew it was poor value.

Buyer beware.

If it sounds too good to be true - it is !.
 
Re: nightmare stories

You don't have to go to Spain for such stories - Do a google search for "Rossory Quay apartments Enniskillen"

....a property disaster story that was mysteriously ignored by our property media.
 
Re: nightmare stories

are builders now motivated by greed instead of quality?

How could any engineer or architect be so stupid to allow something like that to go on.

Subsidance on sand by the river...anyone here bought in Dubai?
 
Re: nightmare stories

Horror stories - and you don't have to go abroad.

- my brother saw a new house(s) in Galway where the water was being pumped out and humidifiers on to get it ready for sale. I put that down to shocking planning. Building on flood plains etc.

Personally know someone who lived in London and bought at the crazy heights of the 80's boom, commonly known as the negative equity story. Returned the keys to the bank and left the UK.

Worse it that lots of those people who handed back the keys, well they got back on their feet a few years later and purchased again and the banks came after them for the negative equity/costs in the original property.

1970's Ireland, won't say the name of the well known developer but starts with G, housing estates left unfinished, no roads, paths, kerbs, green areas etc. I think this was sorted by it being taken in charge.

2000's - Ireland, estates with no green areas, no gardens, no amenities can't walk to local shop/pub/post office so everybody has to have a car and guess what - no (very, very few) parking spaces. Management company/agent disputes, people not paying their fees (for years) and estate turning into the worst type of corpo estate - think Elephant & Castle.

For those who think this last one is a bit too far - it is of course fiction.
 
Re: nightmare stories

Monkey,

Let's just say the 'nearest' part to us.
 
Re: nightmare stories

Im guessing Niagra, but the U.S. and Canada do share the worlds largest undefended border, so that makes for 5000km of 'nearest' the U.S.
 
Re: nightmare stories

Monkey,

I said nearest to us (i.e. British Isles) not nearest to the U.S.A. !.
 
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