palmela village

[pangbp]

Hi, I also bought a 1-bed apartment in 2008, wonder if anyone known whether is it worth to continue the purchase, has the price gone up or down? We are at the moment trying to get a mortgage on the apartment, having paid about 30% initially through ***. Have we made a big mistake, or is it better to cut the losses?
Thanks. BP

 

[pangbp]

Hi All

So disappointed that no one reply to my comment.
Just seen a 2-bed apartment in Sebutal selling for 98euros, and my much smaller studio flat is costing me 104euro, being ripped off.......

I am about to pay the 70% cost of the studio flat, should I go for it? Unfortunately I am not Irish, ha ha.....

Thanks
BPPang

 

[Lysos]

I think you have answered your own question. Cut your losses & walk away, lesson learned. If a 2 bed is on offer at €98k, in today's market it might get €80k - if they can find a buyer. So, yours will be worth less & studios are never in great demand, anyway. If your mortgage would be more than @55% then rentals won't cover mortgage costs, never mind service charges, council tax, maintenance, furniture replacement etc. Do not throw good money after bad.

 

[pangbp]

palmela

Hi Lysos

Thanks for the very sound advice. Very much appreciated.

Shall not venture into overseas property investment for a very long time....

Thank you again

 

[barricades]

Hi there, I'm looking for some advice about completing on a couple of studio apts in Palmela village.

At the moment I'm at the stage of trying to sort out a mortgage for them and I'm having problems being able to afford them in terms of all the extra costs that seem to be associated. If anyone has gone through the process and wouldn't mind offering a bit of advice would they mind please Private Messaging me?

Thanks

 

[lena green]

Dumping the Euro

Portugal said today they may dump the Euro, this may make some massive drops in property values and build costs, they say.

 

[CoCoChanel]

Palmela Village - Requesting Return of Bank Guarantee

Hi,

On the 27th of December I received an e-mail from Pelicano outlining their new "strategy" for rental payments.

Though the english seems relatively good and the message quite clear I am hoping that is not the case. See below for text of e-mail:

"It is with great pleasure that we welcome you to Palmela Village Golf Resort.

To optimize the rental payment that is due to you and to avoid further delays that can cause prejudice, Pelicano has decided to create a new strategy regarding the payment of the same, and give you same advantage.

Pelicano will pay four quarterly instalments and in exchange you will have to return us the bank guarantee, the payment of such income shall be made only upon delivery of the bank guarantee.

The remaining payment of these incomes will be due upon the expiration of the Lease Contract or in the last two instalments of the same, as appropriate.


Please don’t hesitate to contact us for any clarifications needed, we will be pleased to assist you."

From what I can see here, they are threatening to hold back payment unless you give up the bank guarantee. This is the same guarantee that is a legally binding contract that ensures this payment.

My obvious question is how stupid would you need to be to give up the bank guarantee in order to be paid money that is already legally guaranteed by that very guarantee?

Anyway, at this stage I would really like to meet up with any other Palmela Golf Resort owners to discuss these issues. Requests like this are extremely worrying and all I can say about their request is; Are they insane??? As soon as you give back the guarantee you can kiss goodbye to any further payments.

I will be seeking legal advice on this but I am fairly sure that what they propose is highly illegal and is designed to prey on those who don't know any better.

Let me know your thoughts anyway.

CoCo

 

[barricades]

It all sounds a bit dodgy to me. If you could have your time again would you walk away from your deposit and not have completed?

 

[CoCoChanel]

Reply to Barricades

Hi Barricades - I suppose it all depends on how many apartments you have signed up for? Two of them from what I understand.

To be honest, I've been in Palmela twice and my family have been there on numerous occassions. I do really like the place and the feedback I have got from friends and family is positive.

I never expected a massive return on this investment or any at all to be honest. I am quite happy to pay my mortage over its lifetime and own the property outright afterwards. If you were looking for a quick return then unfortunately don't think that was ever going to happen.

 

[barricades]

Hi Coco,

Yeah it was a couple of them. I've heard all the good things and when I was there (albeit a couple of years ago) the place did look good spec and their plans looked nice.

The concern I have is hearing that people have not being getting paid their guaranteed income and that some have started receiving emails asking them to give up their bank guarantee.

If Portugal goes up the swanny or even drops the euro as some have suggested then I'm going to be paying 400euros a month per apt on an interest only mortgage to keep hold of a 40,000 euros deposit on two flats that I'm meant to be buying for 105,000 each when they're probably worth no more than 80,000 at the moment and perhaps significantly less should economic things go bad.

I was over in Portugal in Sept and their news was full of bad news about the economy and we can see the problems that Ireland are having.

Also if Pelicano are having difficulties and aren't paying up then it looks like throwing good money after bad.

Did you buy apts? Does anybody have an idea of what rental income can be reasonably expected at the moment assuming pelicano goes bust?

 

[pangbp]

palmela village apartment

Hi

I have already dumped the apartment in July, 2010, losing over £30k. I now know that there are lots of problem with the builders to guarantee income for 5 years. Now I can sleep easy, but still dreaming of getting my £30k back, wishful thinking.

Good luck to you all

 

[barricades]

Hi Pangbp, was the £30k you lost your deposit? Did they not come after you in the courts for breach of contract and try to get the rest of the money off you?

 

[pangbp]

palmela village apartment

Hi
It was my deposit, and I have not pay anything more to the builders, only a small sum to the solicitor, who did some work, about a few hundred euros (I think, can't remember the exact figure).
Hope this will help
Thanks

 

[pangbp]

Hi Barricades,
So far there is no court case, their letter just said that I forfeited the purchase of the apartment and the deposit. My solicitor said that the contract signed was as above if I did not come up with the money on the apartment completion. Hope it helps.
Did you also sign the contract with the deposit too?

 

[barricades]

Hi Pangbp, my contract just says that I'm in breach of contract if I don't pay the remainder of the purchase price within X amount of days following them contacting me saying the apts are built and ready to be completed on. And that if I breach the contract they keep the deposit.

It doesn't specifically mention that they would take me to court to retrieve the rest of the purchase price but I've seen plenty of court cases on the news here where similar things have happened and the builder keeps the deposit and takes the customer to court to retrieve the difference between the agreed purchase price and the amount that the apt is now worth. I can probably afford to loose my deposit but I'm not at all keen to have to pay anything else after that.

 

[pitbullwise]

get out now.

hi if i was you i would gladly lose my deposit as im having trouble getting the rental out of them and i am in the process of getting the solicitor to get the bank guarantee sorted.j

Hi Pangbp, my contract just says that I'm in breach of contract if I don't pay the remainder of the purchase price within X amount of days following them contacting me saying the apts are built and ready to be completed on. And that if I breach the contract they keep the deposit.

It doesn't specifically mention that they would take me to court to retrieve the rest of the purchase price but I've seen plenty of court cases on the news here where similar things have happened and the builder keeps the deposit and takes the customer to court to retrieve the difference between the agreed purchase price and the amount that the apt is now worth. I can probably afford to loose my deposit but I'm not at all keen to have to pay anything else after that.

 

[hopeful]

We agreed to buy a 1 bed townhouse apartment in 2007, apparently they will be in breach of contract if it's not completed by April 18th 2011 (we are keeping our fingers crossed that its not!)
Funnily enough, back in November they rang us up out of the blue asking if we wanted to change apartments - to be closer to the golf course. We thought his was a little odd, maybe it's because they know our reserved apartment will not be completed on time.

Anyone in a similar situation, or can ffer any advice as to what we do next.

 

[tapedeck]

Bank guarantee

Hi everyone, am new to this site . Have an apartment in palmela village which is finished about three years now have been out there three times and found it a lovely place to holiday. But now like most here have not been paid for most of last year and my rent contract is up in july at wich point they will owe me for 6 payments . The bank guarantee will only cover 4 payments it seem . Has anyone given up this guarantee and got paid . And what happens then .

 

[Frederiko]

Hi Tapedeck,

Pelicano is a very difficult company to deal with. They simply promise a lot but actually don't delivery anything on time our as promised. Although I cannot comment on your specific case of buying/ renting, because I don't know the details on how that works. On my case, which is different, cause I brought a villa and live in Palmela Village full time when I'm not abroad (which is about 50% of the year). So also got my share of problems with Pelicano with defects on my property still to be fixed after 5 years.

I didn't want to accept the house as it had those defects, but after some time, my laywer just advised to take it and fight later (it was better to have it fully on my name if Pelicano goes bankrupcy)

I guess that if its already difficult in presence, dealing with it from abroad must be a big challenge.

Having said that, I still enjoy living here, the villa is a dream house (even with the defects),25km from lisbon, 10 km from Arrabida mountains (which has amazing beaches and is UNESCO protected). And specially is very safe for children, with lots of space and 24h security (whom are very nice people by the way)

By the way...someone mentioned on this post buying an appartment in Setubal. Yes it is nearby Palmela Village (17km) but really, don't go live there!


So, best luck with Pelicano (kick their as*).

Hi everyone, am new to this site . Have an apartment in palmela village which is finished about three years now have been out there three times and found it a lovely place to holiday. But now like most here have not been paid for most of last year and my rent contract is up in july at wich point they will owe me for 6 payments . The bank guarantee will only cover 4 payments it seem . Has anyone given up this guarantee and got paid . And what happens then .

 

[brenlu]

Hi Tapedeck,

Just to let you know we got 4 payments when we returned our Bank Guarantee(using our Portuguese Solicitor)- it took about 3 and a half weeks till we had the money in our hand. There is a big group of Palmela Owners now meeting on a regular basis in Dublin.