Pinhal Village, Perola Da Lagoa, Silver Coast, Portugal

[tecnic]

Could any fellow investors in this project please e-mail me. I am trying to contact those involved to discuss possible finance problems that have arisen.

 

[manor park]

Hi

Although I am not in this project I am investing in portugal and would be interested to hear the problems you are having as they may be things that could affect myself and other investors too.

MP

 

[villasluz]

Hi,

would you please be more specific...
Which exact type of problems have arisen?
We are a real estate agency here in the Silver Coast and up to now, we didn`t here about problems, but would be happy to have a look what is going on.

Villas Luz

 

[All at sea]

Hi Tecnic, I am also purchasing there and it has gone very quiet on the bank front. From what I hear the bank may be using the purchase price for their valuation purposes, but that is not confirmed.

 

[jdmat1]

Pinhal Village

Hi Tecnic, I am also purchasing there and it has gone very quiet on the bank front. From what I hear the bank may be using the purchase price for their valuation purposes, but that is not confirmed.

We have just had our mortgage offer sent through. The banks valuation will come in between 95 - 100% of the purchase price according to the bank. Whilst this is lower than we would have liked - I do know that alot of work has gone on behind the scenes to get to this stage.

One bank offered us a mere 80% of the pp and placed us in an impossible situation.

There are a few options on furniture packs to.

I am happy to facilitate a forum off line so that we can exchange ideas on rentals/ furniture and finance etc .. If anyone is interested - PM me

 

[All at sea]

Thanks jdmat1, I would be interested to discuss, just not sure how to PM on this message board.

 

[jdmat1]

Hi - you can email me at [email protected] or jeffm@iqproper

 

[jdmat1]

Sorry, try again. You can email me at [email protected] or [email protected]
Just trying to offer help and guidance to any investors as completion nears

 

[manor park]

Jeff

Is that mortgage through a bank in Portugal ? Just wondering how things were moneywise over there with mine (Fuseta) due to complete later in the year.

MP

 

[jdmat1]

Hi

Millennium gave us 80% eventually after some hard work. The valuations weren't as we had hoped, but at least the banks and the valuers exercised some discretion and changed their offer.

With the economic situation the way it is - I believe investors should realign their expectations now re exit strategies etc ... Still believe that Portugal is a great and safe long term bet

Jeff

 

[manor park]

Jeff

I agree and am looking to this as a long term investment, just concened on the valuations and mortgage availablility. Ours is due to complete at the end of the so hoping things have "calmed" down a bit by then.

MP

 

[ieross1]

Pinhal Village

Hi

Millennium gave us 80% eventually after some hard work. The valuations weren't as we had hoped, but at least the banks and the valuers exercised some discretion and changed their offer.

With the economic situation the way it is - I believe investors should realign their expectations now re exit strategies etc ... Still believe that Portugal is a great and safe long term bet

Jeff

Glad to find this forum. I have been pulling my hair out trying to get a straight answer from Millennium Bank, re valuation and mortgage approval. I have now been given an informal completion date of 3rd week in April but still have no documentation from Millenium confirming valuation or mortgage approval despite several e-mails. Based on what I am hearing, if they value the property at the original purchase price and only offer 70% LTV I will be 10% short after only paying a 20% deposit....what happened to the amazing under market value claims at sale?? I appreciate the economic climate and the fact that investment companies are hardly known for their accvuracy at the "pre-sale" stage but I was quoted 43% uncder market value for Pinhal with 34% quoted as the a very conservative estimate. Does anybody else have views on this. I would appreciate any feedback fellow investors can provide. Thanks!

 

[All at sea]

I agree about the supposed 43% discounts, the original valuations always looked on the high side. However as the comparisons were to two neighbouring top quality golf resorts there the implication is that Perola is comparable to them. Having just got back from viewing the site this simply isn't the case. The other developments, whilst huge, are far superior. They were also sold as golf villas, but the proposed golf course at Perola is completely missing. Perola looks as though nothing has been done to it in years.

The bank valuations do look low (I have heard nothing from the bank nor about completion dates) compared to other properties in the area which are being marketed for around €1,600 sqm or slightly higher. But worryingly one property at Perola is being marketed at original purchase price, so maybe the banks are correct...either way the final product is not what was originally promised.

 

[ieross1]

Perola

I agree about the supposed 43% discounts, the original valuations always looked on the high side. However as the comparisons were to two neighbouring top quality golf resorts there the implication is that Perola is comparable to them. Having just got back from viewing the site this simply isn't the case. The other developments, whilst huge, are far superior. They were also sold as golf villas, but the proposed golf course at Perola is completely missing. Perola looks as though nothing has been done to it in years.

The bank valuations do look low (I have heard nothing from the bank nor about completion dates) compared to other properties in the area which are being marketed for around €1,600 sqm or slightly higher. But worryingly one property at Perola is being marketed at original purchase price, so maybe the banks are correct...either way the final product is not what was originally promised.

Thanks for the repsonse. Very sad to hear that the end product doesnt live up to the marketing hype. I fully intend on raising this witn the company I purchased through, Ready2Invest. I can accept a margin of exageration in the sales pitch but this appears to be far more than an overexageration and I am very uncomfortable with the whole deal. I am currently in the process of seeking legal advise and will share the feedback I recieve with this forum. Regards.

 

[merlia]

Nice post. Your work is appreciated.

 

[ieross1]

My solicitors (PL) are arranging for new valuations from Duetsche Bank who are offering 80%LTV as an option in case Millenium Bank dont come through. I will keep you informed as to the outcome of the new valuation. Also had some feedback from R2I but the usual backpeddling expected from an investment company that has no more to collect from your pocket!

 

[All at sea]

Finally have had a mortgage offer through from Millenium. It's not too bad as its 80% LTV, and their valuation is pretty much the purchase price. Although their additional fees that they have yet to explain do push up the APR heavily.

Some good news from the lawyers in case people haven't heard. Planning appears to have been granted for an 18 hole golf course (I am not sure that this can be correct and that it isn't a 9 hole course as the area looks quite small) and plans to allow further development of 300 villas at Perola have not been given approval.

 

[jdmat1]

That's good news. Most overseas banks are restricting themselves to 70% ltv - so we should welcome the offer of 80%.
Our villa completes this week and our furniture goes in on Thursday. I'm staying there on 13 - 19 April, so if anyone wants any photos taking - just let me know.
Interesting news on the 18 holes - are you sure this is right? There is room for an additional 18 holes, but as a keen golfer - I really don't think the area needs it. Praia del Rey, Bom Sucesso, Royal Obidos and Faleisa del Rey are all on your doorstep.
A full golf course will no doubt enhance the values - but the last I heard, the council had environmental concerns over too many golf courses around the lagoon.

 

[All at sea]

Like you I have my doubts about the 18 hole course, but the lawyers met with the "Vereador” (the director responsible for the building license) at the City Hall so it is straight from the horses mouth so to speak. We'll see...

Good luck with the villa, I did not realise they were being completed so soon. Out of interest, who are you using for funiture? Enjoy your trip!

 

[jdmat1]

We're sourcing the large items (minus the sofa) from the Furniture pack Co in Brighton. Not sure you'll get a pack now as they've imported all the stock and are on site now allocating the items. I can pass on their details if you want or get them to call you? Alternatively, you could use Silver Coast Hospitality.
We're sourcing the other items ourselves locally. Found a really helpful English couple who can supply lights and curtains fully fitted. Any one interested, please email me at [email protected]
Currently looking at options for cleaning and maintenance too and will have info later this week