Hi,
I am soon to complete on a 1 bed apartment in Tampa Gardens. I am extremely nervous over this investment now. Can anyone offer any advice on what is happening with apartment prices - I am told they have fallen approx 20% in the last 12 mths. Should I be trying to re-negotiate with the developer? Also what is happening to the rental market? Any advice welcome!
Greetings Twigglet.
How long is a piece of string? - depends greatly on:
- how much deposit you paid & in which currency
- what currency you intend to pay the final balance in
- which block you are in & what your exchange options are, eg, block A to block C & what the cost increment for the switch is going to be
- whether you can re-write the contract & qualify for the 5% tva rule (meaning a saving in excess of 10k euros in almost every Tampa case so far we've worked on)
- what your rental expectations are
- wether you intend to furnish the apartment
- how many bedrooms it has (1 beds are currently better inverstments than 3 beds)
- how long your investment plan is, ie, when do you need to realise the investment.
- completion date, or at least the date when your finance is required.
We have several Tampa clients currently & some have (wisely & successfully) proceeded to completion & occupancy, whilst others have (wisely) terminated the contract, without compensation, but still, in the overall picture are better off at least in the medium term (5yrs).
One cleint we currently have has offered his deposit for sale at greatly reduced discount (you can see this on our site),& will similarly reduce their loss to almost zero if successful, whilst still offering the perspective buyer an 28% discount on a 1 bedroom apartment, block C (2010 completion). This client moved his Block A purchase
So, in summary, its not a simple answer. It is based on data, your data. In summary, your answer should be drawn from a simple spreadsheet with the various options factored in. Eg, assumtions of 50, 60, 70 & 80 % long term occupancy, similar factors for rental income, plus furnishing & running costs. In the finance world, this is called flexing the data (or extrapolating the variables). & it is important you flex all variables so you know the effects of any given outcome & proceed knowingly. That way, if you do proceed & you spot/ are advised of a trend, you can act quickly.
For example, what are the effects of rent dropping by 20-30% (as it has in Tampa) for 3 years? currency dipping for 2 years etc? If the blip doesn't affect you, ignore it. Fear spreads rapidly & disproprtionatly in these situations. You can avoid this by arming yourself with various data.
If you need any furhter advice, assuming you still need assistance, feel free to contact us in Brasov.
