Andalucian or Abandoned Dream Homes?

Having just returned from a recent jolly to the Costa del Sol to catch up with some old friends, we were very surprised to see one of Spain's property behemoths with empty offices. The very hefty presence of Andalucian Dream Homes on the Fuengirola Paseo is no more!

Obviously some googling was required and it would seem that this news seems to have got lost in the obsession for recession and other gloommongery type news at the moment, but that have been a couple of interesting points made out there.

Craig at Marbella guide seems to have been the first to notice what was going on after some contact from the public, and according to his posting on MarbellaGuide.com it would appear that he has not been able to reach them either at the ADH numbers, or the international arm, Dream Homes Worldwide.

After some further looking around, it would seem OPP did release an article about one of the former members of Andalucian Dream Homes, David Honeyman. Honeyman is apparently still a "non active partner" in ADH but now involved as a consultant to newly formed Property Revolution.

The article itself can be seen reproduced on Kyero (OPP unfortunately needs membership to read) and as an outsider, the article itself does read rather tongue in cheek, featuring some interesting excerpts of a conversation with Mike Liggan of DCC International Property.

Both Honeyman and Liggan appear very adamant and quick to point out that the new ventures "are not an offshoot" of their former companies and are "something new and fresh"

Honeyman with Property Revolution to a degree can be forgiven to an extent, Property Revolution is selling fractional ownership in Spain. One has to wonder a little at some of the claims they make in places on their site such as "zero risk property abroad" (We're sorry, but there is no such thing as "zero risk") and more importantly the claim that mortgages are available, yet when you go to the Fractional Ownership Consultancy finance page that they recommend, you come up against the following quote,

"An exclusive FOC finance package for shared freehold/fractional buyers. The Fractional Ownership Consultancy and an English bank are currently collaborating to provide regulated mortgages for fractional buyers. This means that when buying a second home, mortgages could be available using, as security, the buyers fractional certificate only.
The Fractional Ownership Consultancy anticipates that this scheme will be rolled out into the US and other markets in due course."

Hmm, So, maybe, one day, possibly, I could get a mortgage on a fractional? If it is in the USA? Or possibly in the UK? Come on guys, tie it up a bit more than that! We have commented on fractional ownership before, and once again, nice idea, makes sense on paper if you read it all quick enough, but when it comes down to it not quite enough homework as been done.

To be honest, in our personal opinion whilst it is possible that fractional ownership may well be regulated at some point in Europe and the UK, at the moment it isn't, and until it is, it's basically an extended and even more expensive timeshare. Make no mistake, when something needs to be sold from the angle that it saves you money so therefore it must be an investment, (which is a ploy that most fractional agents will use) alarm bells should be clanging. Saving is what banks are for. Investment is where risk takes place. So when someone gets a chance, I am sure the world would love to know about "zero risk property abroad".

As for DCC International Property, Liggan harps on about "completely separate company" etc etc in the article, but also states they "occasionally sell MRI property in Portugal, DCC is mainly focusing on Spain."

Hmm, so what is Aspen Valley doing on the site then? Is that not an MRI Construction development anymore? We would link to it to show you, but for some reason the completely unrelated entities that are MRI and DCC really don't like that apparently.

Anyhoo, whilst the property industry news specialists OPP continue to announce that all is well in the overseas property world, and that there is no smoke or mirrors or anything like that, and act as a very efficient announcement platform to say your old companies are not related to any "new and fresh ones", and whilst the British media still can't decide if house prices are rising or dropping, we are off to see what else lurks in the dingy realms of the investment property world.

We will return soon, with so much gossip out there at the moment, there is a lot to investigate. Tales from the public about offers to switch from one development to another are rife at the moment, some feasible, many not. We are trying to get to the bottom of it all, and rest assured, the moment we do, good or bad, it will be here!

Turkish Ministry Talking Turkey About Titles, Tax and General Tattle Tails!

Well after spending half an hour on the title, Here is a hot one for you!

In an article released today by OPP (Overseas Property Professional) we have been informed of the following.

"The Revenue Administration department of the Turkish Ministry of Finance has launched a two-prong investigation into the financial behaviour of both buyers and agents in areas popular with international investors.The Ministry is believed to have contacted all relevant banks and financiers in Turkey for a list of private individuals and corporations that were given finance to buy in the country and are cross checking these details with title deed records to obtain accurate information on what was sold at what price to international buyers. The Ministry has revealed that it is looking for discrepancies in agents and developers accounts after conducting an initial investigation last year that is believed to have turned up many irregularities."

Now there is a surprise! Who would have thought it? This news as far as the industry is concerned is not all that new, it has been well known that investigations were going on, and the Turkish Government could do with the money in its bid to get inflation under control to finally get into Euroland so it can have some kind of financial base.

The article goes on to say that they have contacted the equivalent of the land registry to see how many foreigners have registered property, and whether they are declaring tax on them.

For some reason unknown, the Turkish Government do appear to be hell bent on ruining their own tourism business, entrance into financial stability, and any chance of expatriate business communities flourishing. Only earlier this year were mortgages made available under fairly heavy conditions, and still no real resolution has been passed as to whether you can actually buy property for investment or otherwise in the country as a foreigner.

Just a thought, but Turkey, if you are listening, (and not busy working on your Eurovision entry for next year) here's an idea.

Make a decision as to whether you want to allow foreigners to buy first or not.

If you decide you don't, fine, we'll all move on.

If you do, then sort your act out! Create a proper property registry, and not one on the back of a fag packet in bar, and make everyone register in the first place!

A couple of quotes were also made in the article about the regulation of agents, or rather the complete lack of it, claiming that;

“There are hundreds of barman, waiters, jewellers and sweetshop owners selling property who are just out to earn a fast buck, with no concern for the protection of the clients interests let alone the legalities and procedures."

Hmm, I seem to remember we have come across exactly this kind of thing before, not so far away on the other side of the Mediterranean and the pieces are still being picked up now.

I must state that I would have linked to the entire article, But OPP have a big shiny login page in the way.