"They said it needed refurbishing"
Property Buying Advice
How to avoid being ripped off
Free or subsidised property inspection trip
Is there such a thing as a free lunch? You are likely to pay too much for the property in this case. You will need to take your time to check things out for yourself, with your own advisors. One of the companies offering this service marks the properties up by euro 20,000 to30,000 to pay for its subsidised flights. It claims that 80% of customers fall for this ruse.
W from Yorks is in no doubt that you should go.out and look before buying but not on a subsidised trip.
"Anyone looking to invest on the Islands, must visit. There is a big contrast between the Islands. None of this can be gauged by Holiday programmes, A Place in the Sun, or even less by a developer's brochure. There is so much spin going on between the different islands, the only way you will work it out is - GET ON A FLIGHT and see for yourself, as we have done."P from Berkshire had a narrow escape
"I went to a Property show advertised as a large show with many locations, stands etc, when I arrived it was Mark Up only. I was looking for a holiday home..no leaseback, no investment just a little place for my family to holiday. Mark Up advised me I wouldn't get anything under 200K and still today nearly 2 years later continue to call me, even though I advised them I got a little (really little) beachside apartment for 85K over a year ago. I really would never use them or reccomend them, as from the start its big business/hard sell tactics."
Check that the price is right.
How does the price compare with other completed or nearly completed properties in similar locations in the Cape Verdes? J&T from London feel that some may have gone over the top
"We also looked at some properties and we are reviewing our options at the moment. We think the area has massive potential however we do think they will need to review their pricing to make it more appealing to the British market. We thought it was very expensive for an underdeveloped market but in some ways it would be quite nice to keep the mass market Brits away for a bit longer...."
Check prices of several other similar properties that are completed and actually selling. Some promoters will announce ridiculously excessive prices just to fool you. Then they offer a discount.
Is the price from the developer or marked up as a premium by a reseller?
If it is a premium price are you getting extra protection?
Check any claims against likely reality
S from London found an internet site with some amazing claims.
" Clicking on an advert and being diverted to a broker website, I was promised the following:- - Buy property below list price - Buy now pay up to 2 years later - up to 70% capital growth in two yearsa. - guaranteed 5% investment returns - 10 year building guarantee - we will not be beaten on price! I was invited to click for further information. There is no further information but a form to fill in. Surprise, surprise - I then received a call from a Mark Up Man that knew nothing about 10% guaranteed returns or a 10 year build guarantee and claims that capital growth will probably be more like 70%. Pushed further on the above, he then rambled on about their success story and have I heard of them!? How is it that these characters are still in business? There are plenty of good, honest agents selling in CV. Just beware of the sharks!"
How will future charges affect youOne of the largest agents is very adept at bringing up extra charges later as T from Birmingham discovered .
"We have had similar problems with MacAnthony Realty (MRI) - lack of information, spurious charges, misleading claims, over-pricing, etc etc - the list goes on and on. The truth of the matter is that there has been no capital growth (MRI said 30% in year 1) there is no rental scheme in place there is no negotiated management scheme the development in front of ours - never mentioned in pre-sales talks - pops up after 9 months five resorts all share the "private facilities" *MRI furniture pricing is extortionate - I have a really good quote for £6.000 for my 2-bed (fully inclusive of white goods and air-con plus fully delivered, installed and fitted from elsewhere - all with a 3-year warranty! * the latest "gimmick" is the inspection fee - €4500 per property! Get out of here.... The only good thing is the apartment is looking really nice and the location is sound. I just have to hope that sooner or laterMRI move on to pastures new and forget all about us so we can get on with life,"
Land Ownership and Planning Permission
Who owns the land? Is it the person that you have met? If not it is easy to check at the Camara.Is there planning permission filed in the Camara? In this case the Camara stamp will be on the plans. Ask for them and check that what is being built is the same.Who owns the land on either side and in front and what will be built there later? Will it spoil the view? What is the orientation vis a vis sun and wind? There is usually a strong North Easterly wind.Are there any paved access roads, drainage, electricity services? If not you will probably have to pay for them. . Does the plan specify the external and internal colours? Do the dimensions include balconies and corridors or just living space? What is the planned completion date if the building is not ready? How realistic is this date?
What will you receive in terms of guarantees and ownership documents when you pay a deposit or the first stage payment?
How fully furnished will it be - including kitchen appliances, furniture bedding and contents? Get an inventory as it is very difficult to obtain these items in the Cape Verdes. What extras are there to pay for? eg tiling, lighting.Can you get substantial furniture up the stairs and through the doors? Is there any space to park cars and where is the nearest drop off point? There will be more cars in future.Is there any storage space for your possessions when the property is let to others?How high are the ceilings particularly in the penthouse flats? Some do not have standing room except in the centre. In what way has the building been adjusted for the tropics and wind? Or will it require air-conditioningwhich is difficult to install later and costly in the Cape Verdes.Who is the architect? Did the building even have one? Some do not and it shows.T`s profession is selling houses in the Costa Blanca
"We could deal direct with the builders but again the lack
of any guarantees is a very big worry for me, if we do anything
I am now convinced we would have to purchase the land and over see
the construction, this way we can offer guarantees and mortgages
to our clients and at the same time ensure that the build quality
is to European standards.