Alcudia smir - pros and cons

tootsie

I've heard good and bad things about thsi development and just wanted others opinion on what they think. I realise that the quality of build is not really superior compared to 5 star resorts, but at the same time prices are cheap and location is excellent.

So what do people here think....does it stack up overall as an investment?

Advice apppreciated....

camel

Fadesa started in Galicia as a family business building low quality housing for the fisherman of the region ( Please be advised that Fadesa was sold of last year to a smaller company called Martin SA, from Madrid)

The poor fisherman were only greatful that some has built & provided a them with a property that they could afford. In the 80s, Fadesa bought a piece of land in Marbella from the than Kuwait investment office and got into overseas and so called luxury end of the real estate market.

This made Fadesa management were very arrogant ( I am saying were as the new management has to be tried out) and still felt that they could treat their overseas clients with the same disdain, even though they were paying top $, as they did to thier compatriat fishermen. Fadesa also did some social housing in Morocco for the local market before they got into Saidia.

Their finishing is poor, materials used are of lowest of the low quality and they grossly over built, pools are small. I have no reason to beleive that they will change this formula and in Morocco, they have no obligation to uphold EU standards ( not that they even cared about it ) There is a private forum on Alcudia smer, just google it and read it to your heats content.

tootsie

I got a PM from someone on this forum, and wanted to get advice from others on what they thought about these comments:

I would give this one a miss for reasons.

1) There are 1000 flats being built with the same size in the area.

2) Fadesa has a very glossy imagine but under the surface its very inefficient, and incopmetant. please google alcudia smer private forum and read to your hearts contents.

3) The development has been touted as luxury, The kitchen is not included with white goods, you will need butane gas, there no lift so the butane gas bottles have to be carried on floors. No underground parking.

4) There will be over built and if you need to check out go to Guadelimina in Marbella or Cosra Esuri.

5) Quality of material used is very poor again check out as stated in (4) above.

6) There is no after sales service, Fadesa does not even have such a department.

7) As part of the land purchase, Fadesa has given some flats to the farmars/land owners. Fadesa will not tell you this and this could affect your investment. Some part of the land was former cemetry.

8) The pools Fadesa build are very small.

9) Fadesa will sell land to other developers and you will have no control of what they will do as Fadesa has done is Saidia.

When asked about the fact that investors have been hot on this deal, the response was:

1) people buy on impulse.
2) people buy on glossy brochure.
3) The is saying by the rip pff agents in marbella which says that that buyers leave their brains at gatwick
4) The sun shine & wine gets to work
5) Sales talk saying, what a fantastic price/gain will you get
6) Agents will not give you the the full details.
7) people do not do any due deligence.

Personally, I agree with some of the comments on here - not all....but what do others here think? Anyone invested in alcudia who would like to give us some insight on the above??

Thanks.

btlwinner

Tootsie,

I’ve bought on this development and at the moment I am confident that not only is it a good buy for a holiday home but also as an investment. There are a number of reasons for this i.e.

1. I have a 2 bed penthouse on the third floor with direct views of the sea, which I paid an excellent price at approx 1,000 Euros Sq. M.
2. Compare this to a lot of other projects in the Mediterranean, it is very good value for money.
3. The build quality may not be all that great, but remember the development is 4 star and not 5 star like the other projects demanding silly money.
4. The resort is located on Morocco’s to be ‘Golden Mile’, one of the most exclusive tourist regions in the country.
5. It is just 5 minutes from the famous Marina Smir and Tamuda Bay where Morocco’s King Mohammed and the Saudi Royal Family have holiday homes
6. The property is almost 10 minutes walk to the long sandy beach.
7. All terraces are subtly elevated and enjoy dynamic sea views.
8. Southern Spain is only half an hour away via the ferry at Ceuta, and Tangier airport is within reasonable driving distance.
9. There are excellent opportunities for capital growth and rental yields in the long term, even though there may be 1000 or so apartments in the area.

Also, there may be no dedicated car parking (there is ample communal) and no lifts to carry the butane gas bottles, but as I’m still relatively young I’m sure I can cope going up 3 flights of stairs on a few occasions…

The only thing that does concern me a little is the cemetery you mentioned… Not that’s, worrying…..

tootsie

btlwinner,

are you looking to flip this, or keep it long term? reason being, i wanted to get an idea of the resale market for these units. is there a strong resale market at the moment, or are most of the buyers holding on to their properties?

I see your points and again, they make sense too. At the moment, I am really CONFUSED!!!

hopefully, my brain wont fry and i'll be able to decide before that!!!

btlwinner

Tootsie,

I personally am looking to hold for a few years and use as a holiday home. I may end up flipping but not at the moment.

Saying that, I think the units already have a resale market and with prices having gone up in the various phases, my unit is already worth about 145,000 Euros. That’s almost 25,000 Euros more than what I paid! Albeit this may only be on paper, I can see that agents are moving this product and that there are only very few good units on for resale.

Finally, I see that Camel seems to have put some negativity in to your head... What I would recommend is taking a trip to the site and seeing for yourself what the area has to offer and then perhaps approaching Fedesa and taking a look at their set up and some of their finished or part finished product. That way, you can form your own opinion as to the quality of investment Alcudia really is.

camel

btlwinner:
It was not my intention to put any negativity. The reality is that as a prospective buyer one is excited and it flows through. The agent is not going to give you the downsides.

Like everthing in life property investments has it plus and minus too, so all I have done is set out the downsides in this case it was Alcudia,

moroccomania

tootsie,

I've looked at this development and although there are a few minor issues with it like camel has pointed out, I wouldn't really worry about it. Remember that morocco is a poor country and emerging property market. One of the risks of investing in emerging markets is to have to deal with a few minor qualms.

Alcudia from an investment stand point is really good and you are sure to make money in the long run. Its location is excellent, and ripe for the tourist market.

I would invest if I were you - provided you are getting a good plot at a good price.

Good luck!!

camel

moroccomania:
Not knowing which unit you end up with and thus view etc, over built, quality built, small pools. In my opnion they are not minor issues.

Yes, Morocco is a poor Country and yes it is an emerging market. The issues that I have raised has got to do with the developer and not with Morocco. E.g quality built/finish, materials used, small pools, has very little to do with Morocco being poor.

btlwinner

Camel,

I’m not basing my opinion on what an agent has told me or what I’ve read in some glossy magazine. I am a full time property investor and have purchased numerous properties all over the world, all of which to date have proved to be good investments. I always base my judgement on facts and figures and my own research and that includes visiting the area. I never buy without doing my due diligence.

Bearing this in mind, every project has some positive and negative points. For me, Alcudia didn’t have many negative points and by keeping a close eye on the buying price, inc. associated costs, as well as potential rental yields and capital growth, I still believe that it will pay in the long run.

I also don’t understand your point about not knowing which unit you will own!!! If you buy off plan, this is what happens sometimes. I know the Alcudia plan was revised after several months due to some issues with planning, but it is now quite clear and I know which unit I’m purchasing.

From all your comments, it sound like to me that your either a disgruntled Fadesa purchaser or an ex employee. So which one is it?