Oceanville

It is a sorry sight - earlier today

Thank you for your prompt replies

Still the same scene of advancing dereliction. I live just along the road.

Even the weeds have given up growing.

I have neither seen nor heard anything new for months.

Interesting though if you go to Google and tap in 'Oceanville Albufeira' the first half a dozen or so listings are for booking agencies, so anyone casual observer would be forgiven for thinking that it is an open and thriving concern!

You've prodded me to go by that way, camera in hand.

Hopefully this will be the end to this debacle and a new beginning for Oceanville and all the people who bought apartments there. It is/could be stunning. the location is excellent and the facilities are fabulous. Let's hope they get there act together !

There's a couple more of Sunday's Oceanville pictures at the end of this album

https://skydrive.live.com/redir.aspx?cid=6a2a1c7daaee306d&page=play&resid=6A2A1C7DAAEE306D!8266

So, banks with money? This could be interesting with everyone else pleading poverty

The recent rain has encouraged the weeds. Here's a shot taken Sunday with the view everyone paid for but may never get.

From what I can see of the OV situation, here is a prediction.......

Once the original developer is truly bust and ends up walking away, then, and only then will the bank act to minimise the haircut they are about to experience. It is just a waiting game for the banks. But until the developer is bankrupt or similar, their hands are tied.

Until then it probably looks like and is (in all reality) a loose loose situation for prospective buyers. All the lost opportunity.

From the banks perspective, the bank will probably have advanced XX% (perhaps 80 - 85% of the original sales price) in mortgages to the developer and quite possibly - less than amount is due from the prospective buyers. Remember that my argument is hypothetical - but it might not be that far from reality.

The bank probably uses the highest realistic value in order to prop-up the asset value (on their balance sheet). Their new purpose will be to seek to get as close to a break-even situation as possible, given the several highly profitable years during which they charged the developer interest  - they may not loose too much in the end if they sort it out FAST.

Bottom line is that the bank that advanced the mortgages to the developer is not lost. They have first call on all the assets. They do not strictly have to honour purchasers contracts - but they will probably offer the promissory buyer the opportunity to close but they don't have to be terribly nice about that.

Prospective buyers are welcome to chase after a new shell company that has absolutely no assets, or an older company that carries a load of debt. The point is that they will (probably) get nothing if the choose to chase the developer, no matter what they do.

As I see it, there may eventually be 2 alternatives, pay the balance and own the property - or walk away and forget the deposit.

To purchase will offer closure, but at what price. There will be no nice trimmings as promised by the developer. Just the property. The communal area's will probably generate a small income for the bank and any hotel/bar/restaurants will be leased to a large hotel chains who can start-up operations using their own resources.