Wednesday, April 20, 2011

Unfinished condos

This photo shows an unfinished condo project on which there is no sign of continuing construction. Some buildings are nearly complete, but empty. Others are an unpainted shell, without roof tiles. The swimming pool is empty. The deck is a steel frame, but no deck. A very few units are completed and occupied.

This is a sad scene. It reflects a developer who has probably run out of money and, more important, purchasers who have paid money and have not realized the enjoyment and benefits that they expected.

During the boom years of 2000 - 2007, many new condo projects were sold, and it was common for the purchase price to be paid 1/3rd down, 1/3rd when the roof was installed, and 1/3rd at closing. This means that some people have paid a substantial amount of money and it is uncertain when, or whether, they will receive delivery of a new condo.

Developers were building projects with financing from buyers, but if the projects did not sell out or if the buyers did not make their second payments when the market collapsed, some developers ran out of money to finish the projects. Julie and I bought both of our condos in projects developed by the owner of the Tamarindo Diria Resort, the largest hotel in the area. We figured that he would have the resources to finish the projects, and he did. Both projects are successful.

People like to say that real estate is a matter of "location, location, location," but it is also a matter of "timing, timing, timing." The difference between some successful projects and projects such as the one shown today in some cases is that the failed projects hit the market at the wrong time.

This week we are showing photos of Iceland on our Viva la Voyage travel photo site.

9 comments:

Steffe said...

Sad to see.

Kate said...

The timing right now is not great for construction. One can only hope that it changes soon.

Sharon said...

This is sad for those involved and sad for those who have see the unfinished units every day.

Jarart said...

Seeing this makes me wonder, there must be someone who could buy out the original owners and finish the project for an investment....maybe not. I'm just sayin'.

Jack said...

You are illustrating the game of musical chairs after the music stopped. It was all a game and it turned out not to be much fun.

Julie ScottsdaleDailyPhoto.com said...

sad indeed

condo Philippines said...

I think this "Unfinished condos" gonna be a nice condo. Can't wait to see it finished.

-pia-

Glenn M said...

I hope also these unfinished condo will be magnificent after construction

arrielle_p said...

Great blog. Can't wait to see the next update of this condo.

manila condominiums

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