The keys, Quinta do Lago.

Hi,

I just wanted to pass on my findings from my own due diligence on a property purchase. I am of the old school but think blogging, the Internet and freedom of speech are wonderful.

I looked at a few developments and resales in Quinta do Lago, Algarve, Portugal. The main one was key lago, verde, and pointe, by QDL investments, or E3 properties.

The sales office is impressive looking, just off the main shopping, eating, drinking area of Quinta do Lago. I was initially greeted by a lad I can only describe as a used car sales person, with his opener how you doin'? anyway after a little chat and a lot of squirming on his part. I left with a brochure. I was informed that the shared pools would feature fibre optic constellation lighting - when I asked what this was he could not answer! After one visit I was pestered with emails - I love email but would prefer a courtesy phone call. I made a few return visits and met some of the team! I believe if you do consider to buy here there would be some heavy heavy discounts in light of the desperation of them to sell. Anyway onto my findings.

1. The development did not have full permissions at the time (it may do now) although Liam assured me it did.
2. It is NOT bank guaranteed - pay a deposit at your own peril and be prepared to lose it.
3. The development is heavily financed. Dicey area, the bank could pull the plug at anytime. When I pushed about this I was told the bank was financing the development and would carry it on with or without the developer (if they disappear). In which case I would want a letter from the bank, not the developer.
4. Density, it is extremely dense, and you don't have a plot, it is a complex so no garden area you own yourself.
5. Price, it is ridiculously overpriced. I could get 3 or 4 villas in Quinta do Lago or surrounding area for the price of one on this development.
6. The company, they have only completed one other development. Upon inspection it was prone to some simple (stupid) design flaws, and the soundproofing was terrible. The promote 2 other developments on their website, one in Ireland - this is one of the directors houses! The other was a block of flats in London. The MD was involved in an information technology company previously, which I presume was sold. The company has subsequently gone bust.

I was initially interested in the development (providing I could negotiate the price to a reasonable level). The idea is good and different, but there are too many things that are worrying, and led me to not go ahead. I realise you have to take a bit of a risk but I believe the risk to be calculated and the negatives are far greater than the positives.

Finally, I asked around the local camp on thoughts and (this is sensible but speculation) with most property people sitting waiting, who would QDL investments sell to. The answer mainly was Russians. Another agent in the area told me the Russians were invading and paying for things cash! Now forgive me but I don't want to be surrounded by 'cash' buyers and would prefer my neighbours to be UK/Irish and mortgaged to the hilt like myself!

Please comment or contact me if you have any more information as I would like to know your findings.

Andy.