My thoughts after this years visit (for what there worth)

[fatherted]

A short resume of my annual New Year visit to Caleta.

1 Overall It appeared quieter than last year with some of the bars having very few customers in them on a regular basis, whilst some of the restaurants were the same (Nestors apart). 
2 There is also a lot more unoccupied properties around the resort and it looks the same on Nuevo Horizonte. ( although some will be closed until the overseas owners return no doubt)
3 There was a lot more of Eastern European type languages being spoken than I have heard on my previous visits ( a sign of where the money supposedly is)
4  A lot more dog number two on some of the streets
5  In general I don't think  much has altered although what I do find worrying for the near future are the following;-
(a)   Some of the bars especially those providing entertainment will not be sustainable unless more customers can be attracted. One landlord was honest enough to say that in the last 12 months he had lost money every month except for 2 and the Xmas period was decent. With the tourist board widening its recruitment boundaries the good old English sing-a-long  may possibly have seen better days and more continental variants may be the answer.
(b)   Obviously the Euro exchange rate can have a massive effect on the Brits and more might be tempted to go into the A/I hotels. Indeed when I have spoken to some of the bar owners this is their biggest fear. The rate devalued 10% whilst on my visit, and who's to say it won't drop back to 2009 levels.
(c)   The Airlines will also play a massive role in who comes and who doesn't with their prices and Schedules. From a UK perspective companies like Jet 2 will be a welcome addition and maybe stop the "Will they Wont they be coming" annual rumours. Ryanair have just announced they will be further reductions ex Stansted, whether this will affect the flights to Fuerte remains to be seen.
(d)   Like I've said in previous postings I started revisiting Caleta in 2008 on a regular basis, staying long term in S/C  and the odd 7 or 10 days A/I.( but still using the cafes and bars)
Unfortunately  some  of the S/C units are increasing their rents by as much as 30% (to cover their tax liability) . The obvious thinking here must be that demand will outstrip supply in 2014.
In  my case on a like for like basis with this year and obviously excluding flights for 2014 (not yet released)  the total increase will be in the region of £600, to some people it might not be a lot of money but to others it could make the difference  between visiting or not.
When I was having a look around on some of the complexes it was frightening to find on public display the bad debtors lists 1 site had approx 40 units listed  and possibly about €160,000+ owing, another site had 37% of owners not up to date with their payments, and in the near future may have to cancel their maintenance and gardening contracts besides closing the pool.  People on some  complexes were saying about several units having had their water and or electricity turned off and in worst case scenarios units being repossessed with tenants having to go overnight in hotels until the matters got  resolved. I can only see some these sort of complexes going downhill fast and especially if the 12 weeks minimum rental period for residential sites is enforced. I sincerely hope I'm wrong and can continue visiting  this great Island.

[Paddster]

Great post fatherted,i thoroughly enjoyed reading it,some very good points/comparisons there too,re Jet 2,i'd bloody love it if they flew to Fuerte especially if it was from Blackpool which is only half an hour for me to travel,interesting stuff,thank you..

[glenys]

We were in Caleta for New Year and thought it was very busy. Most of the bars restaurants were full and there were lots of people walking around. We have been visiting Caleta for about 12 years so we have seen the boom & bust. The most worrying thing is all the empty properties which is such a shame. I'm sure if the Canarian government brought in legal holiday letting most of these properties would be bought to rent out and have taxes etc paid on them. We also need to keep the cheaper airlines coming to Fuerteventura. Yes, there were lots of different accents but I can't say I noticed too many from eastern europe, but lots from Denmark, Holland, Germany and France.

[KWC]

Very good balanced post fatherted.

It paints a not too Rosey picture without it being too gloom and doom, just harsh reality of life in most holiday destinations in Western Europe.

[woe10]

Sorry Fatherted, got to agree with glenys. on your first point. I don't know where you were going, but so far this year has been very busy. Some bars are well up on last year. The one's that are down are the ones that haven't a clue what they're doing, such as The Dubliner, now gone. (proves my point)

Yes, a lot more East Europeans who are mostly All Inc. and not spending money. Lots more older couples who drink like fish, and are not into Karaoke, Parrot & Snake Shows etc .....

[Voldermort]

Jet2 have said repeatedly that Fuerteventura does not figure in their current plans and re iterated it only recently. Although things do change.

[Paddster]

Have they voldermort ? Damn 

[fatherted]

I was'nt there at Xmas/New Year but I have commented about it being a decent trading period according to what I was told. I can only comment on how  I saw it over the last 2 months. On more than 1 occasion artists have been either asked to finish their spots early or not to bother appearing at all and not at just 1 venue. eg Fri eve 10pm 10 customers, Sat 10pm 9 customers. Obviously places cant be busy all the time but by the same token nobody can run a bar paying staff and artists besides overheads if there is hardly anybody using them.

[glenys]

I think the tourists of old are few and far between ie: sport bars, karaoke etc. as there aren't as many Brits but more diverse types of tourists. Although most Europeans love their football not many want to sit in bars all day watching it. I think that the restaurants and bars that are doing things well will survive the others will go to the wall. They need to cater for a wider range of people now who are looking for a different kind of holiday.

[kezw17]

fatherted...re: your last post about acts not going on or being asked to finish early at this time of year........hasn't happened in Legends...!!! .
Granted, our busiest time of the year is about sept through to april/may (ish)....Your comment would apply to us in the summer months, when there are alot of young families and kids around who don't want what we do, which we are well aware of...which is why we normally chose to close for a couple of weeks then and take OUR holidays...yippeeeee.....a break...lol...

[Ivemovedon]

could be a few troupes of russian dancers might prove popular.

[PeterHeirman]

Change is the only constant in life.
If 37% of the owners can't pay their rent then the Nuevo Horizonte will start looking desolate. Decay will come fast. The management should try to sell the properties fast at a much lower price (compare to the Ireland real estate prices at -60%), but the stubborn Spanish management won't.

There are two events happening at the same time:
a) Less wealthy: The Europeans and Brits are getting less wealthy - thus holidays are becoming expensive and owning a second home just too expensive
b) More offerings: The worldwide market: Canaries was the best offering for sun and fun. Now thanks to the Gulf airlines (Ethiad, Quatar, ...) one can fly for a little more to Dubai, West-Asia - but also Dom Rep, Cuba, Brazil have become within reach for those who still have money.

The problem is much bigger than Fuerte and there is little one can do against these events.
Change is the only constant in life (and business) and those who adapt early to the changes will survive. Those who don't will get killed.

[Can the Man]

Very philosophical Peter

[Paddster]

He's always philosophical and serious is our Peter Can,always.........

[fatherted]

Change is the only constant in life.
If 37% of the owners can't pay their rent then the Nuevo Horizonte will start looking desolate. Decay will come fast. The management should try to sell the properties fast at a much lower price (compare to the Ireland real estate prices at -60%), but the stubborn Spanish management won't.

Peter,the examples I quoted are all in the center of Caleta,, although I did see one complex up Nuevo with a debtors list in excess of €80,000. As regards property prices a for sale notice was put in a window on Amuley Mar offering it for under €107,000. The same properties are now on special offer until the end of April at just under €80,000.

[denboy]

fatherted.where did you see these amuley mar apartments for sale at 80,000 euros.we are in caleta next week and would be interested in looking into this further.

[fatherted]

Denboy,the signs are in the house windows facing the street opposite the road junction below the Costa Caleta hotel and are in both Spanish and English

[fatherted]

http://www.carmenvillazan.com/3/Caleta-de-Fuste-&-Golf-Resort/Duplex/449.htm

[whyme]

If they're being sold by Carmen then don't believe the price. We agreed a price of 480,000 euros for one of her properties in Salinas a couple of years ago only to get a text the very next day saying the price had gone up to 640,000 euros.  We never even bothered answering it.

[Deso]

Just had a look on their site and.......pooff!  they have disappeared. 

[fatherted]

Could they have possibly sold them? All 18 I think not. Looks like someone from the agents reads this board

[fatherted]

Just seen this on another property website


Amuley Mar II - Bank Repossession


This is a great opportunity to buy an Investment property near the Beach. The developer went bust shortly after completing the resort. The bank have now repossesed 18 apartments and are selling 30% undervalue to get their money back quickly. This wont be around for long.

Features


The Amuley Mar complex in Caleta de Fuste is an attractive facility consisting of privately-owned properties with great leisure features. Located 2 minutes walk from the Caleta de Fuste main high street and Just a few minutes' walk from the gorgeous beach, and also within walking distance of shops, restaurants and bars, the Amuley Mar is ideal for families and couples looking for a relaxing but entertaining holiday home.

Located on the Amuley Mar complex in Caleta de Fuste that hosts a shared pool, 5 minute walk to beach, shops and restaurants.

The house is set out over two levels. On the top floor are two bedrooms (one double & one twin) with the main bathroom. Both bedrooms have balconies. The bathroom has a bath and shower.

The ground floor contains the main living area - the living room and kitchen. These brand new houses only need a fitted kitchen to finish them off.
There is also a garage included which can be converted into an extra bedroom giving them the potential of a three bed roomed property.

The house is in a quiet area but you may hear occasional noise. It has access to a shared swimming pool, a east facing garden, a east facing patio area, a balcony. If you are driving there is private parking and a garage with the outside areas of the house having external lighting.

Caleta de Fuste boasts two crazy golf courses. For those who take their golf a little more seriously, it also has a Championship golf course which held the Spanish Open in 2004. The golf course has an academy as well for those who want practice!

There are a wide variety of watersports available (for example diving, windsurfing, surfing and jet ski's) plus boat trips. Our extra-special resident Harvey can also be found in the harbour and awaits your visit!

The large horseshoe-shaped beach is a must for long lazy days. Many sports can be enjoyed on the beach and you will find volleyball courts and football pitches ready and waiting.

For those of you seeking a rental return on a holiday home a property of this class would fetch a rental income of between £400 and £500/week making this an ideal investment property.

Further details on this townhouse and many more holiday homes to rent at: http://www.gipat.com
The developer sold most of the units from €200,000 (£160,000) before going bust. The bank have priced these at €129,000.00 (£103,000) to sell them quickly so that they cut some of their losses. At this price level the properties are a genuine bargain and we expect to sell all of them within one month of 12/07/2010

For those of you who need financing then the bank will offer up to €110,000.00 finance subject to status. This means that you would only need to find €19,000 plus costs (allow 10% for taxes and fees) of around €12,000. So you could get the keys to this superb home with only €31,000 (£25,000) total spend.

For those of you looking to get back in the Property Investment Game this is not an opportunity to be missed.

In fact the bank has already set the sales completion date and booked the Notary for the September 2010. That is how confident they are that all units will be snapped up. So if you are interested please come back to me immediately.

[PeterHeirman]

@fatherted - thanks.

Bank repossessions, unpaid mortgages are all sad events.
Bringing more people to Fuerte is a major challenge which is hard to realize as the middle class is shrinking in numbers and is getting poorer in Western Europe.

Getting wealthy people to Fuerte is likely to be a mission impossible as changing perception (mass tourism destination) takes ages and competition is fierce (many destinations within reach with premium appeal). 

For sure: Fuerte can not sustain on the surfers (surfer, windsurf, kitesurf, SUP) alone.

Maybe after all the oil drilling could bring an outcome for Fuerte and Lanzarote.
The price to be paid could be the unspoilt beaches.

[JO52]

The estate agents I've been looking at is called Solviaproperties.com  They are the main agents for the bank. Last week they had bungalows at 54000 + euros and houses for 48000+euros on montana blanca club but I've noticed they've sold. They still have the amuely mar properties. Go to canary islands on the website. then antigua . Also if you put in pajara I've noticed they have some very nice appartments on jandia golf they've been reduced a lot. Hope this helps.