Before buying into any development marketed by Right Source Property (http://rightsourceproperties.com), Acorn Property Concepts or BuyProperty4 Less, be sure to do your homework and most importantly, visit the site. I've been caught up in this and after having been promised my deposit was safe, have lost $40,000.
Hidden Forest, near Kissimee in Florida, developed by Zenodro Homes.
Marketed as investment condos 7 miles from Disney, the units are in fact at least 40 minutes drive from Disney. As can be seen from photos below, the development looks to be at a standstill with only a small number of units completed.
Agents and developer maintain that units are worth $280-300,000. In my opinion, they are only worth $150-180,000 ( 5 July, 2008) ..... IF buyers were available. Clearly, buyers have baulked at completing on this deal.
A simple search of local property and a few calls to local agents (Century 21, etc - there are many selling in neighbouring streets) will give you realistic and up to date prices. Comparison's with similar size townhouses will show that there are much bigger properties available, much closer to Disney in completed developments, selling for much less. Compare this to the Dream Resort with no clubhouse, no gated community, no garages and tiny by comparison. A visit to the area, will reveal a modest neighborhood with a massive number of homes for sale. It took me all of one afternoon to come to this conclusion.
Unlicence Agents
You should ask to see the agents licence to sell in Florida (or whatever country they're marketing, Cyprus, etc)- I never did this and hence the loss. Without this, you have little recourse should any of the agreed terms not come to fruition. If they can't produce it, stay well away. Unscrupulous agents use a number of sub-agents to sell units in a development and then distance themselves from promises made by these sub-agents, who are usually just internet based marketers.
In my bad experience (and this is just my opinion and experience), watch out for Right Source Properties (Mr. Adrian Needlestone),Acorn Property Concepts, BuyProperty4Less and JAWS Management, some of whom may already have gone under in the property crunch.
A legal case is slowly being put together:
Failure to ensure safe keeping of deposits:
At issue were misleading marketing of property;
Premature and inappropriate payment of commissions;
And refusal to refund deposits on request despite changed terms (originally a 10% deposit was an integral part of the deal but this changed to 25%, making completion not viable). Seller was therefore in breach but refused to refund deposit.
This info is posted to the net to render an opinion and caution potential investors as to the minefield of online property sales.
