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Should ex MOD homes be the subject of property speculation?
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by PANORAMA reporter
Property speculation in Gibraltar has been rife in recent times, even with properties sold by tender by the Government. While re-sales may not be prohibited by the tender conditions in some cases, the question is whether this is morally right in a small place like Gibraltar where housing remains a problem.
There should be a clause that properties are sold for the successful tenderer to live-in, but in some cases where this is stated the clause is said to be flouted.
In recent times it was easy to buy anything and put it up for sale the next day, and sales could be achieved. Many may have gone from rags to riches in record time.
Certainly, the private sector has been rife with cases of quick sales, with people making a good profit almost overnight - even before the properties were built.
The situation is becoming increasingly more difficult, as the financial crisis begins to bite. Now, there are those who lament that selling a property bought on a speculative ticket are not that easy to sell - and this brings in its stride a series of complications.
A ramification of property speculation is the claim that developers have been buying units in their own developments for subsequent re-sale by themselves at higher prices. If this is so, can it be right and proper?
What is something else is what happens to property put out to tender by the Government itself.
There is the case of Rock Cottage, a historic building that goes back to the 1800s. When the tender was granted some 3 years ago, it was stated thereon that it was "for the sole use of residential accommodation for the applicant and family..."
Rock Cottage is now advertised for sale. It is described as being in a 'superb location,' and that it is set upon a 3,690 sq metre plot on Europa Road.
The price of re-sale is given upon application.The tender prices was over ?1 million.
Was this property every lived in by the successful tenderers?
Whether it was or is wasn't, should the Government release exMOD properties that are not for the exclusive use of residential accommodation for the successful applicant and family? Should they be promoting property speculation?
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