Quote:
Originally Posted by georgihh
Hi Roshan
Your thoughts are very sensible but the tread is about Eden Garden.
People are not happy with the delay of the project as they are loosing money.
A year delay will cost them at least 50000 DHS (per studio).
And I don’t think if the construction takes longer, the property will be of better quality, for the simple reason that the cost of the materials and labour are going up and the contractor will try to save money.
So one year delay will cost you not only money but quality.
Further more the price of the property goes up at the time of completion and is difficult to sell if on hold .
As I can see some of the people paid everything in advance and I understand their frustration. But as I said Dubai is full of surprises. Some people are lucky (like Roshan) and some are not ( like the people bought in Eden Gardens).
So far very few have lost money from purchasing a property in Dubai and that’s a good sign.
My advice is - don’t gamble with all of your money and keep some for rainy days
|
Hi Georgihh,
I was talking about Dubai and did not run away from the subject. What holds good for Dubai holds good for Eden gardens as well.
Investors invest in real estate for 2 reasons capital appreciation and positive cash flow. What you are saying is that investors in Eden garden will loose Dhs 50,000 per studio. If the property has appreciated by 15% per year
( more considering that building mateials jumped by 40% ), your Dhs 50,000 is overidden by the appreciation, so what's the problem.
Quality issues another valid point from your side, that's valid when you deal with fly by night developers, however when you deal with a good developer like Lokandvala, reputation for them becomes more important than cutting corners.
As I have said earlier on, Lokandvala are class "A" developers in India. They will not risk their reputation for 1 project. Eden gardens is like a drop in the ocean for them.
You make investors who invested in Eden gardens as if they have lost everything in life. Not the case, give it time and see how well it will do.
Delays should be expected when going for off plan properties. That's one reason why people go for ready properties paying a little more.
Another valid point you made is " nobody looses in property " and that not only applies for Dubai but anywhere in the world. Markets will correct and they will come up again.
That's the reason Robert Kiyosaki ( a high school drop out ), Russ Whitney ( used to work in a slaughter house ), Dolf De roos ( a Phd in engineering but didn't work as he made more from real estate ), Donald Trump ( the world knows about this man ) stuck to real estate as that was the key to riches. If you have a chance read the following books, it will change the way you think about real estate :
Robery Kiyosaki : 1) Rich Dad - Poor Dad 2) Retire young retire rich.
Dolf de Roos : Real estate riches
Russ Whitney : Building wealth
Donald Trump : Real estate 101
These books changed my way of thinking.
Regards
Roshan