You have to get the title deed of your investment in your name.

I think that's the 1% that the developer charges and gets the apartment registered in your name.

Regards

Roshan

Dear roshan ,
This was not mentioned in any of the papers I signed.
I believe I have been mislead . The developer told me that the contract for now is the offering paper that i fill with installments and all agreement terms and signed by the developer . I can sell the property based on these papers and it is a matter of paper work that takes about 2500 Dirhams as transfer charges and not a % of the value of the property , also isn't the whole building registered in the city where the building is located , lets say jumairah south, i was told that i get the final contract from the jumairah south village people ? or sports city? I know in my country , we have to go to court and register the property of i have paid all the installments , other wise it stays in the bank's name that financed the property for me . So I pay court charges and registration charges were 2% of the value of the property but now it is a fixed fee, to encourage people to invest and register thier properties, for before this law was imposed , a property changes hands 5 times and not even registered once .
please advice me .
I asked the developer for the contract and the developer told me that i will get it from the city and not him?????????????? their papers are all in order RERA, ESCROW I CHECKED ALL .
REGARDS

Originally Posted by Investment_uae
Lets talk about cost of construction. Anyone here a Quantity Surveyor? Or Project Manager?

I just need to hear their views about whats going on with contractors in this market.

Alot of contractors are very worried, I was just talking to a client of mine and also a bank manager about how there is an element of fear.

When a contractor agrees with a developer a price per square foot, now what they do, is they always put a clause in the contract to say that if the prices rise above 25% (example) they will share this loss with the developer.

The contractor cannot pay the rise in construction prices off his pockets alone during the term of construction.

Developers like Damac are facing a huge problem with this issue. They are not making much profit, cos the cost keep getting closer to the selling price, especially when they promised to provide such flashin futuristic towers. Its gona cost them alot, and I am not sure if they can deliver what they promised they will deliver.

If they cant, then they will delay it until they can afford it or get finance help from the banks.

Just wanted to share this concern in the market right now.

Inv.

Investoman is right with the fact that the developers do collect installments and more installments and put them in banks earning measly interest rates , while commodity prices like steel, sand, and cement prices have gone through the roof . In my country we have to import sand today at 150% of what they were of 6 months, that is if you are lucky to get it in time , and some people if u don't have guards near your building site , will come and steal ur sand in the middle of the night. Also steel is up 200% in the price from last September , so who ever promised quality at certain prices one year ago and haven't started building yet , is doing it at
huge losses. Don't be surprised if these developers start mixing more sand than cement and cheat in the building material and provide very bad finishing , just to meet cost .
also microeconomics says when demand meets supply we reach equilibrium and market stabilizes and if there is any increment in the prices of the properties it will be minimal like 2.5 to 3 % like Germany and Europe.
and from what I have seen in Dubai and saw it with my own eyes when Nakheel canceled our appointments . Almost all the people that got in while we were out in the heat , were coming out with huge grins , then people chase them and offer them 7% and 10% for units that they just bought 30 minutes ago, this is in addition to the 2% transfer charges the the second purchaser will have to pay to the developer . it is like a fast forward movie, and it made me sick to the stomach. All of these buyers were not end users , they were all speculators, and that is how prices are inflated based on nothing , it reminds me of the in INTERNET bubble , where some stocks don't even exist any more , and of the Almanakh stock crash in the early 80's in the gulf where people lost their shirts .
If you had come to me 5 years ago and told me to buy in Dubai i would buy blindly , but today it is a different type of market altogether. and no one can predict when it will crash but we have seen evidence of three different companies canceling projects , and giving investors non-logical reason's. wait until one of these big ones fall and it will be like a snow ball.
SO in conclusion i say easy come easy go the same way these properties are going up so high so fast in the year 2010 they will go down so fast , i predict that is when we will reach equilibrium and demand meets supply.
regards
P.S. Sorry for all the gloom and doom but I am a realistic person and believe things in Dubai have gone mad, and in abu dhabi it started mad.

Dear Investor, Diyou buy nething in al badrah.If u did den gud cuz badrah is at a premium of 15% now and is expected to reach 25% at the end of this month after the second launch.If u did not get nething do hurry and get sumthing I have a cuple of units available .Get in touch for more assistance. my e mail is kamran@karwnre.ae

Could this be a perfect example of the way things are going now. IMHO, as i stated before, the buyers are doing all the chasing and getting fobbed off at the end of it but now it seems that the developers cant seem to get any buyers.......

Repesentative from DAMAC have sent me three emails so far, the most i got since property development has started in Dubai and Abu Dhabi. They are actually starting the chase !

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What do you think? Good deal?

the telling signs of a crash eh

When people buy like what you mentioned, people should start getting worried. More people buying because X,Y,Zee made money gets the developer all wound up...and the result is inflation of prices.

I am happy with what I bought 3 years back and a serious correction should not rock the boat. Will see how these will move before making another.

Regards

Roshan

Agreed, new projects are being launched at over 2K per square foot while finished projects in Dubai Marina and JLT are being sold at around 1500-1600 per square foot. 1600 for something now or 2000+ for something 3 years down the road

1600 now should be a lot more than 2000 in 3 years inflation adjutsed and compounded, even at official inflation rates! Think present and future value of money.

buy somthing at 1600 now ready better than paying 2000 instalments for 2 years
just do NPV and u will see what big difference it makes
most importantly this money is jammed and cant use it in anything keeping it to use it for istalments so you earn nothing on it while waiting to pay for the next instalments , that is if you get stuck and cant flip it fast

Much better if cash available, buy ready properties and gain instant ROI of 9% which of course excludes the appreciation.

Buying off plan is a big head ache at times. The projects tend to get delayed. I have 2 projects which are delayed by over a year

Regards

Roshan