International City - Greece

[Howsbuya]

I'm not sure what you mean by 8% rental agreement + management fees. Are they not the same thing? Here (in Dubai) the agent charges the tenant to rent the property, not the owner. Then, if you want management sevices they charge 6% of the rental per month. Your Service Charges are about right.
Rent you can expect is 50,000 -55,000 (40,000 - 45,000 for a studio).
Yes it sounds like you are being overcharged, but if you signed a contract agreeing to this I don't know what you can do about it.
On the plus side the prices are rising at the moment - 1 beds for Dirhams 550,000 - 600,000 - but , of course, because of the exchange rate you lose a bit there.
There is now talk of a 2 tier service charge which could entail 2 payments, but no solid news yet - but they could go up if it happens.

Originally Posted by Friend1422

Hi folks,

I purchased a 1 bed apartment in International City - Greece, via MINC / ROMOTEC / DUBAI GUERNSEY, about 3 years ago (nearly completing end Jan / Feb). This company has tied us into an 8 percent rental agreement on the original purchase price + Management fees for 2 years. Which is about 30,000 AED obviously the rent today is around 50,000 AED. The service charge on completion was 8,500 AED. So leaves about 21,500 (3,000 GBP per year at today’s rate !!!!!!!!).

Any one know what the service charge will be for future years, will this stay the same, go up or go down?

Any one dealt with this company on this forum? There contract also says they will make me pay for maintenance and utility charges that will eat - even more into the rent I get from them.

Looks like there 2 years 8 percent rental agreement is a total sham. I have tried to get out of their contract but they keep telling me because I signed up to them 3 years ago they are now going to hold me to it. I looks like I might have to pay them even more than what I receive in rent each year from the maintenance and utility charges.

Any one know what to do ?????

[Howsbuya]

oh ... utility charges should be paid for by the tenant - and that includes the DEWA (Electricity and Water Authority) connection.

[mk2301]

Originally Posted by Howsbuya

oh ... utility charges should be paid for by the tenant - and that includes the DEWA (Electricity and Water Authority) connection.

Hi howsbya,

are you still in dubai, what do you plan to do with your aprtment if renting are you going through agent or doing it yourself ? What is the internal finishing like is there a lot of snagging?

sorry about the questions but need to know!

[mk2301]

Originally Posted by Friend1422

Hi folks,

I purchased a 1 bed apartment in International City - Greece, via MINC / ROMOTEC / DUBAI GUERNSEY, about 3 years ago (nearly completing end Jan / Feb). This company has tied us into an 8 percent rental agreement on the original purchase price + Management fees for 2 years. Which is about 30,000 AED obviously the rent today is around 50,000 AED. The service charge on completion was 8,500 AED. So leaves about 21,500 (3,000 GBP per year at today’s rate !!!!!!!!).

Any one know what the service charge will be for future years, will this stay the same, go up or go down?

Any one dealt with this company on this forum? There contract also says they will make me pay for maintenance and utility charges that will eat - even more into the rent I get from them.

Looks like there 2 years 8 percent rental agreement is a total sham. I have tried to get out of their contract but they keep telling me because I signed up to them 3 years ago they are now going to hold me to it. I looks like I might have to pay them even more than what I receive in rent each year from the maintenance and utility charges.

Any one know what to do ?????

Hi mate,

looks like you are in a pickle, will try to help. First of all look at the contract you signed does it say a MINIMUM 8% if so then you may have a case speak to you helpful agents and say that the market has changed and you expect no less than the property to be rented out for less than CURRENT MARKET rates (point out RERA is compiling these rates for apartments in dubai). If they disagree mention bout the minimum and if you are still not satisfied with your answer hint about going to RERA and complaining or the dubai muncipality. Also ask if they are registered proeprty agents in dubai if so ask for their number.

let us know if this is of any use

[reddevil]

We are also with MiNC Properties and have signed up to the 8% agreement. The main advantage to us was that this 8% is guaranteed whether the property is tenanted or not (this is obviously a financial risk for them). You will pay the initial service charge and maintenance charges with any agency you decided to choose - so no difference there. For us, this was a choice we made and it is not possible to say whether it has been the right one yet as this will depend on how much demand there is for the Greece area??

Has anybody actually found a tenant yet? I guess not because keys are only just being handed over and there must be a lot of competition from the other thousands of properties in International City?

[Howsbuya]

Hi All
In answer to a previous question - yes, I am currently in Dubai.
I received my keys about a week ago and last weekend went up to see the apartment. I'm really happy with it - it's quite decently finished, the bedroom is quite big and the ceilings are high which adds to the feeling of spaciousness. Obviously, it's not huge but better than I expected. I spent a very peaceful, relaxing day there last Friday.Greece is a pleasant area - near the lake, which looks lovely.
It took 2 days only to let out the property - apparently there were 2 couples "fighting" over it and it's been let for Dhs55,000 per year from 1st Feb with 2 checks. The agents connect DEWA for the tenants - tenants pay the water and electricity costs.
So all in all I feel very happy with it as an investment. The agent told me he could sell it for Dhs600,000 and it's a great rate of return.
Best wishes
HB

Originally Posted by reddevil

We are also with MiNC Properties and have signed up to the 8% agreement. The main advantage to us was that this 8% is guaranteed whether the property is tenanted or not (this is obviously a financial risk for them). You will pay the initial service charge and maintenance charges with any agency you decided to choose - so no difference there. For us, this was a choice we made and it is not possible to say whether it has been the right one yet as this will depend on how much demand there is for the Greece area??

Has anybody actually found a tenant yet? I guess not because keys are only just being handed over and there must be a lot of competition from the other thousands of properties in International City?

[mk2301]

Originally Posted by Howsbuya

Hi All
In answer to a previous question - yes, I am currently in Dubai.
I received my keys about a week ago and last weekend went up to see the apartment. I'm really happy with it - it's quite decently finished, the bedroom is quite big and the ceilings are high which adds to the feeling of spaciousness. Obviously, it's not huge but better than I expected. I spent a very peaceful, relaxing day there last Friday.Greece is a pleasant area - near the lake, which looks lovely.
It took 2 days only to let out the property - apparently there were 2 couples "fighting" over it and it's been let for Dhs55,000 per year from 1st Feb with 2 checks. The agents connect DEWA for the tenants - tenants pay the water and electricity costs.
So all in all I feel very happy with it as an investment. The agent told me he could sell it for Dhs600,000 and it's a great rate of return.
Best wishes
HB

hi howsbuya,

good news nice to know demand is strong for greece. If you dont mind me asking what agent did you use to let out the property? how far sre you from the lake? and lastly any bad odours?

[Fernandes]

Originally Posted by mk2301

hi howsbuya,

good news nice to know demand is strong for greece. If you dont mind me asking what agent did you use to let out the property? how far sre you from the lake? and lastly any bad odours?

Do you know the current selling price for a studio in Greece Cluster "L" would appreciate if someone could be very honest and say the current price. The unit is ready for occupancy.

[Fernandes]

Originally Posted by mk2301

hi howsbuya,

good news nice to know demand is strong for greece. If you dont mind me asking what agent did you use to let out the property? how far sre you from the lake? and lastly any bad odours?

Do you know the current selling price for a studio in Greece Cluster "L" would appreciate if someone could be very honest and say the current price. The unit is ready for occupancy.

[mk2301]

hi fernandes,

studio prices are in the range of 360K aed to 385K AED. My advice will be to hang to IC property unless you need cash as values are likely to increase further as with any property the longer you hold on to it the better.