EMIRATES CITY BUYERS HAVE NO REALISTIC OPTION OTHER THAN TO WRITE OFF THEIR MONEY
I have been reading this forum and come to the conclusion that buyers in Emirates City have little hope of ever seeing their flat completed or their payments returned to them. Therefore, rather than waste time, money and energy persuing a false hope, my view is that buyers should write off their investment, and move on with their lives. The reasons for this conclusion are as follows:
The purchase contracts are between the buyers and the developers. The developers are private companies, with no transparency of their balance sheets (which means some could be already insolvent but we can only speculate as we do not see their balance sheets). So by signing these contracts, the buyer has accepted all the risks of the developer company not completing the properties, due to being insolvent, poor management, incompetence, lack of finance, counterparty risks, other buyers not making payments...etc etc. Another contract exists between the Ajman Govt and the private developers, whereby the developers acquired the land from the Ajman Govt. The Ajman Govt. also approved the construction plans of the developers....and would put in infrastructure AFTER building completion. However, buyers need to be aware that there is no contractual relationship between the buyers and the Ajman Govt....the contract is between the buyers and the developer. So Ajman Govt. or any Govt authority in the UAE has no obligation to get involved in the purchase contracts signed by the buyers with the private developers.
I have read countless posts from buyers accusing the various government authorities of this and that, and asking them to get involved, pay back investors money, etc. But they have no contractual relationship with the buyers. Only the private developers have the contract with the buyers.
Private developers planned to construct the building with finance from the buyers. they have no other source of funding. the banks or government have no contract obligation to fund the construction...the developers have the contarct with the buyers. so if there is no payments coming in from buyers, developers cannot finish the buildings. so if you do not pay the building will never be finished by the developer. but even if you do pay more payments, you carry the risk that the building will also not be finished as 1. other buyers are not making payments or 2. the developer goes bankrupt prior to building completion. As a lot of other buyers are not paying then even if you do pay, chances are the building will never be finished. So whether you make payments or not is irrelevant, as the building is unlikely to ever be finished.
So what to do. 1. do not pay out any more money. 2. write off the money you have paid, put it down to a bad investment. 3. forget about trying to get what you have paid back, as the money has all been spent on construction, administration, office costs, marketing costs by the developer....so even if you do take the developer to court, and you are lucky enough to win the case, the developer has probably no funds to pay out...so legal route would be a waste of time and more money. And the government authorities cannot pay you back monies, as they have no contractual relationship with the buyers, only the developers. If the dvelopers are incompetent, its not the Governments fault. Unfortunately all the commercial risks associated with developer incompetence were transferred to the buyers via the contracts they signed with the developers. This is a commercial reality and the way business is run in a capitalistic system. The buyer takes on the completion risk...caveat emptor.
SO IN CONCLUSION EMIRATES CITY BUYERS HAVE NO REALISTIC OPTION OTHER THAN TO WRITE OFF THEIR MONEY
Wait and watch or write off?
While Ajman government certainly does not any contractual obligations to apartment buyers, it can make visible efforts to bring cash-rich investors from other Gulf countries into the picture, so that the existing profit-sharing plans are thoroughly revised and the stalled projects kickstarted. This will instill some confidence in the future of the project and provide a sliver hope to investors ready to continue making payments if only not to have to write off their investments. But ARRA seems strangely tight-lipped and once ambitious actors like R Holding have stopped making any public statements concerning Emirates City. If investors just throw up their hands and give up hope, then what little chance still exists of the project's revival, even that will be gone.
DON'T GIVE UP, LET WAIT AND SEE
I totally agreed with Qatarman's comments. I believe the the investors still have a share in the project(Emirates City) even if the developers went bankrupt. If new developers who buy over the project at a knockdown price, they would have to complete the project and deliver the completed apartments to investors who had paid down in the first place. It is high time that ARRA and/or R Holding make a public statement about the furture of Emiratescity. If ARRA or R Holdings, or New developers come up and say that they would complete Emirates City buildings that had been started half way already, but would take up to 3 to 5 years more and would not ask for more payments until completion, then it would be a big boost to all the investors who had invested theirs hard earned cash in Emirates City.
i suggest everyone to follow
i suggest everyone to follow this advice it could work, till then try these guys will be punished one way or the other, crazzy fools
Lawless land
So in the end Ajman has no law.What the f... the ruler is there for.He is responsible for whatever happen inside his emirates.Leo have you invested money in Ajman.What is your status.You are on whose side.Speak up, man.Do not phylosophise and give lecture.Are you an investor or are you a spokeman for the cheaters and crooks and liars.In the end someone is responsible for our money invested.
EMIRATES CITY BUYERS HAVE NO REALISTIC OPTION OTHER THAN TO WRIT
What kind of logic is that? Suppose this would have happened in US, Would the the developer would go scot free?
Star Giga Establisment is still doing business in UAE. They should be caught and punished. The remaining stucture should be sold to other developer and the money so received be distributed amoung investors or given to some other developer to complete.
Totally incorrect logic Leo, things does not work in civilised world like this.
.....things does not work in civilised world like this
Well sorry to disappoint readers, it may appear be a civilised world on the surface, but we are dealing with a commercial world, we are dealing with commercial (not civil) contracts between two parties: the developer (seller) and investor (buyer). By signing the contract, the developer (seller) accepted the risk that the buyer would not continue to make payments. This risk was realised as most buyers have stopped payments. By signing the contract, the investor (buyer) accepted the risks that the developer (seller) was incompetent, poorly managed, insolvent, etc. etc. I would suggest that these risks were also realised as can be seen by the graveyard that is Emirates City. Therefore we have the situation where 1. Developer (seller) has no money left to complete building as buyers stopped payments 2. Investor (buyer) left with no apartment, but has a piece of paper (contract) with a developer who is probably either incompetent, or poorly managed, or insolvent (or close to being insolvent) or etc. etc. The government and authorities have no obligation to sort out this situation, because it was a private commercial agreement between two private parties: the developer (seller) and the investor (buyer). If this happened in the US, the government there would have no obligation either...or any other country. So why accuse the government. It is not their fault that two private parties signed a commercial agreement, which blew up in their faces. If you buy a used car and get caught with a lemon, the government has no obligation to help you. This is how capitalism works....so get used to it and learn from this experience. It may appear to be a civilised world, but the commercial world is a different ball game...its a jungle out there...caveat emptor.
LEO
very funny reply by LEO.
Obviously he does not know anythng about a contract and the responsibility of state where contract is made and the difference commercialized and civilized world.
Whatevery contract is made in UAE is bound by the laws of UAE.
By the logic of Leo, if 'A' steels the money from 'B', its the fault of 'B', because 'B' is taking risk by having money. If he did not have money no one could steel it.
Right LEO? LOL
Leo .....The Sadist
Leo has a very sadistic approach...... Probably he has other frustrations and is looking to a vent off by this means. It is quite apparent from the way he has been posting comments. Such persons are 'Fake" as per my terminology.. We can also write similar philosophies ..... It is quite likely that he is getting "cash tip" from either the Developers or Ajman Royals (remote chance) in discouraging investors & forgetting all....
So dear Investors, just laugh, what Leo writes in this forum.... Our hard earned money will not go waste .....
Leo
Leo GET LOST with your theories.You are sickening
What theories
I have been in commercial private business for over 35 years. I have lost money and made money. I have not lost anything in Emirates city because i did not invest there, although I had the opportunity to do so 3 years ago...but I did not. Why not, because i have learnt over the last 35 years that signing a private contract with a private developer for an off plan property, is a very, very risky venture for the buyer. There are many, many risks that cannot be quantified and the contracts are written by the developer, to favour the developer so that the developer holds all the good cards. Would you play a poker game with someone who holds all the good cards? And where there are so many risks of something going wrong? I have learnt through losing money that the ONLY way to purchase real estate property is where you can see it, touch it, walk around it...not by looking at some picture in a brochure publshed by a private developer, showing lakes, green grass, trees etc...like a some sort of dream. If you purchase a used car, you go and look at it, drive it, before you buy. You do not buy it based on a picture. This is commercial reality. If you want to stick your head in the sand and ignore what I have to say that is ok, but sometimes you can learn from good advice based on street experience of others.
Theories are only theories....
One thing is sure that because of the Financial melt down & the subsequent Crunch, this situation has arisen.
During 2005, One of my friends in India had invested in one of "Parsavnath's projects" in Gurgaon, with the same theory that he could see the Project, touch it & walk around it. The completion schedule of the project was by mid 2008. But because of the financial situation around the globe, he also landed in a situation where all the construction works were put on hold & the project looked like a Graveyard (Leo's term). He chased the developer, frantically, day & night to recover his money but couldn't do anything. Finally project was completed only in March 2011
I still believe that the construction done so far in the Emirates City will not go waste. A lot of money has been spent by developers. This is a highlighted problem & the authorities/ Ajman Rulers are very well updated on it. But we should not forget that the financial crisis is still persisting worldwide. Of course the Projects have been delayed enormously but I am confident that these will be completed in coming future.
Leo's theories will lead us no where.......
Cheers!!!!
Leo
I told you to get lost.You are NOT an investor in E/C.So just shut uo .You bore me
I agree with Leo. To much
I agree with Leo.
To much invested to be lost. Even if it takes 15 years to complete.
It is a shame for the country
It is our money we should try all we can to get it back.Even if i am never able to get that money back i will always ask Allah to punish developers like giga and responsible rulers .I am sure if they do not satisfy us it will be them who loose because at the end of the day all of us will die and answer for everything,and that day they will regret, no money will help them.They will definitely be punished in this life as well.Be strong and fight for your rights!
Good evening everybody ,
Good evening everybody , to comment on this aurgument , the land sold by ajman gov or someone who is VIP to master developer like R-HOLDING which again belong to ajman gov who gave lease to smaller developers like star giga , sweethomes etc ... , R-holding responsible for the infrastructure and amenities , lake , mall , schools etc ---- have anyone noticed single street or block in these items , how can i pay money to developer which is still building although slowly when i paid extra money for lake view , my flat next door to shopping mall ,etc .... nothing done by R-holding = agman gov or ruler - i dont know , it is vicious cycle , R- holding must show something from its side so we can feel EC still viable ! i paid 53% but rest of money i can buy ready apartment in ajman or even 1 bed room in dubai in good area , whi is breaching the contract ? it is ajman gov from my view i will not pay single dm to cheeters untill see some progress in infrastructure otherwise consider lost that money but alhamdulla still 50% not paid to those theives whom im sure allah will punish them in this life not after life .
NB/ last e- mail from SH show how they are crying for money to complete the flat and give me the key of the flat without any promiss for water , elec ...... , they are threating me but i said would like to end the contract to retain 50% from what i paid which has been mentioned in the contract , fellows be strong they are in severe thirst for more money to buld their country , they will not give money back for sure but we can press on them too ! salam to all
@ LEO
very funny reply by LEO.
Obviously he does not know anythng about a contract and the responsibility of state where a contract is made and the difference between commercialized and civilized world.
Whatever contract is made in UAE is bound by the laws of UAE.
By the logic of Leo, if 'A' steels the money from 'B', its the fault of 'B', because 'B' is taking risk by having money. If 'B' did not have money no one could steel it.
Right LEO? LOL
LEO GET OUT FROM HERE
IF you did not invest in Emirates City, why then do you even care to write your philosophy?
"forget about trying to get what you have paid back" who are you to say such phrase? Did a developer pay you to come forward to say so?
Listen, if you have a strong reason then speak, otherwise just be silent. Lets wait and see at the end of all this mess who is going to win.
You all just talk!
Nobody, nobody nobody is prepared to do something about it! Everybody just talk! Yes i tent tp agree with Leo. The bastards have realised that we are just a bunch of bitches who only talk without any action. A bunch of empty cans!
Let get together
My name is faisal . I have bought a property with GIGA star properties.
How many of you are ready let me know.
We can meet together and discuss.
Place and Time .
Try you best to contact as many people as you know.
IBN Batutta Mall or any place .
Date and time.
Thursday 7 pm - batutta mall . My contact no 0503838396
IBN battuta mall ..
sorry for the typing mistake.
waaaah
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