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This is an interesting article....
http://gulfnews.com/business/property/new-law-offers-hope-to-investors-o...
Copyright © 2007-2011 Emirates City Forum
This is an interesting article....
http://gulfnews.com/business/property/new-law-offers-hope-to-investors-o...
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I hope arra will follow this too...no more blackmail by developers to cancel units and keep all the payments.....
Decree is for Dubai
Hi,
The decree is for Dubai and not Ajman. Also if developers are not registered or have
run away with money or are in jail, we are still in the same bad situation as before.
Has anyone done any swaps
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I wonder if the eye tower by rholdings falls in the first or second column.....Should be first....
Worst Law Ever!
This would be certain doom for Ajman and not a very good law!
The 30% if not the fault of the developer is simply a cash grab by the government who "sold" the land for approx 30% of the project cost. If the developer can justify "No Fault" by blaming the master developer and the master developer has made poor financial decisions, then he simply needs to make problems for the developer. In this case 30% of investor money is retained, which was paid to the master developer for the land, which then was ultimately paid to the government. So, investor looses, developer walks away even and Master Developer/government gets paid in full. Who made this law again???
Consider what is going on in Ajman. Developers with this law will claim failure to provide services, infrastructure, residency visas, act... which intern caused investors to stop paying, which intern forced the project cancellation... Project gets canceled and developer is legally safe, but R-holdings gets to keep the 30% of all investor money that was paid to them, through the developers, for the cost of the land. Now the developer still owns the land as it was paid for with the investor money, can relaunch the project at a lesser price as the land is now paid for. They basically get the land for "Free" as the original investors paid for it, but are no longer entitled to it. The law says "project canceled" not "land lost".
Very cleaver plan by the government, but we see what they did there!
Worst Law Ever
Welcome back smitty....Valid points but what are the exit options for investors who want out?
Two months ago, I was told by one of the developers that 30% of the total cost of the unit was cancellation fee. Is it better to lose 30% of amount paid, or 30% of the cost, or the whole payment?
Worst Law
Thanks for the welcome, actually never left. Have been just observing as the news I'm expecting hasn't hit yet...
I missed the point that it was 30% of amount paid and not 30% of the total unit price...
However, even if its the former, there should be some provisions for people who were given a discount if they paid their amount in full in exchange for a discount, which many did. Also, the investors in projects that are canceled should continue to own the rights to their, or any, unit of equal value on the land in question. Meaning, if the project is canceled then the investors will retain a lean on the property for the amount that wasn't refunded. This would be paid back to them in them from any future land sales, or applied as a credit for any future developments on that land.
Worst
Care to elaborate on the expected news?
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Giga star is in the process of registering all their projects in emirates city..This I found out from arra today during my visit there...
Worst law ever
Nothing specific, just something good. Still believe in the EC and am riding out the storm till the sunny days arrive again.
check this news
I invested my hard earnings in Emirate city
I do not know if this news could give me and you ( my fellow inverters) some little hope to sleep for few nights.
just check it out.
thank you
http://www.ft.com/cms/s/0/b62074ae-425b-11df-8c60-00144feabdc0,dwp_uuid=...
smitty i agree Musafir
smitty i agree :(
Musafir Moderator
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This is an interesting article......
http://www.gowealthy.com/gowealthy/wcms/en/home/news/real-estate/Dubai_o...
After visiting the
After visiting the offices
After visiting the offices of R Holding regarding my investments with Sweethomes in Emirates City Rainbow Towers this February the following news was relayed to me as an update.
1. There is no set start or ending date of the main infrastructure e.g. roads, shopping Malls, Mosque, Office Blocks etc
2. There is no set start or ending date for the main utilities e.g. Electricity, sewage, waters etc
3. There will be NO Lake in Emirates City anymore due to problems with water becoming Toxic in Dubai projects. (although I paid so much extra money for a Lake View apartment.)
4. It is possible that Emirates City may be finished in Phase's in the next decade so shall remain a building site for many years to come.
5. There is no possibility for a price adjustment from 500-600 Dhs to today's market rate of 200 Dhs per sq ft.
6. His Highness Sheikh Rashid bin Humaid Al Nuaimi, Head of Ajman's Municipality. is the Sole person behind this project and is the Sole Owner of R Holdings which guaranteed investors to come to Ajman and invest money and it is R Holdings that are solely responsible for all the main infrastructure in Ajman.
7. The developers are now collecting money as per the New Amiri Decree passed last year on construction linked payments by ARRA ( His Highness Sheikh Rashid bin Humaid Al Nuaimi, Head of Ajman's Municipality) and shall be paid out as per completion of building but this does not take into account that there shall be no roads, lights, shopping mall etc there, so we shall be left with a completed project in the middle of the desert!
I was given an email address to write to His Highness Sheikh Rashid bin Humaid Al Nuaimi with my concerns and I urge you all to write to His Highness Sheikh Rashid bin Humaid Al Nuaimi with your concerns and put pressure on the developers to re adjust the prices in Ajman, to stop threatening demand for money, to pay compensation for delays, and to cancel those affected by the changes in the master plan if they wish to exit and link the Escrow accounts payments to the overall master plan project completion rather then individual buildings as we were sold a Building in Emirates City and not the Desert with no power, water and sewage.
In my view most developers shall complete the buildings to 90% and receive 90% of the funds from escrow accounts then take of with our money leaving us with incomplete buildings with no utilities and infrastructure as there shall only then be 10% balance left to pay on completion. In this way the developers are in 50% profit and have no interest in our investment. The Government need to take a guarantee from developers and hold on to there passports or a big financial deposit to make sure they are still around until the full main project is completed including the main infrastructure.
It was the sole duty of R Holdings to check the compatability of the Lake and feasibility of the overall project before selling and launching the project, any change in the master plan shall void all contracts under the trade and descriptions act.
Please note the below email address is to Shk Rashid personal office, please refrain from any bad language and only write if you have something of value to say. The better the statement on your email the more serious it shall be taken to the Shk himself,if abuse is received I am sure they shall close down this email address and we shall all loose out this channel of communication.
The email address you should all write to is: aoa@rholding.com