Progress Report Row A Towers(1-5)
Dear forum members,
Hi, everyone talk about other towers and rows? noone seems intrested in talking about Gold Crest Dreams 3 . Where r the buyers ? so much satisfied and sleepy, no queris. Is there who has invested in the said project and has any info about it plz pass it for me, as i'm greatly worried , cause I live in Pakistan and need updated information, which i never get from their office despite many calls. Moreover i want to check whether u ppl who have booked units in GCD#3 r paying instalments on time and getting reciepts on time or not? As i paid the August intallment on the 2d of August but haven't recieved any reciept till today (20th Sep).
Thanks
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Delay
Hello, Stargiga is always very late with receipts. I have invested in GCD 2, have still no receipt for the august installment either, but I am in e-mail contact with Stargiga. They have sent me a statement saying that my august payment went through, yet as mentioned before, still no official receipt. It is the same at every installment, but in the end you get the receipt. Things might be slow due to Ramadan.
As of progress on GCD3: When I visited Emirates City on July 25th, the site of GCD3 was used for construction material for GCD 2. GCD1 and 2 are well under way (with a about one year delay for each project), but I cannot confirm that any work had started on GCD3 as of July 25th. First they have to clear the space, then they will do soil testing and only then groundwork will start.
situation on row A
some one have news about the no progres on GOLDCREST dream2?
situation on row A
site was empty , no workers there.
I have heard thet the works will restart , end of Jan 2009.
We will see!
GCD2
At least Goldcrest admits now, that the site of GCD2 is on hold. However, they do not come out with a reason yet.
GCD 2
I spoke with someone at Goldcrest Smart City yesterday and he said construction should resume within the next month (but I have heard that many times before). Really, I don't think the delay is as big of deal for GCD 2 investors as the Emirates Cities infrastructure won't be ready for the original handover anyways. Plus, as a big bonus the 8% rental guarantee starts in Dec of this year (the original handover date), so investors are going to get paid weather the flats are handed over, or not! :) ;) :)
Goldcrest 1
Anyone have any update on GCD1. Our handover is suppose to be in July 2009. So will we also start to get the rental in July?
they refused to pay rental
i have talked to them about rental guarantee, but they refused imm. to give any rental as rental will start only after completion and handover its a contract breach but still its hard to go to court alone due to high fees involved, several investors can do it jointly
GCD3 Status
Hi
Last week I was at the site of EC .There was only few people working on the GCD1.There was no activity in A1 - A3 (GCD2) and the GCD3 (A4, A5) site was used as a stock for the GCD2 construction materials. almost nothing has done for the gcd3 yet .The next day I went to the ETA star office and one of the in charge staff explained that the 6 to 12 month delay is expected in hand over date and it will officially will be announced. She told that for the current situation we do not have to pay the next installments until they give buyers the new payment plan and it will send through the email. She said that they are in the way of opening escrow account for their project and the construction will begin in a few months (less than six months)
GCD 2
I think we are safe with the rental guarantee unless the vendor comes out and forces us into a new payment plan as the payment plan attached to the contract has the rental guarantee built into it. Second, the contract at no point links the rental guarantee to completion of the project. It gives a specific date when the guarantee will start. I think the process would be to deduct the rental guarantee from the payment, as shown in the payment schedule. What can the vendor do, take me to court for non-breach of contract?
rental guarantee
i am also owner of GCD1, i allready talked to them, they explain they guaranteed for taking our apartment on rent and give us specific rent. but this is possible only when we get the apartment from them as owner and give back to them on rent. i.e. rent can be given only after completion of project ( in other words after handover ) till now we are not 100% lawful owner because its not handed over yet.
but still i feel GCD1 investors are in better position than other project investors we can surely stop the payments and ask for rent after date mentioned in our contract ( not all investors have this benefit because some of them did not sign for rental agreement )
completion date mentioned in my contract is july 2009.
GCD 1+2+3
I don't believe for one second, that we get rent from the indicated dates in our contract unless the buildings are up and running. I must agree with the point made above, that a completed building at this stage would make no sense since the infrastructure, except the road ( Emirates Road) is not in place. I have started to look at this as a very long term investment and it'll eventually bear its fruit. At the current situation a new payment plan is the best option. Also I was told from Star Giga's side, that they have to install an escrow account, which surprised me, as in the case of Dubai this was only applicable to buildings, which have not yet been launched at the time of the escrow account law. Correct me if I'm wrong.
Rental Guarantee!
As I look at it, this a rental guarantee and not actual rent which has been promised. And this guarantee becomes applicable from a particular date as mentioned in the contract. It could be that the guarantee is to protect you from rental loss if there is a delay. If the guarantee would be payable only after completion/possession, why would anyone invoke it, as one could rent out the unit himself, unless the market rentals fall below what has been guaranteed.
I still can't understand the need for a new payment plan IF there is rental guarantee from a particular date. Also the real reason for stopping construction in the GCD 1 and 2 towers has still not come out. All that the developer keeps saying that construction will resume SOON. Last we heard was that it will all resume from January, but now January is also coming to an end. It all halted in July 2008.
Rental Guarantee
You are correct I 2 Ajman. It is a rental guarantee promised to investors so that if, for what ever reason, the unit couldn't be rented we would be covered. It clearly states in the contract when the guarantee date starts and it is in no way linked to completion, hand over, or anything else. Next they will try to say that the guarantee is only valid if they are actually able to rent the unit (completed, but no electricity). Of course the vendor will try to tell people that the guarantee is only valid after hand over, and some investors will believe them!?!?
You also make a good point about the payment plan. No way would I sign a new payment plan as they WOULD use this as an excuse to delay the rental guarantee. One should continue to make all payments as scheduled in their contract, but not the hand over payment. Again the schedule/contract clearly states that one big payment is at handover... no handover, no payment. The rest of the payments as per the schedule should be made on the stated dates.
Quote from Smitty: "One
Quote from Smitty:
"One should continue to make all payments as scheduled in their contract, but not the hand over payment. Again the schedule/contract clearly states that one big payment is at handover... no handover, no payment. The rest of the payments as per the schedule should be made on the stated dates. "
Its all quite confusing.... what about regular payments which are after the big payment? Will they go on? .....even if you don't make the big payment. and if you dont pay the BIG one or the ones that come later why would the developer be obliged to pay off the rental guarantee. In any case the amount of rental guarantee is to be deducted from the instalments. And does it also mean that suppose the handover takes place on schedule and we rent the unit ourselves, then we have to pay the full instalments and not nett of rental guarantee!! I suppose we all have to simply wait till the developer actually comes out with some meaningful and credible information or else the project resumes and tries to meet the deadlines. A delay of 6 to 12 months could be understandable, but if things simply stay at STANDSTILL for a long time and the developer also does not communicate the REASONS, it is not a comfortable state to be in.
Well lets wait!!
rental guarantee
i am not saying that i am on developer's side, i am very much on investors side and will be happy if we can claim this guarantee
the fact is, this guarantee is not available with all investors, at the time of booking they gave us choice if we want to give these apartment on rent back to company, they will use this rent against our installments and after 3 years they will give us apartment back
few investors signed this choice, few did not.
so this interpretation that, this is guarantee against delay of completion is not right. but still we got a strong point so we can refuse to pay next installment and can say take our installments from our rent.
let us see what they say.
thanks
GCD 2
In regards to the payments after the handover payment... I can see nothing in the contract that states they are "after handover payments". Meaning nothing in the contract links those payments to handover, so they need to be made regardless of possession. Just because they appear on the schedule after the stated handover doesn't mean anything unless stated otherwise. However, the big payment does clearly state "at handover", so we are not obligated to pay that until we take possession of a functional unit; functional meaning with electricity and water.
I keep re-reading the rental guarantee clause in the contract and it never states that the guarantee starts after possession, or even suggests it. I don't know how Giga will get out of it unless they can convince people to sign an amendment to the contract agreeing to delay payments and some how sip something something as "small print".
On a side note: I am not a lawyer, so nothing I say should be taken as legal advice, but I do understand a bit about contracts and everything I stated above is how I interpret what is in mine...
Out of curiosity, why would anyone choose not to be a part of the rental guarantee? Did they charge a premium for that?
answer
i am also not a lawyer, just expressing my views for a discussion. let us see what happens.
reg. your curiocity, several investors did not sign rental agreement ( i bought 2 but signed only 1 ) the main reason was, it will be a compulsary for us to give apartment to them for 3 years (on rent offcourse). and that time the investors who were buying for themselves, were not agree to delay the handover 3 years more no matter whatever rent is offered they needed for their own living ( ah!) also some were thinking that the rent they are offering is lower than expactations...hahahaha..... ..that time we never thought of this type of delay...
GCD 2
Ah, I see now. So the rental guarantee isn't optional for thoes who have it in their contract, we MUST give Goldcrest the property for rent. Their gamble was they would be able to rent it for a lot more than the 8%.
It is kind of funny in hind sight as I always thought the rental guarantee was optional and that if the market was higher I could waive it and rent it out myself. At that time, if I had know that it wasn't an option I never would have taken it thinking the flat would rent for more than the 8% they guaranteed.... I guess sometimes ignorance can be a blessing :)
Exactly!
Exactly, why would anyone forego a guarantee which is offered. Because in any case a guarantee is invoked at the option of the person who gets the guarantee....and if by chance the market conditions are favourable at the time of possession (i.e., market rents being higher than the guaranteed rental) one may just not invoke the guarantee and let it lapse.
If it is not optional!
If it is not optional then it is not a guarantee.....if it is the way you put it, it is a special kind of a contract.....its like buyers selling a "call option" to the developer. Or maybe its a future contract which may or maynot benefit the buyers depending upon market conditions at the time of handover/completion.
GCD 2
I guess time will tell....
al masah
JUST KEEP ON FLOGGING A DEAD HORSE!!!!!!!
Al Masah
Al Masah is another mafia.Beware investors.