Al Furjan

[zombie]

Arno, I would suggest wait & look elsewhere in the world, do not, I repeat do not purchase anything offplan, by any developer in Dubai. There is more pain to come.

 

[Khalil]

Arno, I would suggest wait & look elsewhere in the world, do not, I repeat do not purchase anything offplan, by any developer in Dubai. There is more pain to come.

Just curious as to what you are basing this grim outlook on.. Don't get me wrong I'm not optimistic either but I am keeping an open mind.. Just seems people here are reaching conclusions (positive & negative) based on hear'say.. If you have any hard facts or solid logic please do share with us..

 

[Arno Salzl]

Arno, I would suggest wait & look elsewhere in the world, do not, I repeat do not purchase anything offplan, by any developer in Dubai. There is more pain to come.

Frankly, I don't understand why the villa part of Al Furjan would not be build: location is ok,
original price -which is now the resale price - seems not too inflated,
Nakheel did not spent much for the land and marketing,
most investors have only paid 20%, means no cash flow problems for this project,
flippers should be able to resale before next payment with no or light loss.

Renting a ready townhouse to people working in JAFZA for 180,000 AED would give a yield of 7,5 % brutto, starting 2013. Is it daydreaming? your opinion please!

 

[Mujteba]

Frankly, I don't understand why the villa part of Al Furjan would not be build: location is ok,
original price -which is now the resale price - seems not too inflated,
Nakheel did not spent much for the land and marketing,
most investors have only paid 20%, means no cash flow problems for this project,
flippers should be able to resale before next payment with no or light loss.

Renting a ready townhouse to people working in JAFZA for 180,000 AED would give a yield of 7,5 % brutto, starting 2013. Is it daydreaming? your opinion please!

I think you are not far off, the Furjan were always competitively priced hence the demand they held in the re-sale market. Even with a 10% premium, they were much less psqfoot than other villas in the surrounding area.

The only issue i see, like all off plan property, is knowing when they will be actually built or if constructed at all. This is scheduled to be completed in 2010-2011 but with the current crisis who knows.

So really the Furjan are a good set of townhouses that will be in demand but only once ready or once there is solid indication they will be built and when will the construction finish. The first indicator will be phase 1, if this is done by early 2010, then the investment will definately pay off for the phase 2 investors.

Fingers crossed and lets hope for the best.

 

[Arno Salzl]

I think you are not far off, the Furjan were always competitively priced hence the demand they held in the re-sale market. Even with a 10% premium, they were much less psqfoot than other villas in the surrounding area.

The only issue i see, like all off plan property, is knowing when they will be actually built or if constructed at all. This is scheduled to be completed in 2010-2011 but with the current crisis who knows.

So really the Furjan are a good set of townhouses that will be in demand but only once ready or once there is solid indication they will be built and when will the construction finish. The first indicator will be phase 1, if this is done by early 2010, then the investment will definately pay off for the phase 2 investors.

Fingers crossed and lets hope for the best.

Agree. but IMHO, no completion before begin 2011 (we are, so to speak, early 2009). However, bankrupt of numerous subdeveloppers means contractors will have free capacities to work for Emaar, Nakheel and Dubai Properties.

 

[zombie]

Just curious as to what you are basing this grim outlook on.. Don't get me wrong I'm not optimistic either but I am keeping an open mind.. Just seems people here are reaching conclusions (positive & negative) based on hear'say.. If you have any hard facts or solid logic please do share with us..

My logic is this money deposited as downpayments & installments has an opportunity cost associated with it, now the likely hood of the project getting delayed is very high, if anticipated competion in end of 2011, the more realistic time for competion "assuming" the developer has worked out cashflow prudently is more like 2012/13, so from here on forth for a period of 4 years you are blocking your funds, we can only hope that at the end of 4 years one can recover the opportunity cost by way of increase in value of the property. But there are still a large number of defaulters still to come in the picture because their installments have either not been due or they have managed one more installment & are desperately hoping to seel the offplan property in the next few months. But there are hardly any resales taking place in the market, so how they manage is unknown. Finally the impact of all this on developers finances is also an unknown.

I believe there are other established property markets in the world that one can invest, markets which are better regulated & with fewer unknowns. There are great bargains to be had there.

But that is again purely my way of thinking, for some they might find calculations & risk factors worthwile

 

[Khalil]

Agree. but IMHO, no completion before begin 2011 (we are, so to speak, early 2009). However, bankrupt of numerous subdeveloppers means contractors will have free capacities to work for Emaar, Nakheel and Dubai Properties.

I have been banging on Nakheels door for the past 2 months trying to get them to change the payment schedule or offer some remedy.

But they are insisting that the project is well underway and on schedule. For that reason they are not entertaining any amendments.

At this stage I am starting to believe them since they have changed the payments for Badrah, and few other developments launched more recently.

Plus I have seen a lot of physical work on site and they opened up the new onsite sales center recently (after the crisis) with model Villas.

This development, although very large scaled is not so far fetched as Nakheels other projects like Waterfront for example.

 

[Ghada]

Al Furjan Villa - Phase two

Guys,

I want to create a group for Al Furjan Villa owners to address issues and provide updates. Please reply if you would like to paricipate.

Thanks

Hello Khalil, I would like to participate in the Al Furjan Villa owners as I have 2 5 bdrms villa phase 2 and I send Nakheel a letter to postpone payment but they refused and penalties are on for me. Is there anyone knows any update for this project. Thanks

 

[Khalil]

Hello Khalil, I would like to participate in the Al Furjan Villa owners as I have 2 5 bdrms villa phase 2 and I send Nakheel a letter to postpone payment but they refused and penalties are on for me. Is there anyone knows any update for this project. Thanks

Hello Ghada, Thank you for your reply.

Yes, Nakheel are still refusing to change the payment schedule for Al Furjan, because they say the construction is on schedule and there are no delays.

I have the contact of a Manager in the Al Furjan Sales center, we can meet her to disuss, however we need to be a bigger group for them to listen.

I hope more people will come forward to rally up, time is running out.

 

[Ghada]

Al Furjan Phase 2

Hello Ghada, Thank you for your reply.

Yes, Nakheel are still refusing to change the payment schedule for Al Furjan, because they say the construction is on schedule and there are no delays.

I have the contact of a Manager in the Al Furjan Sales center, we can meet her to disuss, however we need to be a bigger group for them to listen.

I hope more people will come forward to rally up, time is running out.

Hello Khalil, Please count me in my mobile is 0506567001 if you need it.

 

[Small M]

I am in too!

 

[Arno Salzl]

Hello Khalil, Please count me in my mobile is 0506567001 if you need it.

how is the payment plan for the townhouses phase 1?

 

[Property Pimp]

Guys, has anyone recieved a letter from Nakheel dated 24th Dec.
Titled: "Notice & acknowledgment of assignment"?

Apparantely Nakheel assigned an "affiliate company" (which is part of Nakheel) to collect installment payments for Al Furjan on its behalf.

Wonder whats the motive behind this move?

 

[Small M]

Yes, I have receieved the same letter, but only one of them although I have 3 units in phase 2.

Is this normal with Nakheel? I know that other developers do it as well but no experience like this with Nakheel so far.....

Any comments?

 

[Property Pimp]

Yes, I have receieved the same letter, but only one of them although I have 3 units in phase 2.

Is this normal with Nakheel? I know that other developers do it as well but no experience like this with Nakheel so far.....

Any comments?

I spoke with Nakheel regarding this, they said they have just changed the bank to which the installments are made. So, it doesn't really make a diffrence to us.

Small M, may I ask how much you paid so far? 10% or 20%? and whats your O.P?

 

[Small M]

20% and next 20% 1st of May 2009, OP depends on the style, 3.4 or 3.6

 

[Small M]

Well, anybody know anything about the construction of phase 2? Have they started phase 2 construction?

According to RERA they cannot collect more then 20% if they have not started correct?

Phase 2has paid 20% now and the next 20 is up 1st of May.

 

[Small M]

Guess 95% of the people who own Al Furjan are investors. A lot of them must have planned to sell before the two times 20% payments kick in this year.

People at Nakheel told me that they have received a lot of requests for cancellation of the phase 2 project.

I think that makes sense. Why would I pay 1.4 million this year for a 3BR townhouse, 40% of the total price, if I can fully pay for a 3BR villa in Abu Dhabi, Al Reef development at the moment with that kind of cash.

They will generate rental yield earlier, and probably also a higher rent. Hope they cancell it, cannot see anybody paying their installments.

What are your thoughts?

 

[Property Pimp]

Guess 95% of the people who own Al Furjan are investors. A lot of them must have planned to sell before the two times 20% payments kick in this year.

People at Nakheel told me that they have received a lot of requests for cancellation of the phase 2 project.

I think that makes sense. Why would I pay 1.4 million this year for a 3BR townhouse, 40% of the total price, if I can fully pay for a 3BR villa in Abu Dhabi, Al Reef development at the moment with that kind of cash.

They will generate rental yield earlier, and probably also a higher rent. Hope they cancell it, cannot see anybody paying their installments.

What are your thoughts?

Most phase2 owners I spoke to paid only 10%, I know myslef and you paid 20%.

I am very interested to know how Nakheel are dealing with those owners now, because they are are 3 months overdue (since Dec. 08),I know they incurred penalties, but I hear they are due for termination after 3 months. Can they contest the termination in court? does Law 13, article 11 apply?

I don't think they will cancel it, because the profit margin (for them) is high for this project, especially phase2 which is 40% more expensive than phase1.

I went to the "special" "V.I.P" open day, seems Nakheel are trying really hard to win the hearts of Furjan investors to keep them paying.

I actually saw the phase1 villas structures off the ground. Which is amazing progress, since I went one month ago and it wasn't there.

 

[Property Pimp]

Hello Friends,

I have created a group for Al Furjan owners - details below.

Homepage: AL FURJAN OWNERS | Google Groups
Group email: [email protected]

Please log on or e-mail to join the group.

The purpose of this group is for Al Furjan owners to get together an discuss issues, progress, solutions etc.

Hope to see you there.

Thanks,