Buying Unfinished Apartments Looks Shady!

[bin_3loush]

how do you guys buy apartment from developers that tell you the apartment will finish in 2-3 years.

-how do you know that the developer build your apartment on time.
-what is the legal protocol?
-what happens when the company don’t finish your apartment on time?
-is it better than buying a built apartment?


please help




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[nmb]

There is greater risk in buying a property which is not finished which should be reflected in the potential rewards. Personally if I was looking to buy a property which may take 2 to 3 years to complete I would insist on stage payments. This would incentivise the developer to get finished asap if they wanted the funds in full. Also, make sure you have a watertight legal agreement in place.

 

[diyhelp]

Reputation means everything when you are hanging so much trust on a developer. Thankfully the internet is a god send as there is nowhere for disreputable companies to hide!

 

[Longterminvestor]

Stage payments and a watertight legal agreement. If need be hold the money in escrow until stage payment conditions have been met.

 

[realdeals]

These can be legitimate investment opportunities you do need to protect yourself and staged payments are one of many options.

 

[Veronica]

Buying off plan is perfectly normal but to protect yourself you need a good lawyer who will make sure the contract protects you in case of the company defaulting. NEVER use a lawyer recommended by the developer.

 

[Longterminvestor]

Totally agree Veronica - if recommended by the developer there is a chance of favouritism. If someone is dealing on your behalf they need to be totally focused on you.

 

[lookinginvest]

The regs in Dubai have changed but in many ways they are as yet untested. In the downturn a lot of people lost a lot of money when developers folded with many simply disappearing with no word. The authorities were forced to step in and try to rebuild the reputation of the Dubai markets again. From the darling of international real estate investment to a pariah of the investment markets in a decade!

 

[realdeals]

Dubai is a perfect example of where the previous system was used and abused by some developers. They took funds for unfinished apartments and, when they went out of business, investors money went with them. New regs should help but they are untested as yet.