Personal advice required

[pisandre]

Hi all,

I would like to get some advice from you guys to help me to get out from my situation.

I paid so far 40% of an off-plan apartment in Dubai Sports City (800k). I am not able to pay the next installments of 10%. There is no way to get a mortage from a bank (no bank is financing my project.). I would like to know what is the best option:
- cancel the contract and get the few fils back from the developers
- apply for a personal loan that should cover 30% of the price of the property (250k). If so, do you know any bank still giving such loans?
- sell with a huge loss. Dunno if someone is interested by an off-plan 1-bedroom at 500k without finance :-/
- visit RERA to raise the problem that there is no finance available for the project and try to get my installments delayed until loans/mortages are back

Guys, your advice is more than welcome.

Thanks.

 

[Sportsman]

Try and reschedule the payments. Is the building being constructed? If not, you shouldn't need to make further payments until they are well under way. I would try and hang on if you can....

Good luck

 

[desert dream]

No need to make more payments..
most developers are linking payments wth construction..so u should have a relief till end of next year at least..
dont book the loss..unless u have a buyer at 500k..which sorry will not happen

 

[raakeshchawla]

Go to the developer, may be they will negotiate if the construction is not as expected. Or get the credit card loan...does not require any security.
Best thing....just forget it because after its finished you would not get anything out of it.
I am in the same shoes but double the amount. Oh God!

 

[NAZ_2_NAZ]

i have tenants who have just signed a renewal contract on an apartment in JLT, the rent had been reduced from the previous year and agreed, and they signed, with monthly cheques etc etc They had not given the post dated cheques and are now trying to get out of the tenancy.....!!! obviously because they may have found something cheaper......they are saying that them signing the contract was just an offer of tenancy!!!!

 

[pisandre]

Go to the developer, may be they will negotiate if the construction is not as expected. Or get the credit card loan...does not require any security.
Best thing....just forget it because after its finished you would not get anything out of it.
I am in the same shoes but double the amount. Oh God!

Why are you so pessimistic? Why do you think there is nothing to get? My goal was to live in this apartment. I simply hoped it was going to happen.

 

[pisandre]

No need to make more payments..
most developers are linking payments wth construction..so u should have a relief till end of next year at least..
dont book the loss..unless u have a buyer at 500k..which sorry will not happen

Sportsman and desert dream, thanks for your advice. Construction is not going well in fact. Ground excavation is not complete yet :-( I really hope that the government will ask all developers (old and new contracts) to link the progress with the payment. I discussed already with the developer (actually I am almost already 2 months late for my installment). I find unacceptable to be threatened while they are not able to find any bank to finance their project. Out of 400 units, I was said that only 2 managed to get finance. Ridiculous. I am stil hesitating to go to RERA to discuss this but I will probably have a look there.

 

[memo123]

We are all in the same boat, paid at least 40% in sports city , while there is nothing built, and that will buy us at least 9 months to 1 year , however given that the unit when is finished may not worth 60% of it original value plus the added cost of funds, no financing ,plus the loss of rent revenue due to delay , and the huge decrease in construction cost . Hence most of the developers in sport city who have built nothing yet , got to revise the O.P. to reflect the real market. bearing in mind too that The master developer of sports city is behind schedule too.
So many developer gave discounts ranging from 25-45% on the original price . Emmar , Madain ,Deyaar and other developer gave good discounts, in fact deyaar is scrapping some projects that are no longer economicaly viable and refunding investors 100%. These developers are showing good faith and understanding for the market condition and the credit situation.
I hope all developers in sports city will follow suit so it is a win-win for all.

Mada’in reduce prices by 30% | UAE Rush
Deyaar takes steps to reduce defaults - The National Newspaper


Good luck to all .

 

[pisandre]

Memo, you don't think it would be possible to get a grouped action at the Master developer itself (DSC) as it seems most of projects are delayed?

 

[desert dream]

pisandre - going to RERA is a waste of time. Sit down with the developer..for sure they wont ask for any more funding..best is to negotiate..stay cool..remember its YOUR cash at stake..which till a couple of months ago you happilly remitted to them.

 

[memo123]

I have tried contacting and emailed Sports city on their web-site but of no avail , I don't think anyone checks the e-mails.
Go to RERA with a written letter about your developer , they will force him to link payments to construction, all developers now are forced to do so . But first you could try to set with the developer and lets hope he has an open heart to understand your situation, break the contract , deduct few and give you the rest . Mine didn't . All the developers know that you as an investor cant break the contract and have no say. Going to a lawyer and filling a case wont help you either, unless your developer is in mega breach of the law, very costly and no guarantees. Any way I read that in the second week of April , we will have new set of laws . and there will also be mediating office for no fees with professional people , who will look into each case for a month at least and if they cant reach a solution then will refer you to the court .

 

[Stephendxb]

Hi all,

I would like to get some advice from you guys to help me to get out from my situation.

I paid so far 40% of an off-plan apartment in Dubai Sports City (800k). I am not able to pay the next installments of 10%. There is no way to get a mortage from a bank (no bank is financing my project.). I would like to know what is the best option:
- cancel the contract and get the few fils back from the developers
- apply for a personal loan that should cover 30% of the price of the property (250k). If so, do you know any bank still giving such loans?
- sell with a huge loss. Dunno if someone is interested by an off-plan 1-bedroom at 500k without finance :-/
- visit RERA to raise the problem that there is no finance available for the project and try to get my installments delayed until loans/mortages are back

Guys, your advice is more than welcome.

Thanks.

First, take solace that you are not alone.
Whilst it has not been made law developers have been asked by RERA not to take further payments if 20% has been paid and construction has not started. The problem was the definition of "started". In the coming weeks new laws will be introduced linking payments to construction. As these laws are imminent many developers are trying to push for payments now...
You best option is TIME, arrange an appointment ( not to quickly ) with your developer. Be firm with the developer regarding a relaxed payment plan. Many developers have already done this with clients on a one to one basis. Its the old saying "don't ask and you won't get". hopefully you can renegotiate your payment plan into something more favorable, thus giving you time. Meanwhile the new laws will hopefully be introduced protecting you further.

Regards Stephen

 

[latif]

Who is the Developer

Memo, you don't think it would be possible to get a grouped action at the Master developer itself (DSC) as it seems most of projects are delayed?

Hi Pissandre,

Who is the developer of your aptmt?
Really the best way is to talk to the developer and see what will he say?