Ras Al-Khaimah - Pacific

[richie83]

Only a few days old annoucement


As I said you will make money on select ( I believe I will),only your return on your investment will not be as good. I feel I made a mistake here of sorts, although I will still make money there is the potential to make more. Not a big mistake, but in hindsight there was better offers.

How? You are paying 30% (long term plan) upfront with further payments which for the low end studio will be minimal £4000 a year untill the property is built, which is due for mid 2011.

Thats 30% investment + £12,000k before you see a return should you buy.

Would it not make more sense to pay 30% for a property, not pay anything else. The property is also finished a year and half / two earlier from which if you rent out that is approx £7-12k per year or whatever the rental income may be. You obviouslly make a better return on your money, simple maths.

As far as the resales go, you could call them yourself I think you will get a polite we have cancelled resales at the moment. This by the way was pushed to me when I inititally bought, as was the fact the island was built.

Point of interest, was anyone else told the island had already been built?

yes you may have to only pay 30% until completion for LHB, but then you have to get finance for the rest. at least with SP this is already in place, im not too sure if there is already a bank-approved option for LHB?? but in any case you will have to find tenants to keep up with your payments....good luck renting a property with no electricity or water! so what if LHB might complete this year or early next, if there are no utilities in place! if you cant rent it then you have £0 returns, except of course capital appreciation, which in my opinion will be greater at Pacific with the private beach residents, and expecially now that Pacific has been awarded 'Best Development'. People will see this award and want to buy in to pacific with confidence from a good and reliable developer. And as for resales, i know that there have been resales with good returns already, so nothing to worry about there.

 

[OMAR.WAZIR]

Ritchie

"yes you may have to only pay 30% until completion for LHB, but then you have to get finance for the rest. at least with SP this is already in place, im not too sure if there is already a bank-approved option for LHB??"

The developer Khoie takes the responsibility to arrange the finance on a mortgage on the final payment based around the EIBOR rate at the time of completion.

"but in any case you will have to find tenants to keep up with your payments....good luck renting a property with no electricity or water! so what if LHB might complete this year or early next, if there are no utilities in place!"

Does this mean that RAK goverment have allowed a situation where by there is no utilities, considering they are the master developer and developer for Bab Al Bahr which is supposed to be built around roughly the same time as La Hoya Bay? If so that would be a highly embarrasing situation for the whole goverment?

"and expecially now that Pacific has been awarded 'Best Development'. People will see this award and want to buy in to pacific with confidence from a good and reliable developer."

Defineatly is a good development, agree with you there and there marketing is spot on.

And as for resales, i know that there have been resales with good returns already, so nothing to worry about there.

Is this resales through Select or through a private agent? If it Select can you please advise which employee at Select has been dealing with your resales at select ? P.M me if you dont want to put their name out in public please. I hope this is the case. I spoke with select now appox 3 weeks ago. As you know will know in the "My Select" section within the website you have your sales contact and a member services contact to help you with any queries. My direct member services contact advised me Select ( and I am sure this probably will be the case with most Al Marjan Island developers) have no experience in the resale market in Ras Al Khaimah and so could not give me any indication of how long it would take to sell the property. I was then later told that they were not going to do resales at all at the current time (however "may" do shortly) they were focussing on selling their own properties, which my member services agent told me was at a rate of around 8 per day when we spoke.

Any input on the above would be appreciated,

Thanks

 

[berlinetta]

Hello,


I believe SELECT are great! I have taken a unit there myself and two of my friends too they were both extremely happy with the way things were handled. This is rare in the UAE, you often deal with very very poor customer service, and yes I do generalise!

I find their payment plan great, they totally convinced me and many others.

I can only recommend them...not saying LA HOYA is bad!!!

 

[berlinetta]

Hello


Yes Select Property are outstanding in their customer service, now as to the ROI one will have to wait and see.

Myself and 2 friend bought there, both were really happy with the way things were handled. Usually you find very poor customer service in the UAE, very widespread!!!

Not saying La Hoya is bad though...might be a good deal too. I personally belive they will increase in value over time.

Take care

 

[richie83]

"yes you may have to only pay 30% until completion for LHB, but then you have to get finance for the rest. at least with SP this is already in place, im not too sure if there is already a bank-approved option for LHB??"

The developer Khoie takes the responsibility to arrange the finance on a mortgage on the final payment based around the EIBOR rate at the time of completion.

"but in any case you will have to find tenants to keep up with your payments....good luck renting a property with no electricity or water! so what if LHB might complete this year or early next, if there are no utilities in place!"

Does this mean that RAK goverment have allowed a situation where by there is no utilities, considering they are the master developer and developer for Bab Al Bahr which is supposed to be built around roughly the same time as La Hoya Bay? If so that would be a highly embarrasing situation for the whole goverment?

"and expecially now that Pacific has been awarded 'Best Development'. People will see this award and want to buy in to pacific with confidence from a good and reliable developer."

Defineatly is a good development, agree with you there and there marketing is spot on.

And as for resales, i know that there have been resales with good returns already, so nothing to worry about there.

Is this resales through Select or through a private agent? If it Select can you please advise which employee at Select has been dealing with your resales at select ? P.M me if you dont want to put their name out in public please. I hope this is the case. I spoke with select now appox 3 weeks ago. As you know will know in the "My Select" section within the website you have your sales contact and a member services contact to help you with any queries. My direct member services contact advised me Select ( and I am sure this probably will be the case with most Al Marjan Island developers) have no experience in the resale market in Ras Al Khaimah and so could not give me any indication of how long it would take to sell the property. I was then later told that they were not going to do resales at all at the current time (however "may" do shortly) they were focussing on selling their own properties, which my member services agent told me was at a rate of around 8 per day when we spoke.

Any input on the above would be appreciated,

Thanks

it has been well publicised that there are problems in the northern emirates about supply of utilities, you can easily find the info on this and other forums or just google it. i'm not saying that the government are not improving the infrastructure, they are, but it won't appear overnight. yes it would be very embarrasing, but not a surprise. if you can find out from rakeen that everything will be in place for when LHB is ready, then fine, but i dont know if anything is confirmed regarding utilities.

as for resales, i was simply told that there have been resales with good returns. no-one is claiming that the RAK resale market is well-established, i think that is why we have invested...to get in at the beginning!

anyway, another plus point for pacific which has now come into play is the escrow acc....since RAK government has now made escrow compulsory..the same cannot be said for LHB.

 

[OMAR.WAZIR]

Al Marjan Island - Utilities

it has been well publicised that there are problems in the northern emirates about supply of utilities, you can easily find the info on this and other forums or just google it. i'm not saying that the government are not improving the infrastructure, they are, but it won't appear overnight. yes it would be very embarrasing, but not a surprise. if you can find out from rakeen that everything will be in place for when LHB is ready, then fine, but i dont know if anything is confirmed regarding utilities.

Thanks for the info above Richie:

Following link may be of interest to all investors in the island and RAK.


Gulfnews: RAK to develop 2,740 MW power generation capacity for new residential communities

Published only yesterday:


Ras Al Khaimah: The Ras Al Khaimah Government is offering guaranteed power, water and gas supplies to property buyers, in a bid to boost sales of new residential communities, a top official said.

“We can guarantee that there won't be any shortage of power, water and gas supplies to new projects and communities,” Dr Khater Massaad, chief executive of the Ras Al Khaimah Investment Authority (Rakia),told the media here on Sunday.

 

[richie83]

received a call from SP a couple of days ago, informing me that construction will start within days. the island has been ready for some time, but it was necessary to wait to make sure there was no movement before moving onto site. the construction contract has been awarded and soil testing and piling work will begin imminently. good news!

 

[rudeboy]

hmmm does anyone know what the prices are for studios in Select? I am interested in buying a studio facing the beach or the sea. Its the weekend will get in touch with SP on Saturday or Sunday but anyone who has invested in a studio is willing to sell theirs please let me know. Am not a agent but an investor. Plus I need some more info about Marjan Island any new launches etc where can I find this info?

 

[alexie62]

RAK Resale market

I live in RAK for the past 3yrs, in the UAE 10yrs where RAK already has a strong resale market in many key projects. Premiums are excellant here and in Umm Al Quain which is on the same shoreline. For sure premiums will be good and you cannot compare RAK to Dubai as they offer a different way of life, very focussed on leisure although the business community is overflowing here, it still has the community spirit, something special. Most of the investors in RAK are European and Al Hamra Village is a perfect example, stunning development, almost sold out with their original project and now with projects like La Hoya Bay, ext of Al Hamra, complete Al Murjan Island, Pacific, Mina Al Arab, The Cove and many more, its going to be a killer.

how long do you think it will take to establish a strong resale market in RAK? my idea is to sell my studio before completion and make a good profit. completion is estimated more than 3yrs from now so plenty of time for good appreciation i would say.

 

[milktrayman]

I noticed sterling has weakened against the AED in the last week, I have an installment due very soon and was wondering what has caused this considerable drop in the space of a week. Only 2 days ago inflation figures were released in the UK , so wondering if that would have any bearing on this?

 

[anil]

AED is "pegged" to USD (as you probably know)

The market's view of interest rates has changed so over the last few days USD is lower against GBP ie you now get about 1.87USD to 1 GBP.

Because of the peg, that means you get less AED for GBP also.

In other words, GBP/AED will move in the same way a GBP/USD.


I have a payment coming up too. I'm not sure we will see an exchange of much over 7 AED anytime soon, so I think it is a case of getting the best possible exchange over the coming week.

You can see the exchange rate trend here...

GBP to AED Share Price Chart | GBPAED=X | | Yahoo! Finance UK

I hope that helps.

 

[talk]

Inflation

Inflation in GB has risen to a 16year high.It is now almost certain that the Bank Of England will raise interest rates to help stall inflation from rising anymore.

 

[benho]

guys,

I am looking at the Pacific development, what's the AED/sqft when you buy?

The latest is around 1400 per sqft, and is it too late to jumb on the boat now?

 

[rudeboy]

heheh cool am making 30,000dhs in a week which is pretty good for RAK.

benho go for it before it is too late. prices in Dubai "desert" are 1500 dhs per sq ft. Dubai "beach" projects are fetching over 1500dhs.

pay select property a visit i know its too much but if you go for their lenghty 15 year payment plan with interest it is still safe. i have gone for the 15 year payment plan just to be on the safe side and after June 2009 i will be paying 12,000dhs after every 3 months.

last i heard they have sold out the studios but i might be wrong.

 

[anil]

Some interesting info in Select and their activities..

Select to build new £100m block in Dubai - Business - News - Manchester Evening News

 

[Mujteba]

I live in RAK for the past 3yrs, in the UAE 10yrs where RAK already has a strong resale market in many key projects. Premiums are excellant here and in Umm Al Quain which is on the same shoreline. For sure premiums will be good and you cannot compare RAK to Dubai as they offer a different way of life, very focussed on leisure although the business community is overflowing here, it still has the community spirit, something special. Most of the investors in RAK are European and Al Hamra Village is a perfect example, stunning development, almost sold out with their original project and now with projects like La Hoya Bay, ext of Al Hamra, complete Al Murjan Island, Pacific, Mina Al Arab, The Cove and many more, its going to be a killer. By the way if you need any more info please feel free, thanks Theda

Hi alexi62 who do u use for re-sales in RAK?Are there any agents you can recommend?

regds

 

[theammer]

We have bought a 2 bed in Pacific

After doing a lot of homework and looking through this thread we have taken the plunge and purchased a 2 bed on the 6th Floor of Bora-Bora, so rather than being a bloodsucking taker from this forum I now hope to be a giver I decided paying 1650 psf for a apartment in Links View DSC was to expensive - I hope that I have made the right decision

We have received our contract but I was already fully aware of the points made throughout this thread and therefore there is nothing that causes me any great angst in the conditions stated. Like others I would have liked to see some sort of penalty clause for lost rental after 18 months late completion but then again as other have stated at least there is some sort of redress I suppose.

Did any UK purchaser employ rhe services of a law firm to read the contract prior to signature and if so what did they charge and did they raise a large list of comments. My prior experience of employing the services of a law firm to review a contract for purchase in International City was that I paid £150 for them to run a quick eye over the contract and make a few noises but claim as it was not a contract under direct UK law it looked ok in principal although they were not prepared to raise any objections in writing

The only thing I cannot decide on is whether to go for the SPP or the LPP. I am tempted to go SPP. I will be paying all the instalments out of my UK mortgage facilty at a rate of 6.5% pa whereas it looks like the LPP interst rate is about 8.5% pa. I would appreciate any helpful advise on this point - what did I say earlier about giving

May I wish all other Pacicific Investors from this forum a very profitable adventure in RAK.

Regards,

Bruce

 

[talk]

After doing a lot of homework and looking through this thread we have taken the plunge and purchased a 2 bed on the 6th Floor of Bora-Bora, so rather than being a bloodsucking taker from this forum I now hope to be a giver I decided paying 1650 psf for a apartment in Links View DSC was to expensive - I hope that I have made the right decision

We have received our contract but I was already fully aware of the points made throughout this thread and therefore there is nothing that causes me any great angst in the conditions stated. Like others I would have liked to see some sort of penalty clause for lost rental after 18 months late completion but then again as other have stated at least there is some sort of redress I suppose.

Did any UK purchaser employ rhe services of a law firm to read the contract prior to signature and if so what did they charge and did they raise a large list of comments. My prior experience of employing the services of a law firm to review a contract for purchase in International City was that I paid £150 for them to run a quick eye over the contract and make a few noises but claim as it was not a contract under direct UK law it looked ok in principal although they were not prepared to raise any objections in writing

The only thing I cannot decide on is whether to go for the SPP or the LPP. I am tempted to go SPP. I will be paying all the instalments out of my UK mortgage facilty at a rate of 6.5% pa whereas it looks like the LPP interst rate is about 8.5% pa. I would appreciate any helpful advise on this point - what did I say earlier about giving

May I wish all other Pacicific Investors from this forum a very profitable adventure in RAK.

Regards,

Bruce

I have also purchased property from the same developer but on a different development.Contracts don't often come in your favour although I believe Select Property keep purchasers more up to date that other developers.

Reguarding payment plans I financed my purchases myself from home and did'nt takeout any payment plans,I now reget doing this.

I found it much harder to get a buyer when trying to sell.The buyer must provide all his own finance and can't enter into a plan as the developer has already been paid and won't offer any finance.To get a mortgage in Dubai the development must be complete.

Investors don't like to put out to much money up front and also could have a lot of money already spread out between different developments.For this reason I would recommend LPP as a buyer can take over from where you leave off and then only paid you the difference.

Talk..................UK..

 

[Mahon]

Guys, does anyone have any updates on when the ACTUAL construction will start?

 

[milktrayman]

Guys, does anyone have any updates on when the ACTUAL construction will start?

Hope this helps , ha dthis today :

Further to the letter sent out to you on 17th January 2009, we also wanted to confirm details of Pacific’s progress via email.

The initial progress of the works in the Pacific project has been impeded by a number of constraints and our subsequent efforts to improve the functionality of the overall design concept. We are pleased to be able confirm the details below and to report that the building contractor is now on site with a clear programme for proceeding with construction, which we hope will be welcome news for all property purchasers who have been monitoring progress with interest.

Since launching the development in spring/summer 2008, the appointments of the project consultants progressed in accordance with our original schedule. Specifically, the initial works were designed taking into consideration a 5 meter setback from the plot limit facing the sea in accordance with the Design Control Regulations (DCR) issued by the Master Developer, Rakeen. The concept design was approved by Rakeen on that basis, however the compliant shoring design submitted to them for final approval was recently rejected. We were informed that the 5 meter setback was to be amended to 17 meters from the plot limit due to the existence of a rock fill protection in the vicinity of the crest wall which had previously not been communicated to us by the Master Developer. This setback impacted our designs in a number of ways; piling through rock was not feasible, and the basements (and subsequently the available parking) would have been drastically reduced.

The planned works have therefore had to be redesigned with unforeseen time and cost consequences. Our design team and management team addressed the setback constraint with Rakeen as a priority. This matter has now thankfully been resolved and the redesign is complete, with the necessary concepts and approvals in place.

We have been working hard during the most recent period to calculate what impact, if any, these unforeseen but necessary changes would have to our plans, conscious of the need to communicate the outcome to all unit purchasers as soon as this information was clear. By our assessment this would have resulted in progress being delayed by a few months, however we re-appointed a building contractor on 24 December 2008 with a revised programme for completion as follows:

Excavation up to piling platform (currently approximately 25% complete) should finish in the next month;
Piling is due to commence in February 2009 and should complete in May 2009;
Substructure works (pile caps, ground beams, slabs) should commence in April 2009;
Work on the superstructure is due to start in August 2009 and finish around June 2010;
Work on internal finishes should start in January 2010 and be completed by June 2011.

Although we had previously announced that the main construction works would be completed under a contract that had been awarded to local contractor CTC, following the re-submission of the design proposal the main contract to construct Pacific has now been awarded to Dubai Civil Engineering (DCE). DCE has over 20 years experience and are a leading contracting company in the United Arab Emirates with over 7000 employees.

As a consequence of the improved design elements therefore, and with the appointment of a new contractor with a revised programme of works, the overall timescale for delivering Pacific has not been adversely affected. We will continue to keep you updated of construction progress as always.

Kind Regards