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freehold is not freehold

Discussion in 'UAE Property' started by mirpuri, Mar 31, 2008.

  1. mirpuri

    mirpuri New Member

    Att to Roshan
    sorry freind i am adress you for this becuse i believe you have good knowlage about Dubai
    i am about to sign contrect on devalopment called PACICIF
    on AlMarjan Island RAK
    but i found out this project is not freehold untill all payments are made and all formalities are fulfilled then the devaloper will aply for freehold
    and it is still not guaranteed that we will get this freehold becuse the law is not passed yet for freehold.
    the present contract is 99 yr lease

    i have bought one property from this devaloper already in Dubai Marina called BAY CENTRAL

    can any one tell me is this the case with all the properties in Dubai and RAK ???
    thanks
    Mirpuri
     
  2. Rammah

    Rammah Member

    If what you're saying is accurate, then that's a clear mis-description by the developer!

    It's not the case with all project!

    Rammah
     
  3. mazi

    mazi New Member

    I am nowhere as knowledgeable as Roshan obviously - but applying commonsense, it is a risk you are taking buying a property which, as things stand today, is leasehold and only hoping it can become freehold in the future which would depend on various things as you said. If i were you, i would only proceed if i believed the property/project overal was worth it, even assuming it was always going to be a leasehold.

    Dont forget though, that the law would not only apply to your property and if there were any problems conferring freehold status to your property, it would probably mean that the whole project won't be freehold (Roshan, plz correct me if i am wrong)
     
  4. Roshan

    Roshan New Member

    Mirpuri,

    I contacted RAK properties who have similar properties. You do not need to buy from them but it will just put a point through.

    I presume you do not have bank finance on your leasehold property.

    Will post the details by today or first thing tomorrow.

    Lets hope we can help you.

    Regards

    Roshan
     
  5. Roshan

    Roshan New Member

    Mirpuri,

    When Emirates Hills was released to investors way back when freehold just started in Dubai, it was done on a 99 year lease. To encourage investors to start building, they changed it to freehold and even gave a 10 year free maintenance if they constructed by a certain date.

    When Freehold started in Dubai and the laws where not in place, investors didn't know what they were buying.

    When the developer has said that it will be converted to freehold after all payments, you have to watch out for it as there is no assurity. This kind of promises could back fire. Where will you go if they do not convert it. They have to give you some assurity.

    You can expect this to happen on developments, but I guess you should not risk it if it's only free hold that you are looking for. Can you put a " purchase subject to property being freehold " clause in the contract - OR - ask the developer to give you a letter guaranteeing you money back if not freehold.

    Some investors do not mind a 99 year lease as their arguement is that it exceeds the normal life span of a normal human being which is true. But what happens is that when you try to sell a lease hold it could put off investors as there is a lot of freehold in the market, just a possibility and I could be wrong here.

    Every investor would like to call the investment which has been bought with their hard earned money to be called their own and not something which they would like to give back or renew after 99 years.

    Al Marjan is built on the likes of the Palms and would do well if RAK could get in the people like Dubai. Water front properties are the number 1 destination for investors and tend to do very well in the long run.

    I managed to get some info for Mina Al Arab by RAK properties. This is a confirmed freehold project. Developed by RAK properties who are the strongest in RAK and a semi government run organization. Bank finance available. RAK Properties: The Premier Real Estate Company of Ras Al Khaimah, UAE

    Mina Al Arab also is an island and the developer is strong. Since you have already done a invextment with the previous group, spread out your investment. What if he does not develop good properties. You are left with 2 projects which you hoped would be good and turned out to be bad. Payment structure is 50% on completion which works well if you want to flip.

    Reproducing the info what I got from the sales agent.

    Introduction :Mina Al Arab will be a world class residential environment situated in a unique natural setting incorporating unspolilt beaches, a vibrant inner harbour, tranquil lagoons and pristine ecological wetland reserve. A diverse and vital environment will be created through human scaled development, secure and comfortable urban settings and a water based lifestyle, offering visitors and residents a distinctive range of residential and recreational choices unavailable elsewhere in the region.

    Location As part of Ras Al Khaimah, the northern most Emirate of the U.A.E, ruled since 1948 by HH Sheik Saqer bin Mohammed al Qassimi, Mina Al Arabs location provides a unique opportunity for tourism, taking advantage of a direct frontage with the Arabian Sea and superb surrounding landscape including a ramsar quality wetland. The project site is ideally located 100km North (60 minutes) FROM BOTH Dubai airport and the city of Dubai and 10km West of the capital of the Emirate of Ras al Khaimah. This location will ensure Mina al Arabs future as a major resort destination for international travelers. With superb views across the Arabian Sea and distant views to the mountains (30 minutes) and its ramsar quality wetland, Mina Al Arab will become a true eco-tourism destination.

    Developer Profile : This project is developed by RAK Properties, which has a sound capital of AED 2 billion. The company's founder’s who hold 45 per cent of the company's sharecapital, include the Government of Ras Al Khaimah, while the remaining 55 per cent was offered in a public shares issue. The company was formed with the support of the RAK government to oversee the development of property, tourism and leisure facilities in Ras Al Khaimah. The company will become one of the key drivers of RAK’s economic development and is a key component in the government’s growth plans.

    His Highness Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, recently issued a Freehold Decree allowing foreigners and expatriates to enjoy complete ownership of properties within RAK Properties' projects in Ras Al Khaimah Emirate.

    Visa’s : Residence Visa’s may be applied for subject to UAE law and RAK Free Zone rules and regulations.

    Finance : Financing will be made available with various financial institutions.

    Payment Schedule

    · First installment - 5% of purchase price on reservation (10%for studi &1 bedroom)

    · Second installment - 10% of purchase price, 6 months after reservation

    · Third Installment - 15% of purchase price, 6 months after second installment

    · Fourth Installment - 15% of purchase price, 6 months after third installment

    · Fifth Installment – 55% of purchase price upon completion.(50% studio & 1 bedroom)

    Approximate pricing got :

    Mina Al Arab Building 20 Precint 2 Type 3 1008 Type G Lagoon and Sea view 484 532,620 STUDIO
    Mina Al Arab Building 20 Precint 2 Type 3 1004 Type H Lagoon and Sea view 549 603,636 STUDIO
     
  6. mirpuri

    mirpuri New Member

    Sorry gays
    it was my misunderstand on Devalopment called PACIFIC on al marjan Island
    when going through contract carefully i found it is 100% freehold

    by the way i have bought a unit on this devalopment and recomend to any one who is looking for Good location on this island
    next to shoping mall privat beach.many other features

    i must apologise to select properties as well :D

    Mirpuri
     
  7. maxclif

    maxclif New Member

    i must apologise to select properties as well :D

    Mirpuri

    :D:D
     
  8. East end barrow boy

    East end barrow boy New Member

    contracts written is sand can blow away

    His Highness Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, recently issued a Freehold Decree allowing foreigners and expatriates to enjoy complete ownership of properties within RAK Properties' projects in Ras Al Khaimah Emirate.

    It only takes a royal decree and things can change.

    There is a strong possability that there could be a change of Ruler in RAK, and when Sheikh Saqr dies the sons are battling for control.

    I own a freehold property in RAK, and do hope that the property remains my property, but in the back of my mind is the concern that laws and rules change on a daily basis, and sometimes without thought of the practical consequences.

    east ender
    (the series ends soon)
     
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