How End-Users are kicked out of the market

[sonofthedesert]

In most cases the builder won't help you out. Most agreements state that the apartment goes back to them if you are unable to make installments. They have no reason to help you. It sucks, but it is business. Your case is similar to many and are resulting in an increase of 'distress' sales throughout the country. The reality is people got caught up in the proverbial 'hoopla' and are now also suffering the added effects of decreased demand and the liquidity crisis spreading to local banks. If you plan to live in it for some time or rent it out and are able to cover the payments with the loan and mortgage , go ahead and do it. For those trying to flip, I would suggest you cut and run. i.e. cut your losses and buy again after the inevitable price declines that will be available. Nobody is buying now! I bought stuff on Reem at 1700 sq/ft and thought it was a good deal, but I have seen a lot of nervous flippers or unfortunates like yourself being forced to sell in the same developments at 15-1600 sq ft recently. If all else fails, you can always buy shares of emaar when they hit 3 dirhams!

This is still a developing market. One can never forget that. These types of markets typically experience higher highs and lower lows than others. That is the risk we take when investing in these types of markets. Hopefully things will be better in a few years.

 

[djaan]

i think things will be better in few months not years as the bottom line will
reach in three months and after that the geniun buyers will start buying.

thanks
Habib

 

[ngn97141]

Firstly talk to your developer frankly. Tell him your situation. Developers now are becoming friendlier as they understand that even if they forfeit your property they arent gonna find any buyers for the same outside. They would rather keep thier reputation and help you out. See if they are ready to offer you some flexibility on yur next payment. Emaar has already started offering flex payments and are even allowing people to downgrade thier property if they wish to. Keep the faith. Dubai is a phenomenal market and a city in the making. Ofcourse, you cant expect wonders overnight but with Obama as the new president the American markets will pick up by the end of 2009 and once the idiots that have overspeculated are washed out of this system, genuine buyers like yourself will benefit from the same. Regards

 

[Investoman_uae]

I did speak to my developer yesterday and the good news is, he has asked me to come up with atleast 50% of the installment which is 150,000 dirhams.... and he said he will speak to his seniors and see what else they can do.

I did explain to him that things are tough for all of us and we must work togather.... there is risk for all of us that we are tryin to decrease. So he understood... but when I told him.... look nobody here is walkin around with 2M in cash... so everyone is tryin to raise finance and the bank you chose for this project is making it very difficult. So how will buyers come and buy apartments from you when they are 2M+?

He said, oh there are people with 2M in cash... I said no there arent lol... he said oh yes there are.... I thought its wise to just agree with him right now and tell him yeah ok... I am not one of those people though unfortunately lool.

Anyways, I bought myself some time and I will try and find a bag of cash lying on the ground somewhere on Shiekh Zayed Road with 150,000 dirhams in it.

Inv.