So after extensive research I found some information
If you look for the Damac Rent Pool scheme you ll find all the details. Honestly I think its bul**** and the money they ask for furniture is very high, but I can guess that includes the fee to join the rent pool.
We are not going for this option. Also please make sure you check you contract cause it says that includes the refrigerator and some other stuff in the bathrooms that according tò the scheme you by again....... I m pasting below some links to have a look. After you see them let me know what you think.
Download teh brochure from damacs website. In there they have all the details of teh furniture you buy with this ridiculous amo
The forum will not allow me to post links for some reason, so I am pasting the texts fro the websites
Individual investors are being offered an opportunity to gain exposure to Dubai’s booming hotel industry via a ‘rental pool’ programme for luxury serviced apartments, DAMAC Suites & Spa, a subsidiary of regional developer DAMAC Properties, has revealed.
The ‘rental pool’ arrangement is to be applied to apartments within DAMAC Properties first luxury serviced apartment development Burjside Boulevard, situated within the exclusive Burj District.
The programme operates whereby a single investor buys a unit which they transfer into a pool of apartments. The apartment ‘pool’ is then serviced and reservations managed in much the same way as a five-star hotel by DAMAC Suites & Spa.
Senior vice president, DAMAC Properties, Niall Mc Loughlin said: “Dubai’s hotel industry is surging, occupancy rates were the highest in the world in January 2012. There are a lot of individual investors who would like to invest in the hospitality sector, but there are very few avenues for small investors to gain exposure to this segment of the market.”
The ‘rental pool’ will be administered by DAMAC Properties’ hospitality management company, DAMAC Suites & Spa. The company will deliver a bespoke services package as well as manage reservations. All revenue will be pooled, and once costs have been extracted, profit will be distributed accordingly among all participating owners.
McLoughlin added: “This is a way for individuals to invest in Dubai's lucrative hospitality sector. Our ‘rental pool’ offering is a solid investment vehicle, which provides for maximum returns while minimising risk.”
Hotel occupancy soared to 86 per cent in January according to the Dubai Department of Tourism and Commerce Marketing, the highest in the world. More importantly, from an investment perspective, average revenue per room for January was the second highest globally, after Paris.
The average room rate in Dubai was just under $272 in January.
Apartment owners are also to have the privilege of reserving an apartment within the complex for any length of time for their own purposes. This will be administered by calculating a slightly lower occupancy rate for that particular owner in the distribution of pooled revenue.
McLoughlin commented: “Burjside Boulevard will be managed as per five-star hotel standards. We expect the occupancy rate for these serviced apartments will be extremely high given the quality of the development and its premium location opposite the Dubai Mall and within close proximity to the Burj Khalifa area.
“We are seeing strong demand from investors who know they are likely to be in Dubai for significant periods of time. This investment model is very appealing to people who want a luxury apartment available when they need it, but would like to make money from it when they are not in Dubai.”
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Live & Earn:
A Rental Pool Scheme managed by Damac Suites & SPA. Wherein the Buyer wishes
to engage the services of seller to offer, manage, and operate the Buyer’s Unit as a
transient rental hotel unit within the Resort pursuant to the terms and conditions set
forth by an agreement, known as the “Rental Pool”. The Buyer does not intend to
occupy the Unit at all times of the year, and the Buyer desires to engage Damac for
the purpose of renting the Unit, in whole or in part.
3 months advance notification by the buyer
For a minimum period of 6 months
Net amount shall be paid to the buyer after deduction of Management fee
At an ADR(Average Daily Rate) of 1500 for a one bedroom and occupancy of
65% pa (238 days) you can expect a minimum return of approx 17% (after
deducting service fees),if occupancy is higher and rate increases it can go up to
30% as well. If you add CAGR of 5% pa you are still looking at a 22% return.
Basically you can recover the cost of your investment in 4 - 5 years. On a 2 BR
you can expect a minimum of approximately Aed 450,000.00 PA.
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From a presentation:
Buy an apartment and use it during the year as part of the “Rental Pool Plan”
‐ Damac Suites & Spa will lease it for you, when you are not using it!
‐ Up to 14 days usage per year during the peak days(main festivities and key activities)
‐ Unlimited usage during the rest of the year
Revenue is calculated:
RENTAL REVENUE during non usage ‐ RENTAL POOL OPERATING EXPENSES
CONTRACT TERM = 12 MONTHS
EXIT NOTICE = 4 MONTHS
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Hope all these are helpful. We wait to hear from them back as well.
All of the above was found after my research! These ppl didnt provide any details....
Let me know your thoughts
