Miscellaneous Questions: Post them here

[BAkhtar]

It seems all Brokers, Reseellers, Agents, Middlemen, etc are taking all the investors and buyers of property in International City for a ROYAL RIDE!!
And it also seems that NAKHEEL is letting it happen and turning a BLIND EYE!

May be the persons working for NAKHEEL have a vested interest!

Its high time that all the buyers and investors CLARIFY every thing from the AUTHORITIES, if at all there are any.............

Else Dubai gets a bad name and so does the SHEIKH of DUBAI!!

I for one had bought an apartment in Marina Dubai......... and I did not face any such hassles. I must say EMAAR are far better, almost divine.

I got possession of my apartment in the MARINA having paid the CONTRACTUAL amount and the SO CALLED LAND DEPTT. REGISTRATION will take place in DUE couurse!

May ALLAH help the investors in International City from AGENTS, MIDDLEMEN, RESELLERS, etc and NAKHEEL.

NAKHEEL really dont reply to pointed questions! That is my experience. And maybe their employees have a vested interest in keeping things in CONFUSION!

And they say NAKHEEL is GOVT's.

I am shocked!!

 

[laguna33p]

Nakheel are CRAP then.

 

[FIRSTOPTION]

Dear All
I Am Verynew To This Forum. I Managew A Real Estate And Can Help You In Take Over And Renting Of Your Property. Please Contact Me If Any One Of You Need Help.
Firstoption

 

[ravikumarthota]

looking for Gym

Hi Guyz...

Can anybody tell me where is the Gym in International city

Thanks,

Regards,
Ravi Kumar thota

 

[arshia]

i want a ready for possession studio,in france/england/spain etc

kindly write me back at [email protected], and let me know if its available bcoz i want it for my personal use.

 

[eyeC]

which cluster is the best in IC ??

hi
-when i first bought my flat in IC england was the no1 cluster for unknown reasons but maybe becouse they thought alot of british ppl will be renting them.....any thoughts on why feel free to comment

-china was the cheapest and therefore least prefered making it the worst cluster....but how can we say it is the worst cluster when it was handed first sold cheaper and rented almost same if not more than the others being close to the dragon and many chinease workers need a place to rent where better to rent...making the story short for investors it is a better buy china cluster.
and i dont own anything in china

-england cluster higher price will make you wont to rent high too so you can get your 10% earning on what you invested and if you paid an extra 20,000 dhs for higher floors you need to increse your rent by 2000 dhs a year...so how ill they compete with china rents??

-spain looks good from the outisde so you have to pay an extra 50,000 dhs when buying so you need to increase you rent by 5000 dhs a year if you buy it....and i do agree spain looks good from the outisde maybe the best cluster so far

-the lake will be finished in few years time and maybe with the forbiden city next to it .... maybe greece and morocco will be on the top list .


so what im trying to say dont pay extra charges for higher floors or better looks or whatever think of how you will get it rented higher than market price
when so much competation in the market from nakheel on one side advertising units cheaper and new buiding s getting finished all the time everywhere in dubai not just ic

- i see alot of ppl saying rent is 40,000 for studio and 50,000 for 1 br is just rubish talk im here and i tried to rent no one will give you anything above 35,000 for studio and 45,000 for one bedroom.


-i think the fair price for a studio flat is 300,000 dhs and 400,000dhs for 1br
and im the owner of two flats in ic...but i will not sell at this price and will not buy too...just gained an experience from the whole process of buying and renting ....and all i can say about what i learned it is HARD to make money
the above prices are for x10 earnings and you should never pay more for a property

35,000 rent for a studio - charges makes net income 30,000 times 10 gives u 300,000 true price of the property

your comments if any

 

[SSM]

I didn't really care much about the names when I bought 3/4 years ago. I was simply looking for a good investment and a good return in the long run. The Moroccan sector overlooked the lake and I bought purely for that reason alone. Waking up to a half decent view should go someway to rent the property and it proved a right decision. I haven't seen most of the other clusters in detail but I'm happy with my choice.
I would also like to state that if you want to rent your studio out, then around 35k is a good advertising price. Try avoiding agents as most tenants like dealing with the landlord directly.
Not sure why England were marked higher than others but stick to the basics.....location, location, location.
All investors in Intl City will be rewarded in the long run.

 

[wayneis]

My Thoughts

Eye C I agree

Do not believe all the Hype that Real Estate Agents will tell you. England was all ways marketed to those who "believed they were buying into "England"

When its all said and done and the whole complex is completed most of the apartments will average out to the same except for Spain and Morocco.

If you are familiar with Dubai and the town Karama then International City is the New Karama" I.C will give you good cash flow but forget about making a killing with future short term Capital Gains. This will not happen until the project is completed in full and thats at least 2 years away if not more.

Spain has turned out to be the " Ugly Duckling" and is by far the most out standing aesthetically from the out side.Hold on to Spain it will out sell England easy.

Morocco is practically next door to the Sewage works, if you are able to off load it get rid of it while you can before the word or should I say stink gets out...

International City as an investment provides good cash flow but as a future Capital Gain, its been a dismal fizzer so far if you brought at the concept stage and this will not change until Nakheel finish the project completely. There is no sign at all of the Forbidden City Complex that formed such a large part of the initial Nakheel Sales Pitch 4 years ago.

The "Hidden City" would be a more accurate term. My money is on Nakheel making "Alterations" to the master plan and down sizing or selling off this plot to be another CBD project.

Nakheel as "Master Developer" dropped the ball big time on the International City Project . Lots of Complaints regarding lack of information, Miss Information, outrageous Fees that are being charged, lack of greenery, Product Delivery and Product Quality. ( I have had them come back twice to my apartment to complete a very sloppy paint job and also fix water leakage problems and i was told that my building contractor was one of the better ones!)

Once shops are occupied and buildings have more tenants then parking will become an issue, there is just no parking space at all for those shops in the front of the buildings! And we have to pay huge outrageous service fees for the concrete jungle, there is very little greenery.

Another complaint Nakheel "flooded" the Rental market with low cost apartments, this has changed the Market price however I am still able to generate 13% net return after all bills have been paid.

As a Landlord you are also locked into what ever the Dubai Rental Committee comes up with, this restricts you to raising the rent for a period of 2 years and when that 2 years is up by only 7%. I suspect that that in the future this ruling will change again. From a tenants view point I.C. is the most affordable project in the City.

It is beyond me how Nakheel were ever awarded the huge water front project given they could not deliver on an affordable low cost project such as International City. As an Investor I would never purchase from Nakheel again.

It also depends as an investor what currency you brought your apartment with. You can have differing positions depending if you purchased on a Euro/Sterling or US $ Balance sheet. Given the drop in the US Dollar / UAE Durham against most other currencies then purchasing apartments in the IC District takes on a different view today than when it did 12 to 18 months ago.

I am happy with the cash flow, disappointed with Nakheel but will hold for the moment Given that there has not yet been a project in Dubai that on completion has not increased a substantial amount, there continue to be project Delays Dubai wide and people are still flocking to Dubai, every one needs a place to stay.

The saying "Build it and they will Come" certainly applies to Dubai

 

[eyeC]

hi

hi
i been wanting to say this for along time....this site is great and i picked and learned alot from it and mostly from you wayneis it is also sad to see so many ppl posting wrong info just to advertise for themselves but i guess this is the internet.
can we vote for the best cluster in ic and why

 

[FIRSTOPTION]

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[aveshbachav]

Gulfnews: Owners trapped in long leases

can someone expalin the above? why can't an owner evict a tenant if he wants to occupy the place himself!!!

 

[zombie]

Good point, unfortunately no one has the answers, as an individual who has paid rent for the last 5 years in Dubai, & as an investor who is receiving rent for less than 1 year, this sounds like the frying pan or the fire.

Hopefully one can hope that this rent cap nonsense will be done with for the next year, & let market forces determine the rent in the country, if demand exists, then let it be so.

I think for many people this dilemna will exist & I am sure there are laws in every country protecting the rights of tenants & landlords. It just depends on the balance those laws are trying to achieve.

 

[nadia_bt]

Renting

Hi all,

I've read that once you let your apartment out you can only raise your rent by 7% over two years. But.... what if I only rent it out at 6months at a time, can I then raise my rent by whatever amount I wish with the next tenant after 6 months?

 

[aveshbachav]

Hi all,

I've read that once you let your apartment out you can only raise your rent by 7% over two years. But.... what if I only rent it out at 6months at a time, can I then raise my rent by whatever amount I wish with the next tenant after 6 months?

The question I am asking is not about rental increases, thats understandable as thats the law but what if I after 1 yr wanna use the place my self? Still the tenant does not evict the place on the law pretext!!! being a homeless landlord is not funny at all!!! READ THE ARTICLE GUYS what it says!!!

 

[ameerj]

Want to buy a property, Do you recommand IC?

Hello Guys


I am planning to buy a property in Dubai up to 500k, I am wondering if you guys( residents of IC) recommand IC, My job is in Knowledge village and i need to use the hous for my self,


Thanks in advanced.

 

[arshia]

any direct owner selling their apartment in CBD or supreme residency etc?

contact me if ur property can b financed...? bcoz i need to buy for my personal use.... and im not willing to contact any agents pls

 

[arshia]

my email address is [email protected]

 

[KingPin]

The best thing may be to look around the forum, read as many comments and then judge for yourself. I would also look at what else you could get around that price range in Dubai.

 

[stumbled]

Hello Guys


I am planning to buy a property in Dubai up to 500k, I am wondering if you guys( residents of IC) recommand IC, My job is in Knowledge village and i need to use the hous for my self,


Thanks in advanced.

I think the answer to your question is to ask one self why one needs to invest in a property and what they expect of it.

If it is yield then you need to take into account maintenance which is @10.5/sqft,agents fee which ranges from 5-10%, wear and tear of furniture, the fact that the gross yield for a 500k property is 10%(50k dhs) and once you minus these expenses the nett yield is about 6-7%, this is before taking into costs of travelling to and fro, agents fee ,completion costs and void periods.

If you don't live in Dubai you have to pay tax on your return earned in Dubai, so if you for example live in the UK that would be 20%. If it is borrowed money then you need to pay a mortgage which is about 7-9%, unless you have had a discounted rate. The interest ofcourse can be offset against your rent in your tax return.

In current market where IC projects are being completed they demand a premium, hence it is highly unlikely they will appreciate in capital for a while or substantially as they have already done so, more chances of it going down as the rentals don't cover the mortgage cost or due to over flooding of properties in the market and less people to rent.

With cash being the king and interest rates on the up in todays market earning from 6.4%in an offshore UK bank TO 8-9% on New Zealand dollar,i would put the cash in the bank and take a break from this property balloon.



These are just the basics , but i second kingpins suggestion that this forum has a wealth of information and I suggest you take your time and read them.

good luck!!

 

[Javaid Kamar]

Warning on New Zealand Dollar

With regard to putting money in New Zealand Dollars, it is definitely a risky proposition at the minute (unless you plan on living or working in New Zealand)

In the financial world there is something called the 'carry trade' which is the practice of borrowing money in a country/currency with low interest rates (today the Japanese Yen or Swiss Franc) and depositing it in a higher interest bearing currency such as the New Zealand Dollar (or GB pound for that matter).

The entire global financial system has been doing just this for the past few years and this massive flood of money into the New Zealand Dollar and for that matter the GB pound has been pushing the value of these currencies up, which has made the 'carry trade' even more profitable, since the value of debt devalued and the deposit appreciated relative to each other.

However this whole phenomenon has an element of a speculative bubble. The entire global financial system has placed huge bets on the carry trade and has thus far made handsome profits which it has used to drive up all manner of other asset prices. However, any major shock event could and probably would cause a massive stampede out of the carry trade (ie. a massive exodus out of currencies like the New Zealand Dollar and therefore a massive depreciation of these currencies).

This actually did happen in 1998. The Russian government defaulted on its external debt and this caused financial contagion, ie, widespead panic in the financial markets, leading to a massive stampede out of the carry trade. The US Dollar and GB Pound both lost more than 20% of their value against the Japanese Yen (which back then was also the major funding currency for the carry trade) in a matter of weeks. This caused major financial carnage and lead to the collapse of the celebrated LTCM hedge fund.

Only in the past few days, there have been reports of financial distress at investment funds linked to US sub-prime (ie. low end) mortgage lending market which a few people are saying could be the final trigger for the reversal of the carry trade, although it is utterly impossible to say whether it actually will be or not.

It is possible that New Zealand Dollars could keep climbing and the carry trade keeps chugging along and continues to make money for anyone depositing their money in New Zealand Dollars. But be weary. It could reverse at any time and blow up in your face at any point. And nobody really knows when and where that will be.