Ras Al-Khaimah - Pacific

Discussion in 'UAE Property' started by anil, Apr 10, 2008.

  1. milktrayman

    milktrayman New Member

    I am also in the process of going through the contract and signing very soon.
    I am not used to this fixed rate over spot rates business, HiFx rep tells me it is better to fix at this stage due to the dirhams being pegged very soon with the Euro rather the the dollar, what are your thoughts on this. I realise that it comes down to how much of a risk taker you are and your perception. I am interested on other pepoles thoughts on how they have in teh past or how they will be sending the instalments ?
     
  2. mazi

    mazi New Member

    Depends on what currency you already keep your money in and how well it is doing

    Don't forget currency dealers would try to convince you to go for the fixed rate as it would be a better deal for them, e.g. pound to aed is currenly around 7.3 on the spot rate whereas the fixed rate i was offerred was 6.7
    they would try to convince you that AED would go up in the next few months (this pegging and de-pegging business) so better to fix a rate, but realistically they would'nt be offerring you the deal if they genuinely believed in that, as they would be the ones losing money

    I personally decided to go for the spot rate - BUT always keep an eye on the market - it's never late to fix a rate if you felt your currency is falling against AED
     
  3. milktrayman

    milktrayman New Member

    Cheers Mazi, That is the impression I am getting from them and have decided to keep track of the rates and decide per installment.
     
  4. mazi

    mazi New Member

    Hi Sands

    Pacific isn't actually an island itself. It is a project on Al Marjan island

    Hope that helps
     
  5. richie83

    richie83 New Member

    i was told a couple of weeks ago that studios in samoa were sold out. not sure about the other building which has studios.
     
  6. Sands

    Sands New Member

    Pacific

    Thanx a lot dear..I had no idea. Can you provide me details on Dana Island. Are there any small plots available on sale without premium?
     
  7. mazi

    mazi New Member

    No idea about Dana Island, sorry. Perhaps you could try the Dana Island thread :eek:
     
  8. anil

    anil New Member

    On the subject for forex, I dont think HiFX are taking any risk in the forward rate. They will be getting the forward rate from the market.

    You are being quoted a lower exchange (6.7 I think) than the current spot (7.3) becuase of the way the forward contract works.

    Without getting too technical, you are agreeing to buy AED for GBP at some time in the future. But, for that time period, you are earing interest on your GBP and the seller is earning interest on the AED. Now, it is not fair that you might make more interest than the seller, so the exchange rate is adjusted so that you both come out even.
    Of course, hiFX will be making some commission for arranging the deal for you.

    All this becomes interesting when you are on a 15 year payment plan, becuase the currency movements can have a big impact on what you actually pay.

    Apart from the USD peg issue, which I dont think will be dropped, there are also the discussions about the single GCC currency in 2010. Do some google searches on the news to see.

    Personally, I think a single currency will strenghen the region and result in more investment which would, hopefully, cause property inflation.
     
  9. sohail

    sohail New Member

    hi:

    i have bought a few plots on dana island bruilliant location from adams estates co uk . you can try to call them or view their website. the plots are not on the website.
     
  10. sohail

    sohail New Member

    call adams estates on 01924 467 467 they have plots with no premium.
     
  11. milktrayman

    milktrayman New Member

    Anil,

    Have you gone fixed rate for this development?
     
  12. anil

    anil New Member

    milktrayman,

    I have not fixed, but I might do in the future.

    The 15 year plan also allows part or full repayments so there are other options available eg borrow in the UK and make the full repayment, make some partial repayments from savings etc

    I think if the exchange rate rises over 8Dhs (for GBP) it might be worth locking that in.

    What are your thoughts?
     
    Last edited: Apr 30, 2008
  13. mazi

    mazi New Member

    I thought you could only fix for a max 2 years

    I have tried several brokers - nobody is willing to fix at or even near the market rate. The fixed rate will always be way below the market rate, e.g. even if GBP to AED rises to 8 I find it unlikely they fix anything near that
     
  14. richie83

    richie83 New Member

    how likely do you think it will reach 8Dhms per GBP?? Seems to be struggling around 7.2-7.3 for the last couple of months.
     
  15. anil

    anil New Member

    Hi,

    The exchange rate was around 7.7-7.8 in Nov last year.

    Getting back to that level depends on the USD. There is a recession in the US and interest rates are going down fast.. this affects exchange rates.
    But, it is difficult to say how likely it is to get there.

    This is why currency brokers advise people to fix the exchange as far as possible, so you know what you will be paying (and maybe you can sleep at night!).
     
  16. richie83

    richie83 New Member

    so you would predict that if the dollar goes down, we should get more dirhams for our pounds.

    sorry if this is a stupidly obvious question. i am hoping to see a rise by sept which is when my next installment is, i'd be happy with something around 7.5!
     
  17. anil

    anil New Member

  18. Kimo

    Kimo New Member

    From what I read, unpegging from the USD is almost impossible mainly because the rulers of these gulf countries own billion of dollars of assets in US so unpegging means the value of these assets will reduce. Too bad for their countries as long as these rulers don't lose a penny.

    As for the single GCC currency, again it is just talk, there are so many issues that these guys need to resolve between themselves before agreeing to single GCC currency, I don't think this will happen in our life time, maybe next century.

    Kimo
     
  19. Kimo

    Kimo New Member

    Contract

    I have received my contract and only had two observations:

    1. Clause 15.1 Seller is allowed 18 months delay that equates to 10,000*18 = AED180,000 potential rental losses to the buyer. In the other hand the Buyer has only 20 working days delay! I don't see the balance here. I think more than 6 moths delay from the Seller is unfair and unreasonable.

    2. Clause 15.2, there are no penalties on the Seller if the Seller delays the completion day beyond June 2012? The Seller has held the buyer money for 4 years!


    Cheers :),
    Kimo.
     
  20. Kimo

    Kimo New Member

    You see there are six towers all together:

    1.Samo
    2.Bora Bora
    3.Tonga
    4.Tahiti
    5.Fiji
    6.Polynesia

    Studio apartments are only available in Samo and Bora Bora. All studio apartments in Samo are sold out and Bora Bora is not released yet. If you are really keen they might start selling you in Bora Bora (please don't quote me on this).

    cheers,
    kimo:)
     
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