Buy Back offers

[itsnasir]

Can you provide the developer's name who are offering it and which particular building it is so i can complete my research?

[itsnasir]

Another big risk in the buy-back thing is that if market crashes, These so called "Well Known Developers" declare bankruptcy and disappear! These are all limited liability companies.

[Aryan Khan]

Originally Posted by itsnasir

Another big risk in the buy-back thing is that if market crashes, These so called "Well Known Developers" declare bankruptcy and disappear! These are all limited liability companies.

The fear which you mentioned applies to all developers in general. Any deal from any developer can go wrong if even a big name go bankrupt. I don't think your statment has any valid point.

Anyways. Buyback in general is a secure deal which i think saves u from being stuck in property, assures your returns and you still have rights on your property unitll you are paid in full(investment and returns)

Regards

[itsnasir]

I don't agree with you. There are developers like Nakheel and Emaar, who have projects worth 100 billion dollars all over the world and then there are people like you and me, launching buildings in ajman and selling them, only to run away later. And no any deal from any developer CANNOT go wrong, because you buy something, And u get IT! Even if the market crashes. But with smaller ones, They are gonna run away. That's my professional opinion, the rest is upto you.

[itsnasir]

And as far as Ajman property is concerned than it is already not in a stable condition because of electricity and sewage problems in Ajman. Investors in property have more trend towards dubai instead of Ajman because of the risk factor there.

[Aryan Khan]

Originally Posted by itsnasir

I don't agree with you. There are developers like Nakheel and Emaar, who have projects worth 100 billion dollars all over the world and then there are people like you and me, launching buildings in ajman and selling them, only to run away later. And no any deal from any developer CANNOT go wrong, because you buy something, And u get IT! Even if the market crashes. But with smaller ones, They are gonna run away. That's my professional opinion, the rest is upto you.

Now we are talking the same language, i agree new developers having few projects.. that may run away, thats why i used a word well known developers... there are not just Emaar or Nakheel who are well known, there are other developer with projects over 600m or billions

The developer i am talking about have delivered and have billions of project in pipeline.

If we all think your way, we might buy properties from nakheel and emaar only.

Anyways.

Cheerz

[Aryan Khan]

Originally Posted by itsnasir

And as far as Ajman property is concerned than it is already not in a stable condition because of electricity and sewage problems in Ajman. Investors in property have more trend towards dubai instead of Ajman because of the risk factor there.

Answer to your statement about AJMAN:


Infrastructure Development Projects

In an effort to evolve as a world class city, Ajman is investing on the development of its infrastructure. The value of infrastructure projects in Ajman has touched AED 1.4 billion in 2008. The infrastructure projects will support the speeding up of real estate development in the emirate.

Sewerage System
The government of Ajman has allocated AED 800 million for the sewerage system. The new sewerage system is set to enhance Ajman's economic development and significantly improve the health and environmental standards in the emirate. It will also help to lengthen the lifespan of buildings in the emirate and lower maintenance costs through the environmental improvements.

Road Network
The Ajman government plans to spend AED 3 billion over the next three years to develop the emirate's roads. There are more than 12 proposed projects worth AED 408 million concerning road development and improvement in Ajman to be completed by the end of 2011. The projects include widening and lengthening of several roads, construction of bridges and providing additional road lighting.


Electricity
In order to bolster its power segment, Ajman has signed AED 7.34 billion deal with Malaysian Mining Corporation (MMC), Malaysia-based power producer, which would bring Middle East's first coal-fired power plant of the region into the emirate. It would generate one gigawatt of electricity as early as in 2012. Two other power plants to be built by the Federal Electricity and Water Authority (FEWA) in Ajman will begin operating in the next few months in order to supply electricity to the existing real estate developments until the MMC plant is commissioned.


Airport
Ajman International Airport worth AED 12 billion will shortly take shape in Ajman to further enhance its business potential. The construction of the airport is set to commence in the second half 2008 and to start operations by 2011. The airport, spread over more than 60 million sq ft of area located 3.5 km from Al Manama, will be built by a consortium of private developers.

The airport will accommodate commercial aircraft with a capacity of 1 million passengers a year rising up to 10.4 million by 2046, as well as cargo of at least 400,000 tonnes and corporate aviation among other infrastructure capabilities. Several residential and commercial properties will be developed adjacent to the airport.

Public Transport
Ajman is all set to launch a low-cost taxi and bus transport system as part of its AED 1.5 million project that will service two fixed routes for a nominal fee. The project will be implemented in two phases. The first phase will see the operation of 6 taxis and 4 buses from Mushairif intersection to Lulu Hyper Market, through the City Centre, the University Roundabout, Al Gerf Industrial Area and the emirate's downtown.
The second phase will connect the Ajman town centre near Al Kuwait Hospital to the Industrial area, passing the old Passport Building, Galfa and Al Humaidia bridges and the vegetable market. Extra vehicles will be launched during this phase, including more trips to Sharjah. Plans are also afoot to extend the service to Umm Al Quwain and Ras Al Khaimah.

Hospitality Projects
Ajman boasts of a tranquil and serene environment, thereby enhancing its tourism potential. Due to tremendous rise in tourist flow to the emirate, Ajman has announced major tourism infrastructure projects totaling AED 5.55 billion. Two of the major hospitality developments in the emirate are the AED 3 billion Ajman Marina and AED 50 billion Al Zorah.

Ajman, being the third largest property market in the UAE, has all the characteristics to woo the potential investors. According to the Ajman Chamber of Commerce and Industry, over 33% of development projects in the emirate are owned by foreign nationals as against the 11% in other emirates.

Regards

[Dweebo]

I'm seriously interested in taking up one of these buyback offers. Can you please confirm the following (n00b here):

1. What does PDC mean?
2. Will the MOU clearly state the AED amount that I will receive back from the developer (incl. premium)?
3. If my money goes into an Escrow account, will I get that money back if the developer goes bankrupt/disappears?
4. Who do we pay the deposit to? Is it to you, the developer, or to the bank handling the escrow account?
5. Are you able to provide the names of the developers, if not on the forum, then in a private email?

Also is there anyone on here that has taken up any of these offers? I'm a little hesitant as usually when an offer sounds too good to be true, it usually is!

[Aryan Khan]

Originally Posted by Dweebo

I'm seriously interested in taking up one of these buyback offers. Can you please confirm the following (n00b here):

1. What does PDC mean?
2. Will the MOU clearly state the AED amount that I will receive back from the developer (incl. premium)?
3. If my money goes into an Escrow account, will I get that money back if the developer goes bankrupt/disappears?
4. Who do we pay the deposit to? Is it to you, the developer, or to the bank handling the escrow account?
5. Are you able to provide the names of the developers, if not on the forum, then in a private email?

Also is there anyone on here that has taken up any of these offers? I'm a little hesitant as usually when an offer sounds too good to be true, it usually is!

Answers to your questions:
1. PDC means post dated cheque. Some of the developers offer a post dated chaque of the amount invested and the returns. e.g. If buyback period is 6 months, you will get a PDC which will be dated 6 months ahead.

2. Yes, MOU clearly states the amount which is invested and the returns in AED.

3 & 4. Money will be directly paid to the developer to his account. Paying to the escrow account defeats the purpose of the buyback. Only regular sales are being paid to Escrows. So you will directly pay to the developer.

5. The details of the developer will be sent to you via email. Cannot be posted here.

These deals are very transparent, MOUs are supportive enough as everything is stated clearly in the MOU e.g. your investmentm, your returns and no further payments to be made etc.

These developers have a very strong profile and any kind of document can be provided if needed.

Regards

[Dweebo]

Thanks for the quick and detailed response. A few quick follow up questions:

- Do we therefore get the PDC straight away (i.e. a few days/weeks after our downpayment) or will it be sent to us only after the 6 months has passed?

- Some of the offers mention a commission to be paid. Is that paid by us and if so, how much would it be?

- Are there any additional charges that we'd have to pay following the buy-back?

I will also send you an email shortly.