Openshore & GSS Developers

[SusieQ]

We have just got the hard copy brochure through too quoting 7.3 which is a bit naughty. Obviously we are now wise.

We also booked the rate for the next 12 months (phew!!) . I suppose we'll just have to see what happens after that.

[Crofty2000]

I just got the latest brochure from Openshore and they are using the 5.7 exchange rate which is near to the current value. I think they probably printed the previous brochures when rate was higher as thier on-line brochures have been showing a rate of 5.7 for a while. However the rate has been going up and down from 5.5 to 6.5 over the past few weeks. THe rumour is that it may stablize at around 6.5 but no-one really knows.

[MaxyzK]

A rate of 6.5 sounds like heaven at the moment! Yes, the pound has been battered and bruised lately, and I've just heard that the BofE have dropped interest rates by 1.5%, to 3% base rate! Will this deter investors from buying sterling, and strengthen the dollar even more? If so, our exchange rate for dirhams will suffer even more! I'm having to play the waiting game in anticipation for my next payment due in April.
Message to SusieQ - when u went to Dubai recently, did you visit the Lake Towers development site, and if so, was there plenty of activity? I guess there's not much to see at the moment, but if the brochures are anything to go by, 5th avenue looks good! I know they've still got apartments left to sell.
I was wondering if anyone considers whether buying a second parking bay at 5th avenue is a good choice? Will it make a good investment, should you wish to sell the flat with both parking slots in the future (remember that end-users may have more than 1 car!) ? Or the possibilty of selling the second parking place on its own for a small profit, if someone who has bought an apartment or studio without parking later decides that they would rather have a parking bay after all! What do you think?

[SusieQ]

Hi there MaxyzK.

Yes as a banker (!) I can confirm that the base rate has been cut to 3%!! I had heard that they want to get it to 2%, so we'll see.

Sorry MaxyzK didn't get to Lake Towers as we were on holiday with friends and relatives and as there probably wasn't much to see we were too busy sunning ourselves and messing around like big kids at Atlantis!!

I'm sure my other half had said that he'd had an email to suggest 5th Avenue was sold out??

[MaxyzK]

SusieQ - I got an email on 1st November from Openshore's agent stating that as well as the new GSS project Presidential Tower, there were still a few apartments left at 5th avenue. If your partner has had an email since then, my info is out of date.
As a banker - do you know if exchanging pounds for dirhams at a UAE bank generates a slightly better rate for us, than dealing with a foreign exchange specialist like CurrenciesDirect? As you know, the mid-rates quoted for foreign exchange are always different to tourist rates, which are always lower, just like buying shares. But I'm wondering if there is a slight benefit in exchanging a large amount of sterling over in UAE. If so, it would help towards paying for a flight over!
Thanks

[psychiatrist]

Dear fellow investors,
I just wanted to send my greetings and to ask you some questions to get your sentiment
1) No doubt you have heard about the problems in neighboring Dubai, all reports however seem to say that Ajman is more enduser friendly, and therefore more likely to have people who can afford to make payments regularly,
What do you feel about this
2) The Ajman bank opens its doors in January 2009, If i am to understand correctly it is a
Shariah bank, do you think it would be more likely to lend to end users, and if it does will it do at a better LTV ratio
3) What are your thoughts on a correction in theUAE market , could it actually be a blessing
4) Dont you think it is a good idea we stick together, the whole thing is built on trust, and hope i
I have yet to recieve a contract can anyone who has recieved one, let me know if it differs from the signed reservation agreement
5) Please keep me upto date and motivate each other to make the payments, now more than ever we are in this thing together, the only thing after sometime(re 2009) we need to hear about some progress on the site

[MaxyzK]

Hi Pyschiatrist!

Just when I thought this thread had gone cold, you pop up!
Tell me - have you invested in 5th avenue too?
I'm not able to help answer all your Q's, but here's my thoughts.

Yes we hear about Dubai's problems, and I can't help thinking that this will rub off on Ajman with price corrections too, but whether to a lesser degree, we'll have to see. It stands to reason that the domino effect will be felt.
I bought in June and will, along with almost all other investors, be affected by the price corrections. It's sickening, but what can you do?!

People will have bought with different intentions, but I guess the flippers have been scared off. Weak currency exchange rates don't help. Lack of affordability means that apartments and studios are probably harder to shift, yet every week I'm being emailed by property brokers staging exhibitions in London for Dubai/UAE property!

I haven't received a contract yet, just the signed reservation forms. Any ideas how long the wait for the contract should be?

I absolutely agree with you that we need to stick together and see this through, although I don't know how the developers like GSS are fareing with their (and our) projects. It would be nice if someone could shed some light and give us a report on the developers and the development!

[psychiatrist]

I always planned to invest longterm.
It is scheduled for completion in 2012. It would be interesting the word on the contract.
I also feel that the Emirates should rethink the residency visa, and should take steps of providing confidence such as focusing on the projects already launched, freeze all new launches, and start constructing,
That is the only way of ensuring confidence.
I would also be watching how Emirates City does, because it is due for completion sooner than emirate lake towers. If the most of it is completed it would give me an indication on how its neighbor will do.
The good thing is that prices in Ajman are cheap(550-650 per square foot) and i do not that the prices can fall that much far below, they are more likely to stagnate.
This developer has Savannah towers in EC, and i would also look at whether they manage to finish it. They also have lauched Presidents tower, Christies, and have started a Spa Hotel in Fujaira.
IF the majority of investors were endusers( more likely) then the price will appreciate fairly quicly as soon as the development is about to finish, and i still feel that all factors considered, it is better than putting money under the mattress, or in stocks at the moment

[SusieQ]

Hi Folks,

Maxyzk - Not sure if he's had an e-mail, but he hasn't mentioned it to me - I think he probably knows what I would say!!

I'm not sure what rates the UAE banks are giving, but to be honest it is a lot easier to deal with things on home turf that to try to comunicate with a foreign bank I suppose. Plus the fees in getting sterling abroad and the currency change can wipe out the benefit. The tourist rate is always ususally less than the rate currencies direct use, however they aren't the only currentcy traders and we should shop around. Somebody earlier in the thread mentioned another company and I did give them a call. I think they were a tad better but not so much that I was worried. I would think Currencies direct are linked in with Openshore and they possibly share a commission (??). Why else would they direct their clients there? Perhaps if somebody is in Dubai they could pop in and get the rates ?

We too are in it for the medium to long term so I'm not panicking just yet!!

In terms of lending in the UAE they have always been a bit slow on the uptake. Their LTV's and terms have been restrictive to the point that it's not worth bothering with them. Some UK banks lend for overseas properties (I think HSBC might do the UAE) but to be quite honest at the moment banks just aren't lending anything to anybody as we all know. Reducing base rate does nothing to get bank's lending again unfortunately. Confidence has been knocked and they will only lend to watertight propositions with reduced LTV's and high fees.

I too have not received a contract yet despite sending all my money on time to these people as requested, and yes I think we should definitely stick together.

[MaxyzK]

Just phoned Openshore to ask about when we would get the contract from GSS. They said after the 3rd payment (it does actually say on their notes, maybe I should have read it more carefully!), and that this would then allow us to sell if we wanted to! Like yourselves, I'm a long-term investor too, so I told them that was of no interest to me anyway.
I also asked them about whether they had sold out on 5th avenue. They said they still had about 10-15 apartments left, all of them the large 2-bed variety.
"And how are GSS doing at the moment, what with Tameer shedding jobs and Emaar having problems too?" I asked. "Nothing to worry about- big company- no distress signals- everything's hunkydory and on schedule- This is Ajman, different situation to Dubai- etc" was the reply. Oh, How I hope he's right!
Heard a report today that experts at CitiGroup think pound may well rally as high as 1.60 dollars, maybe even 1.67.