#UNDER C: CANAL RESIDENCE WEST, 12F-20F Res (5 towers) (Sports City)

[unknownpleasures]

Originally Posted by Akasha

I already gave this info! Go back and READ!!!

Sorry about that I missed that bit ......but here's the bit you missed below...

Originally Posted by unknownpleasures
Do you think they will take notice of your construction buddy as you mention they know they are in breach of everything and say you get your apartment in the end so they believe you should be grateful by the sounds of it and any complaints about fit-out etc it may be doubtful they will fix? All the best with everything, it would have been great to see some pics since you are there on the spot.

[unknownpleasures]

Originally Posted by Akasha

Med owners, you can make your appointments for snagging now. It runs from 26th May - 4th June.

I've got the very first appointment - yay!

Emails were sent out today and all info is being fedexed today as well.

Great news, be sure to let everyone know how the snagging goes!

[Akasha]

Originally Posted by unknownpleasures

Sorry about that I missed that bit ......but here's the bit you missed below...

Originally Posted by unknownpleasures
Do you think they will take notice of your construction buddy as you mention they know they are in breach of everything and say you get your apartment in the end so they believe you should be grateful by the sounds of it and any complaints about fit-out etc it may be doubtful they will fix? All the best with everything, it would have been great to see some pics since you are there on the spot.

In all honesty who knows. I'm using finance so it will be the bank that makes the final call on it and let's face it, they're not likely to want to hang about - they want their money.

[unknownpleasures]

Originally Posted by Akasha

In all honesty who knows. I'm using finance so it will be the bank that makes the final call on it and let's face it, they're not likely to want to hang about - they want their money.

Not sure what you mean by finance, wasn't there periodic installments on these off plans or was this one different where you paid everything upon completion? If you prefer to speak in private message please do so as I'm not really sure what you mean as it appears from what you are saying if the bank doesn't feel it's worth it they won't lend you the money to purchase from my understanding, therefore you are not bound to purchase??

[Akasha]

Originally Posted by unknownpleasures

Not sure what you mean by finance

*sigh* it means I bought it using a mortgage from the bank!!!! As did many. And obviously when you buy a property using 'finance' from a bank, the bank on the SPA is effectively the 'buyer' (it's a tri-part agreement between the developer, the bank and you) as they make the installment payments and you just pay your monthly mortgage payments.

Because of the delay in completion, the banks put the mortgages on-hold, meaning you didn't have to pay the monthly payments and instead will pay the lump sum of interest on handover. So obviously the banks want completion and handover asap, so they can start getting their money back - so they're unlikely to do anything to delay that any further.

Also this is where I feel a few people are going to come unstuck. Even though my mortgage payments were on-hold, I still put the money aside every month for the lump sum payment, but I reckon many people won't have done and are suddenly going to be hit owing thousands.

[unknownpleasures]

Originally Posted by Akasha

*sigh* it means I bought it using a mortgage from the bank!!!! As did many. And obviously when you buy a property using 'finance' from a bank, the bank on the SPA is effectively the 'buyer' (it's a tri-part agreement between the developer, the bank and you) as they make the installment payments and you just pay your monthly mortgage payments.

Because of the delay in completion, the banks put the mortgages on-hold, meaning you didn't have to pay the monthly payments and instead will pay the lump sum of interest on handover. So obviously the banks want completion and handover asap, so they can start getting their money back - so they're unlikely to do anything to delay that any further.

Also this is where I feel a few people are going to come unstuck. Even though my mortgage payments were on-hold, I still put the money aside every month for the lump sum payment, but I reckon many people won't have done and are suddenly going to be hit owing thousands.

Thanks for explaining it however not all banks lend money for off plans and the reason why I had asked re finance. What banks want to see is something tangible so that they get their monthly payments and if not they take back and sell in this case they cannot sell it as it's not completed.

You are in fact very fortunate the bank did lend you the money as I have never heard of this happening before. Most people I know already had mortgages on their own home and all they did is up the limit or had a line of credit which is completely different to what you had and yes they are paying their interest each month because of the extra money. Have you not asked the bank if you will be up for the cost at the end? I suspect like you that everyone will be paying a hefty interest at the end as it's been a long time and banks are not overly generous, all they want is their money in the end no matter at what cost if they don't get it then they sell it to obtain their end of the bargain, so perhaps many people are up for that surprise but if I were you I would be finding this out from the bank as they are the ones that placed it on hold right or did you inform them the project had been stalled as it has moved a long but very slowly.

All this is very different the reason why I am asking, as it's not all the same.

[Akasha]

Originally Posted by unknownpleasures

You are in fact very fortunate the bank did lend you the money as I have never heard of this happening before.

I am very very surprised to hear you say that, as with this project two banks were onboard to supply mortgages - Dubai Bank (now bust and taken over by Emirates Islamic bank) and another. Actually don't know of many projects which DIDN'T have banks onboard providing finance! And having had meetings with Dubai Bank about it all they offered mortgages on many off plan projects. In fact virtually everyone I know who bought off plan is mortgaged through a local bank!

In the mid 00's banks were shelling out cash left, right and centre for property investments!

The banks liaise directly with the developers/contractors - the purchaser i.e. ME is the last person to get any information.

Also probably what has added to the delay is the developer demanding 100% payments BEFORE completion and the banks saying HELL NO!!! And sticking to the payment plans in the SPA. Sadly though many people were forced to start paying back before completion on other projects, otherwise it would have dragged on for years. I know Dubai Bank were very concerned they were going to have to ask people to do the same for CRW, but they stuck to it - probably why they went bust and had to be bailed out in the end.

Nope nothing has changed as per my payment plans, I will just pay the interest on the payments on handover, then the monthly payments will be as originally agreed. And when EIB took over from DB it was expressed that nothing would change in the original agreements.

[unknownpleasures]

Originally Posted by Akasha

I am very very surprised to hear you say that, as with this project two banks were onboard to supply mortgages - Dubai Bank (now bust and taken over by Emirates Islamic bank) and another. Actually don't know of many projects which DIDN'T have banks onboard providing finance! And having had meetings with Dubai Bank about it all they offered mortgages on many off plan projects. In fact virtually everyone I know who bought off plan is mortgaged through a local bank!

In the mid 00's banks were shelling out cash left, right and centre for property investments!

The banks liaise directly with the developers/contractors - the purchaser i.e. ME is the last person to get any information.

Also probably what has added to the delay is the developer demanding 100% payments BEFORE completion and the banks saying HELL NO!!! And sticking to the payment plans in the SPA. Sadly though many people were forced to start paying back before completion on other projects, otherwise it would have dragged on for years. I know Dubai Bank were very concerned they were going to have to ask people to do the same for CRW, but they stuck to it - probably why they went bust and had to be bailed out in the end.

Nope nothing has changed as per my payment plans, I will just pay the interest on the payments on handover, then the monthly payments will be as originally agreed. And when EIB took over from DB it was expressed that nothing would change in the original agreements.

This may have occurred with Dubai Banks and you have confirmed this to be the case as there are different scenarios and it doesn't happen like this everywhere. Banks elsewhere will eliminate all risks upfront as much as they can foresee and above-all they need to know they will be getting something for their borrowed monies and will not tolerate giving out money just willy nilly and can refuse to lend any monies if they don't see it being viable. There are also conveyancing companies or lawyers involved in the whole process relating to exchange of contracts (not in Dubai especially in 2007)to ensure all goes smoothly between the purchaser and/or developer/seller, the bank then releases the funds to the purchaser as it is up to the purchaser to control the funds once the bank is satisfied the worth of the property so if anything should happen they can sell it themselves should the purchaser be unable to meet the repayments as all this is done through a proper process where lawyers provide the details to the purchaser and the purchaser pays the lawyer the funds so these transfers can take place between all parties.

However some people as explained above have already got an existing mortgage they are already paying so all they do is increase monies on that mortgage and that means more interest is required to be paid on those borrowed monies each month regardless of it being completed or not in Dubai. Borrowing money from banks is a big thing in most countries and the banks hold all the mortgages on the existing property but the borrower is still responsible for any borrowed monies at all times.

The banks provide all the funds upfront to the purchaser/borrower if they have either a line of credit or an already existing mortgage as these monies can be borrowed against as mentioned an already existing property which is collateral (meaning the bank can get their money back should there ever be an issue by selling the already existing property which is the roof over the purchasers heads). The banks don't involve themselves in any of the payments as the money is in the borrowers account reading to paid when required, the reason why they pay the interest on the monies borrowed. People I know didn't go through banks in Dubai and the reason there shouldn't be any surprise factor involved as usually people go through reputable developers and banks check the values of the property first prior to lending any monies.

However should there be any issue the banks would not care to hold off as the deal has already been done i.e. borrowing the money as all they want is their money in the end and those monthly payments must be made on the monies borrowed (and is the amount used up already for the installments paid) or the purchaser would require to sell their already existing home if they were unable to meet the repayments per month which has become difficult for them as delays of 6 years was not what the contracts stated. This is what Dubai cannot fathom that people have borrowed funds on already existing mortgages and do not realise how much stress people are going through when they only have holes in the ground they are paying for. Not everyone resides in Dubai also and have not borrowed as mentioned through Dubai banks.