Can National Bonds Corporation be mute spectator to what is happening to its bond holders for the issues faced in relation to ‘Skycourts’ the very first project that was launched with object of giving the bond holders homes at affordable prices or a decent return on investment. With no clue to the date of possession and because of delay in the project the bondholders are paying for living in rented houses. Also with properties prices taking a sharp nose dive sales or rent would hardly fetch any profit. There have been sustained efforts by the Skycouters to see that they get a reasonable deal but all the efforts are going down the drain with the banks and Deyaar turning deaf ears to their repeated pleas.
Two very important points come to fore:
National Bonds Corporation is still the owner of the property, Deyaar is just a manager
National Bonds Corporation is not a commercial property developer, profit earning is not it’s primary objective but it is an institution to help people earn decent return on their hard earned money
Given National Bond Corporation’s position in relation to the project and as one of government's frontline organization it can prevail upon financial institutions and the property manager. All is what the bond holders are asking for a reasonable pricing looking at the prevailing gloomy situation. The financing banks or companies to the project would readily charge for any delay in any form of payment due, shouldn’t these companies penalize contractor or property managers who have delayed the project? Above all why should bond holders be forced to pay for profit during construction for none of their faults?
The only door of the hope left to be knocked is that of Mr. Mohammad Qasim Al Ali, Chief Executive Officer, National Bonds Corporation. What is heard about him is that he gives patient ear to genuine issues and is very generous man. Above all National Bonds Corporation is organization of high repute and integrity and wouldn’t wash off its hands from the situation that would leave it’s bondholders in lurch.
Insha'Allah something fruitful would happen.
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14 comments:
Good Evening.
Finally, An Update! :)
Thank you very much for updating this Blog. I am planning to Call "RERA" to check what are our rights after a Full Year delay?!
Last year Deyaar said that the project will be ready in Q2; Now they say Q4!!
Personally, my financial plans are suffering.. and may be "Hospitalized" :P
Looking forward for a "Sunny" Morning - One day ;)
Thank you again and looking forward to meeting you in the opening Ceremony of "SKYCOURTS"
Not only your financial plans are suffering but this is valid for majority. I am afraid how many from us would be able to pay at the time of possession. What I remember at the time of booking we were told that we need to pay some registration fees at time of collecting keys and only the first payment would be the EMI as we move in. But the picture seems to be much murkier now.
Kamal_db@hotmail.com
this is very unfair, the delay is more than one and a half year and the banks are charging us profits for all this period!!
A very unfair situation, and the worst thing is the renting rates are going down and the bank's profit rates have not changed!!
I'm seriously thinking of taking a legal step to cancel the whole deal!!
It is pathetic that the clients are penalized for something they do not have any control of. The construction is delayed and clients are being penalized and suffering in two ways first by paying the so-called “profit” or “Advance Rental” to the bank and on the other hand paying for the rent by staying somewhere else during this period of delay.
Sharia believes in sharing the loss and the profit. As per Sharia, the Asset that is not handed over to the client, how the Bank can charge the Rental from the client. In Islamic financing Banks calls it a Advance Rentak and sometimes profit!!!. Is this product sharia compliant where Bank is making a profit on somebodies losses. Clients are making huge losses. They infact should be sharing a loss instead of charging a profit!.
National Bonds should also look into the possibility of offering compensation for the delay in the handover to the clients.
It is pathetic that the clients are penalized for something they do not have any control of. The construction is delayed and clients are being penalized and suffering in two ways first by paying the so-called “profit” or “Advance Rental” to the bank and on the other hand paying for the rent by staying somewhere else during this period of delay.
Sharia believes in sharing the loss and the profit. As per Sharia, the Asset that is not handed over to the client, how the Bank can charge the Rental from the client. In Islamic financing Banks calls it a profit. Is this product sharia compliant where Bank is making a profit on somebodies losses. Clients are making huge losses. They infact should be sharing a loss instead of charging a profit!. Moreover National Bonds should also look into the possibility of offering compensation for the delay in the handover to the clients.
I was just going through the Purchase agreement/contract (first time actually)
I found following
Completion date of the project 30/06/2009 Page No. 5
Extension Date Six months (Article 6.1) Page 11, provided that seller should inform purscaser befor 30 days ( I have not received any letter and 6 months has already passed 4 months back)
very important clause 12.1 page 15
if the puchaser has fullfilled all his obligation in terms of agreementand seller is unable to give posession than purchaser can give notice to seller and claim his money back
i WILL SUGGEST EVERY ONE TO CHECK THIS AND DO SOME COMBINED EFFORT
BECAUSE ACTUAL MARKET VALUE IN THE PRESENT MARKET IS ROUND 450 PSF
Thanks Mudar for extracting this importanat info. I strongly support his point, we should collectively move in that direction.
kamal_db@hotmail.com
in all fairness we should instead of gettting in to legal battles should propose national bonds to waive off the balance 25% which is due on completion, and pay the construction profit to the bank on our behalf
Thanks for the up date. I think proposal given by Mudar is legally ok and propsal of Deepak can also be considered to avoid legal war.
Guys...any ideas of how to work collectively ? I believe we don't need to lose any more money, if we're going to communicate with National Bonds or go to the legal option, we xhould do that all together!
I also strongly support Deepak Kumar's views. And there are reasonable grounds for that. Construction costs have dropped significantly and many developers have given discounts up to 30% to their customers. Again keep in mind these companies are purely commercial i.e. property developers while National Bonds is entity who ensures that the bondholders don't suffer loss. If commercial companies are offering discount, a semi government entity shouldn’t have any problem to do so.
Kamal_db@hotmail.com
Hello Everyone
I have just discovered this blog and am quite impressed to see the amount of info you all have shared on it. I own a 2b/r in Skycourts and am equally concerned about the construction delay.
If there is any payment delay on the buyer's side, the developer jumps onto the opportunity and charges interest on late payment without fail. So why shouldn't we get compensated becuase of such a huge construction delay.
Secondly, the developer would have surely benefited becuase of lower cost of construction considering a huge drop in material prices over the last 12 to 18 months. There are developers who are passing on such savings to owners in form of discounts, so why shouldn't we get some.
Thirdly, I have noticed that there are banks like Mashreq who are offering re-financing of home mortage as well as new home finance at about 6.25% p.a. today. I have to come to know that Skycourts or National Properties are not registered with such banks under the re-financing scheme and that forces customers like me to keep paying EMIs at about 8% to 8.5% interest p.a.
The market dynamics have changed for everyone, so why should only the banks and developers benefit and the buyer is expected to stick to what was originally agreed.
Hi Everyone,
It is surely not fair of National Bonds to seek payments from its bondholders while letting the builder go scott free. It is also not fair of Dubaibank to charge profit rate of 8.5% to its customers as advance rentals for an indefinte period. I know that banks like DIB had decided NOT to charge profit if property is deayed beyond a year.
I had recently gone to RERA ofie for support but they have expressed their inability to help. Instead they advised to seek legal action as they believe that nothing will happen without that. They have also confirmed that Skycourts is behind on the latest schedule provided to RERA and not expected to handover any property this year.
Well guys, this means that we will have to pay for c. 2 years delay @ 8.5% p.a.. Roughly speaking, for a 2-bed apartment, this additional cost would be c. Dh 130,000. Dont forget that this is on top of the normal proft for the costruction period that the bank will charge at the time of delivery. All told, most of us will end up paying over Dh 200,000 on top of the price committed to us by National Bonds. If my calculations are wrong, I would be happy to be corrected. Otherwise, we must pool our remaining resources and hire a good lawyer to save ourselves from potential bankruptcy. Remember that Dubai bank has our post dated cheqhes that they would be very happy to lodge and declare us a defaulter in case we fail to pay any sum demanded by them at the time of delivery.
A stich in time saves nine.
Action time is now!
Hi all. my name is Amjad, it's my first time i visit this site. I am living in Canada,and I own an apartment at skycourts project. i don't have any information about the project, what is going on? please someone help me.
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