Damac at a Loss Over UN Site

According to Arabian Business.com, preparations are underway by a UK based lawyer against developers and culinary experts DAMAC after the revelation that two projects being sold off plan (La Residence and La Residence 2 at the Lotus) are actually on land that is, or at least part occupied by the United Nations.

In nutshell, DAMAC have been selling the projects since 2006/7 off plan, taking installments as they go. Fair enough one would think, however the sticking point seems to be as to whether clients were actually told that DAMAC did not have vacant possession of the land.

Apparently when DAMAC were pressured they were “at a loss to explain when the plot would be handed over by the master developer Dubai Properties and when construction would start at Lotus.”

It would seem the deal was that the project would be completed 3 years after the handover of the land.

That’s all well and good, but what about a timeframe for the handover of the land? News sources at the time of writing don’t appear to have an answer for that one. In theory, DAMAC who own the land according to the article, could continue to allow occupation by the UN until the end of time leaving “investors” having to pay out installments for something that would never even be built!

Unsurprisingly the “regulatory” body for the region, RERA doesn’t appear to have commented on the matter, having said that, it is a little difficult to tell after trying unsuccessfully to wade through all the pop up ads on their website.

To be honest, much of this is no surprise. Developers and agents were incredibly greedy in the beginning, many of them coming from entirely unrelated businesses (The original DAMAC is a catering firm) with no or little experiance. Things were fine for a while in the boom time, but now things are sinking fast, the money has been spent.

As Q2 rental figures show waning performance for Dubai, the worst is yet to come we fear.

(The original article from Arabian Business can he seen here)


What are the things one should notice before taking possession of the property or new flat in India?

Sumit was finally relieved that he will be getting the possession of his flat in Noida. Sumit had bought this under construction flat in 2009. After many delays due to environmental clearances and slow progress by the developer, the flats were finally ready for possession for flat owners. Sumit and other flat buyers in this group housing project had several rounds of discussions with the builder and environment ministry for speedy delivery of flats. Because on one hand, many of these flat buyers including Sumit were paying monthly rent and on the other hand, EMIs on these flats had started. That was double whammy for Sumit and others.

Now that, flats are ready for possession, what shall Sumit and other home buyers like him verify in order to make sure possession of flats is legal? Before handing over the final payment and taking possession of the property, Sumit and other flat buyers in this group housing project shall ensure that:

  1. Property is vacant
  2. Title certificate to be handed over by seller to buyer
  3. Buildings plans, approved layouts, and other supporting documents (original) to be handed over by seller to buyer
  4. In case of new group housing project (as is the case with Sumit), it shall be verified that building has been given the occupancy/completion certificate by the concerned authority
  5. Mutation is done to reflect the name of the purchaser

Find below detailed document highlighting what needs to be checked before taking over the possession:

Rent Stabilization Fails to Target Those in Need

Rent stabilization is a transfer from those who own rent stabilized units to those who live in such units.  As such, it is not a specific redistribution from high income households to low income households, but rather a random distribution from owners of various income levels (who can range from middle-class owners of one unit to large holders of private equity or REITS) to renters of various income levels.

I know of no good way to recover the incomes of property owners, but we can get a flavor of the distribution of income among beneficiaries of rent stabilized properties in Los Angeles, by looking at the income distribution of those who live in properties built just before rent stabilization and just after.  We can’t exactly nail it, because rent stabilization in LA went into effect into effect in October 1978, and the census tells us the decade in when properties were being built.  Still, comparing the incomes of renters living in buildings built in the 1970s with those of the 1980s can tell us something about how well targeted rent stabilization is.

I downloaded American Community Survey data from IPUMS USA.   (See Steven Ruggles, Katie Genadek, Ronald Goeken, Josiah Grover, and Matthew Sobek. Integrated Public Use Microdata Series: Version 7.0 [dataset]. Minneapolis, MN: University of Minnesota, 2017. 
https://doi.org/10.18128/D010.V7.0).  I looked at the city of Los Angeles, and stripped out single family detached houses, and, of course, owner houses.  I used the ACS Household Weights.  Here are the income distributions I found for properties built in the 1970s and 1980s.

Note that the median income of those in (largely) rent stabilized units is higher than those in units that are not stabilized.  Also note that the incomes at the 75th percentile are nearly the same.  At the 90th percentile, people in 1970s vintage properties have a lower income than those in 1980s properties, but their income is still rather high (i.e., it is a reasonable question to ask whether households who make $114,000 a year or more should be receiving a housing subsidy).

Taxing people of means (which we can identify) to provide housing subsidies to those without is good policy.  It is the correct way to help those whose income is insufficient to pay for adequate housing.

(p.s., whenever I post something like this, I welcome any and all attempts to reproduce it.  I makes mistakes!).

REBGV Sales Update Through September 2018

REBGV released their stats package through September 2018. Here are the numbers:

And by popular request, here is the months of inventory and Greater Vancouver composite HPI on a time series graph. The stark increase in MOI and accompanying change in price can be seen.

Sales are very weak. Months of inventory has increased to the point where at least a mild price correction is likely. The MLS-HPI is dropping.

The market is very slow. This is on the lower side of my prediction from the beginning of the year; a more significant slowdown after a near-unprecedented run-up in prices in 2015 through mid-2017 was always going to be a possibility. I am now formally on housing correction watch. More housing supply is coming onto the market, remember, and that will help with increasing for-sale inventory in 2019. Corrections do not last forever, but that does not mean there are not some lean times coming. Some people are calling for a substantial correction and some people were anticipating price corrections back in 2014 before prices proceeded to increase another 50%, so for all we know we are very removed indeed from a bottom. I have no evidence to suggest calls for a more substantial correction are fundamentally incorrect, but that does not mean such a call is certain. Nonetheless, I think the next order of business should be to figure out where the bottom is going to be.

What happen if you Sell Your House Without An Agent

We live in a world where everyone does everything without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even remodel homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent in [market_state]?

Saving Money

Agents cost money. It’s that simple. In many cases, it’s a lot of money. A real estate transaction can cost six percent of the final property sales cost. If a property sale price is $500,000, this can cost sellers $30,000. This amount is split between both the buyer’s and seller’s agent.

This is a considerable amount that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage. Just increase net profits is attractive to sellers. Keep in mind, just because you don’t have an agent as a seller doesn’t mean you can preclude the buyer from having an agent.

Most sellers end up paying between two to three percent to the buyer’s agent in self-represented sales. However, if you are new to real estate sales, the buyer’s agent might try to negotiate a bigger commission because he will most likely be doing work on both ends of the transaction to make up for your lack of experience and understanding.

Qualified Negotiator

Even though you can’t force the buyer to not have an agent, it doesn’t become negotiating power to say you are more flexible in the price if there is no outside representation. Buyers might feel they are able to negotiate a better price without an agent because they know the amount of savings in the transaction.

Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the escrow process. When a seller is comfortable dealing with a buyer or buyer’s agent, he can save at least three percent of the commissions by representing himself.

It is also possible that the transaction is very straightforward. Perhaps it is a new construction or being sold as is and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.

Keeping Things Personal

There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. In cases like this where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Of course, there needs to be a lot of trust among all parties in this type of transaction scenario.

Even when parties to a sale know each other, legal sale requirements must be followed. Adhere to all [market_city] codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.

Debt Consolidation Loans and Home Loan Refinancing Differences

Considering the face of significant financial difficulties of the various options to address the situation of any of these obligations, it is important to understand the difference between mortgage refinancing and debt consolidation loans is. However, the advantages and disadvantages to each choice is important to protect the very future itself for the pursuit of both will be prohibited. Know the potential impact of each. In most things, for more information on any financial decisions will be considered to be a very wise as my education.

Is important is to know the difference between mortgage refinancing and debt consolidation loan First, the structure of the collateral is very different. Personal guarantees may be unsecured, or yuan, while ensuring the security of home mortgage refinancing. This means, if the loan is in default, if you will, even if the bankruptcy, losing your home is nothing. Seem attractive for cash and bills and debt refinancing your mortgage out of your house, it is one of the home itself is at stake is to use one may lead to a dangerous situation Remove the pull a certain amount of money. Use a loan or as collateral should be considered carefully for refinancing conditions are this type.

Financing of the following two key considerations from the perspective of one of each type of fee structure. May be integrated into any free loans can be refinanced mortgage closing costs dramatically (if it is government loans), which is associated with or affordable. In most cases, a single one when thousands of (legal fees must be paid to mortgage refinancing a few hundred dollars, in addition to the evaluation of new property in) the fees, the mortgage company is expensive: loan origination fee, charge thousands of dollars to represent a combination of a point charge and the title search. These costs are often the loan is increased because at the time of refinancing the principal balance will be rolled back may be overlooked. Also, this is one one mortgage payment and monthly expenses, to pay a single one, to ignore the cost of the route is very familiar with that simple.

Before any of the following two options and make a decision between the two, it is important to make a realistic evaluation of the real cost of each method. Once placed in the proper context, these can only make a rational decision and two pieces of information.


A Research Conducted by Nwabuisi Dennis



            Over the years, there have been questions raised
about the effects of security with regards to the real estate sector in respect
to property values and development as it relates to the general growth and
development of the real estate sector.

Notwithstanding the persistent rise in the
insecurity level in Nigeria today, the quest for shelter (real estate) can be
dated from Adam. Shelter as used in this context implies housing and the real
estate sector as it is one of the crucial needs of man in conjunction to food
and clothing. This is the more reason why the security of man’s habitat/neighborhood
is of great importance because as the saying goes “Life has no duplicate”, this
connotes the fact that the security of real estate sector has an important role
to play in the development if the real estate sector and in turn to the overall
growth and development of the economy in general.

Security of lives and property is one of the vital
duties of the government as well as the individuals in any given estate because
the security of these lives forms the basis of almost the day to day activities
of the people that are there because of the perception of a secured environment
has a positive and psychological effects on the lives of the citizens in a

Nigeria being one of the developing countries of
the world located in the West Africa has become investors den for carrying out
real estate and property investments as one may have it. Over the past few
decades, Nigeria have been faced with various insecurity issues and these
issues have increased sporadically since 2009 that it was on the increase in
the northern part of Nigeria. Real estate investors now see the high risk level
of insecurity in the country as one of the factors that possess threat to their
various investment options. In most cases, these investors when carrying out
investment analysis, appraisals and study might end up selecting and exploiting
other options which might not be real estate which has little or no insecurity

                  In Bello (2013), it was reported that Nigeria’s
population is on the increase and thus have given rise to various social vices
and crimes which in turn have increased the level of insecurity in the country.

Nevertheless, the research would be systematically
carried out to pin-point the effects that insecurity has on the real estate
sector, taking cognizance of the reviews and attempts made by other scholars on
this topic and other related topics to ensure that useful facts and
recommendations are provided to help in reducing the negative effects of the
insecurity saga in the real estate sector as we see today.

               Furthermore, the research would be carried out to
highlight the other effects that insecurity have on other ancillary sectors to
the real estate sector as they all affects the overall growth and development
of the economy because studies have shown that an unsecured environment or
neighborhood is drastically affected by the menace of insecurity either
positively or negatively as this research would be answering these questions.
Also the effects insecurity have on the property values in the real estate
sector would be looked into in the course of the research.

                Based on this, the research would attempt to bring
this problems facing the Nigerian economy to a minimal if not a complete
tranquility in the real estate sector and furthermore improve the growth and
development of the real estate sector and give more investment insights to the
real estate investors and property owners in the sector.


                Nigeria is a large country densely populated with
all manner of people and as a result of this and many others factors, the
country is now faced with various insecurity issues such as militancy in the
South especially in the Niger Delta regions, insurgency in the North as we see
the case of the Boko Haram sects who are tagged to be terrorist groups
affiliated with the killing and assassination of both Muslims and Christians
with the goal of creating an ungovernable state and disrupt the peace and
coexistence of people in the country.

             On the
Other hand, there have been a rise in the rate at which real properties are
brought into the real estate market for sale especially in the area where
insecurity is seen to be high. There have also been high case of void
properties especially in these areas too. It is based on the forgoing that the
researcher seeks to carry out this research in order to determine and address
if there is a relationship between insecurity in Nigeria and the development of
the real estate sector.


            The aim of this research is to explore the
insecurity in Nigeria and its effects on the development of the real estate
sector. Based on this aim, the researcher will pursue the following objectives;

1.  To determine the various causes of insecurity in
the country.

2.  To highlight the various forms of insecurity in

3.  To determine the relationship between insecurity
and real estate development.

4.  To determine the effects of insecurity in Nigeria.

5.  To proffer means of curbing insecurity problems in
Nigeria with a view of promoting the development of the real estate sector.


The following research questions below will help
the researcher to systematically and logically carry out the research properly
and effectively to address the already listed objectives above. They are;

1.  What are the causes of insecurity in the country?

2.  What are the various forms and types of insecurity
in Nigeria?

3.  What are the relationship between insecurity and
development in Nigeria?

4.  What are the effects of insecurity on the real
estate sector?

5.  What are the possible means of reducing and curbing
the insecurity problems in the country?


              Over the years, several attempts have been carried
out by different scholars and other researchers on this subject and other
subjects. This research will be of great importance in so many ways and to
other schools of thoughts who would be making reference to this literature. As
the research focusses more on the insecurity problems in Nigeria and its
effects on the real estate sector, the research would be of great significance
to the real estate developers and investors in the sense that it will be a
guide to them on the Nigerian real estate sector and also disclose the
insecurity effects on the real estate with an attempt to proffer solution to
curb these effects on the real sector as an investment to enable them take good
decisions regarding their investment to the advantage of the sector.

               The study would emphasize on the various insecurity
issues in the country, their causes and possible solutions. This will be of
immense importance to the government and people of Nigeria in achieving a more
secure nation by recommending various government intervention programs against
insecurity in the country.

               Lastly, the research will enrich the scanty
literature on insecurity in Nigeria as it relates to the real estate sector. In
other words, it would add value to the existing body of knowledge and be a
reference point to the upcoming scholars and researchers in the field of estate
management and other related fields like national security, civil defense etc.


              The entire body of the research is a vast one in
the sense that the jurisdiction under review is the entire country and the real
estate sector, therefore the research was randomly conducted and real estate
carefully selected to reduce the stress of moving around the entire country
with the time frame available for the successful completion of the research.

             Secondly, as a result of the complexity of the
research, strategic locations, states, real estates were constructively
selected. This was done this way to give room for the accommodation of
travelling expenses incurred by the researcher as well as the risks of plying
the road all time in the course of conducting the research.

             Thirdly, using the present insecurity situation in
the country, the North as the most suitable location for carrying out the
research and as such the researcher was faced with so many challenges like the
language problems which the researcher was able to overcome by having someone
to interpret some local languages that were alien to me. Also, the problems of
the acquisition of data was a bit hectic and so, questionnaires were sampled
and issued out to the resourceful persons and individuals who are willing to
give out useful information for this research. As a result of the state of
emergency in the states in the north, the researcher’s movement in the area was
limited and restricted in some remote area to ensure safety.

            Lastly, the researcher was limited to sufficient
internet data on the computer modem in terms of finance in constantly
recharging it. Nevertheless, adequate use of the medium was applied in the
sense that good sites and search engines were used to save time and money in
surfing the internet all day. So it is based on the above limitations that this
research was conducted. 

To be continued in Chapter 2.. Happy Reading

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Short-Term Rentals Will Get Hotel Tax Treatment Under Newly Enacted Massachusetts Law

Under a newly enacted Massachusetts law, short-term rentals in Massachusetts will soon be taxed at the same rate as hotels. Massachusetts governor Charlie Baker signed a bill into law in late December aimed at regulating short-term rentals. This new measure goes into effect July 1st, and requires all hosts to register with the state, carry insurance, and taxes them at the same 5.7% short-term rental tax that hotels currently pay. The new law is expected to bring in at least $25M annually for the state. However, hosts who rent their home fewer than 14 times annually are exempt from the tax. 

The most popular short-term rental website, Airbnb, is very unhappy with the decision and is already preparing to fight back. Airbnb Northeast Press Secretary Liz Debold recently released a statement expressing their disappointment in the “flawed bill” and stated that Airbnb will continue to fight for “hosts, guests, and local small businesses”. Airbnb most recently filed a lawsuit in federal court in November to overturn another Boston short-term rental law passed last summer which would have required hosts to register and a pay a $200 annual fee.

This new law will bring several large changes to Massachusetts, which encompasses several regions especially popular for short-term rentals. Cape Cod, the Berkshires, and Boston are specifically very profitable regions for Airbnb hosts. Under the new law, Boston is permitted to add on an additional 6.5% tax on short-term rentals. Massachusetts will be the first state requiring short-term rental hosts to register with the state. This law has serious benefits for the safety and security of consumers who stay in Airbnbs. Hotel industry groups were especially pushing for the required state registry and were happy with the new law. Lawmakers believe this law will create a more balanced playing field between short-term rentals and traditional hotels, leading towards a more fair and practical system.

Duplex For Vacation Rental in , Bahamas

Vacation rent Price: 270 Per Day

Location: Paradise Island


Property Type: Duplex

Property Details:

Small luxury duplex-appartment fully-furnished on the beach of Paradise Island, close to the famous Atlantis Resort, Bahamas, is available for vacational rent on a daily basis between March 29 until April 19, 2009 (min. stay 3 days) . The appartment has 2 bathrooms, TV, telephon, Access of Wireless Internet services etc.

Selecting a Home Mortgage in present Market

Even in a normal economic environment, getting a mortgage loan can prove to be very taxing on one’s nerves and time. First of all you have to find a house, then you need to fill out a huge loan application, you gather up all the required paperwork, you talk to your loan consultant several times during the process to assure that everything is going ok and the loan may still not be approved.

And that happens when everything is going fine with the economy, not like what’s happening nowadays. Due to the economic crisis mortgage lenders are becoming increasingly restrictive when it comes to doing what they do, the biggest reason being that Fannie Mae and Freddie Mac require governmental financial assistance to stay afloat.

When the largest companies in the field require bailouts this start a trickle-down effect, meaning that Fannie Mae and Freddie Mac will be more restrictive with the mortgages that they purchase and as a result the companies that sell their loans to Fannie and Freddie become more restrictive with their clients.

The government is highly invested in keeping Fannie and Freddie working because if these two companies go down, then the entire mortgage industry breaks down, hence the bailout which ensures that there will still be money available to those who want to purchase a home or refinance their existing loan.

If you find yourself in the market for a loan in Denver or any other city in the U.S., the first thing that you need to do is, even in this current economic troubles, shop around however not the sort of shopping around that you used to do. It used to be that shopping around for a loan meant that you were looking for a low
rate, but now you’re in fact looking for a mortgage company that will approve your loan application. By doing this you’ll become more knowledgeable about the local market and be able to determine what the average rate and closing costs should be for the loan that you’re looking for, and also this will mean that you’ll have a good stock of lenders to apply to if your chosen company doesn’t approve your application.

You should also consider local credit unions and banks, while it is true that they used to have higher rates than most specialized credit companies, the economic downturn has made them lower their rates and offer competitive prices. Even so you’ll still need to qualify for the loan and it may be under stricter guidelines, but going this route may also offer lower fees on your contract, as well as offer you lower fees on savings and checking accounts that you keep with them.

The government wants to ensure, through the bailouts, that Freddie and Fannie are capable of purchasing mortgage loans from mortgage lenders, and even though the mortgage economy is a small fraction of the overall wealth of the United States it is a very important one, this means that there will be more regulation and increased scrutiny all across the board. You’ll still be able to get loans but the important thing that you need to do is to shop around and look at all the alternative ways of financing your home so that you can be sure that your loan will close.

Regardless of what your goal is, whether you’re thinking of buying a home or you want to refinance your current loan, by doing a little bit of research and looking into your local market you’ll get important and maybe even crucial insight into what your choices are, and what you can do with them, so take your time and make the right choice. By Bill Marinelli

Bill marinelli is the owner and operator of Denver’s Paramount Home Loans.