Rent to buy scheme's

[OMAAbound]

Hi

I've noticed there is a few middle east airlines that are offering a rent to buy scheme instead of a housing allowance. Is there anyone on her that has taken advantage of this or know of anyone that has?

Thanks

[Jetjock330]

Read this now (http://www.emirates247.com/business/economy-finance/expat-mortgage-cap-sends-shockwaves-across-uae-banking-sector-2012-12-31-1.489341) , and this (http://www.bloomberg.com/news/2012-12-30/u-a-e-said-to-cap-mortgages-to-expatriates-at-50-of-home-value.html) and you will see it is even harder to get into now with 50% down for expats, all over the UAE.

Too many runners I suppose!

[Sciolistes]

I don't think that new mortgage rule will last the week.

[Stratosphere6000]

UAE's biggest bank urges rethink on mortgage cap - The National (http://www.thenational.ae/thenationalconversation/industry-insights/property/uaes-biggest-bank-urges-rethink-on-mortgage-cap)

[Payscale]

The due diligence you did yesterday is not worth much worth today. The one you are about to do will change tomorrow.
The people who move the market will be the same as before. The ones who can buy without mortgage. The rule was most likely made to avoid people overextending themselves in their greed for a fast flip.
The banks can either work to change this new rule, which may be difficult, or pass one the lost revenue on the their existing clients by increasing the interest rate.
It has always been an interesting volatile market and will continue to be so.

[Trader]

People are asking double over last year in many of the villa complexes! Asking...not necessarily getting. Rents have been rising as well and I know more than a few who been 'forced' out so the landlords could increase rents.

Housing moves entire economies financially and it is a prudent move to attempt to keep the markets sane and out of speculators hands. Especially in Dubai!

A better move would have been to institute a special tax. If you 'flip' the property with 1 year or 2 years you would be subject to a 50% tax. Keeps the speculators out but allow those who have the very real intention of buying a home to live the ability to do so.

[Sciolistes]

I think lending is getting out of hand in the UAE though, but I don't believe anything can be quickly done without creating a host of unintended and undesirable consequences, which is why most modern governments make changes in much smaller steps.

It probably would have been more sensible to base the deposit requirement on years of good standing as a resident with plenty of experience of borrowing money in the UAE and working for a solid employer.

I suspect the banks will help borrowers get round this by providing the difference with a personal loan. I earn a relative pittance in Dubai yet I have half a mil on tap anytime I want it.

Regardless, this will be overturned with some wishy washy nonsense in the local rags. Anybody noticed how the new rule was quickly re-reported as a planned change?