Emirates Housing Allowance.....
Join Date: Aug 2003
Location: Sandy beach
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There is a renewed interest in opting out as the allowance, because of the major housing correction, has become a very reasonable option. As a family, I would be consider it but still a little wary, but as a single person, there is no doubt it is probably worth having a serious look. Once you opt out, you are out for good, and you could be squeezed like some in 2007- 2008, but to be honest Dubai will likely have an over supply for years to come. The fees and costs with paying on your own are always a consideration and to be honest the less stress you have in this place, the better. There is tremendous comfort in having the company looking after everything, and again, the less stress you have in this place, the better ! Read that again... Many people rode the wave on the property ladder in the boom years, just to be stuck with a very long term investment, with little option but to grin and bare this place-like it or not...as i look in the mirror 
The hassle and expense dealing with the mortgage companies are staggering. The mortgage rates are grossly inflated in the middle of a property implosion. The reason is the lack deposits, risk spread, defaults and market liquidity; high rates are really the last thing this place needs, but it's a sad reality.
If you plan to spend more than 5-7 years, I would look buying or renting. A single person can rent or buy a great two bedroom, in a good location within the allowance. A hot topic among most of the single FO's now.
Having said this..... the less stress the better. Don't forget
The hassle and expense dealing with the mortgage companies are staggering. The mortgage rates are grossly inflated in the middle of a property implosion. The reason is the lack deposits, risk spread, defaults and market liquidity; high rates are really the last thing this place needs, but it's a sad reality.
If you plan to spend more than 5-7 years, I would look buying or renting. A single person can rent or buy a great two bedroom, in a good location within the allowance. A hot topic among most of the single FO's now.
Having said this..... the less stress the better. Don't forget
Join Date: May 2005
Location: Jew-Buy Mate
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A word of caution.
Whilst taking the allowance and buying something is a good use of the opportunities presented and has worked for many of us purely because we were lucky enough to get in at the beginning before prices took off, it was a risk but has paid off so far. The big uncertainty is the EK utilities allowance. There is nothing to say that the company can not or will not reduce it to match market conditions. This will leave you significantly out of pocket if you have taken on a mortgage based on the premise that EK will pay off your bond if you stay long enough.
My advice to any new joiner would be to take the company housing for at least a year, Sit tight and do your research once you have settled in. Even a year might not be enough to suss out exactly how things work here.
Good Luck
My advice to any new joiner would be to take the company housing for at least a year, Sit tight and do your research once you have settled in. Even a year might not be enough to suss out exactly how things work here.
Good Luck
Join Date: Apr 1999
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One other consideration: at the moment you may be planning 10-20 years but circumstances change. It may well happen that after 3 years, 5 years, whatever you or your family may decide that it is time to leave. Owning a property means that may be difficult. Can you sell it? For how much? How quickly?
I've noticed that many guys here find themselves fed up after about 5-7 years. Some leave, some stay.
Others have mentioned the high interest rates, higher downpayment, etc. The other issue is maintenance fees. Most properties have monthly fees. Those fees are controlled by the developer and, since they are not making money selling at the moment those fees have been going up. It is not uncommon to see increases of 50% or more!
This business (and country) are essentially unregulated!! The big firms set policy, have the ear of the government (if not owned by the government) which leaves you and the rest of us at their mercy. This is not me being negative but telling the way it is. The corruption is a fact of life.
As an example, in one of the big developments here the owner will be taking over the maintenance and operation (basically the condo corp). But guess what---the developer designed the initial contract, signed by the buyers, which states that the developers maintenance company is the only company that can contracted.
Anyway, once here you will see what we are writing about.
In the end, based on the research I have done it would take a good 15 years (closer to 20) to make a purchase worth it. For that time frame most people are better off staying in housing!
I've noticed that many guys here find themselves fed up after about 5-7 years. Some leave, some stay.
Others have mentioned the high interest rates, higher downpayment, etc. The other issue is maintenance fees. Most properties have monthly fees. Those fees are controlled by the developer and, since they are not making money selling at the moment those fees have been going up. It is not uncommon to see increases of 50% or more!
This business (and country) are essentially unregulated!! The big firms set policy, have the ear of the government (if not owned by the government) which leaves you and the rest of us at their mercy. This is not me being negative but telling the way it is. The corruption is a fact of life.
As an example, in one of the big developments here the owner will be taking over the maintenance and operation (basically the condo corp). But guess what---the developer designed the initial contract, signed by the buyers, which states that the developers maintenance company is the only company that can contracted.
Anyway, once here you will see what we are writing about.
In the end, based on the research I have done it would take a good 15 years (closer to 20) to make a purchase worth it. For that time frame most people are better off staying in housing!
Join Date: Apr 2005
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All good advice
Having been thru the various cycles definately take the company accom when you join as it makes things easier .. as someone pointed out less stress the better!
I eventually opted out and used the allowance to pay the mortgage on a villa which I saw as EK paying my mortgage ... nice!
The comments about difficulties with banks and developers is so true. Whilst owning I have had to deal with estate agents, banks, developers, housing/land authorities etc. which have all been mildly annoying to totally infuriating. The worst being 3 trips to the land department in Deira to complete 1 transaction
If you come here take the time to decide whether you want to stay and see how life is before committing to house purchases etc. If you do want to leave the less ties you have the better as that process is also long winded and bound in red tape
Good luck.
I eventually opted out and used the allowance to pay the mortgage on a villa which I saw as EK paying my mortgage ... nice!
The comments about difficulties with banks and developers is so true. Whilst owning I have had to deal with estate agents, banks, developers, housing/land authorities etc. which have all been mildly annoying to totally infuriating. The worst being 3 trips to the land department in Deira to complete 1 transaction
If you come here take the time to decide whether you want to stay and see how life is before committing to house purchases etc. If you do want to leave the less ties you have the better as that process is also long winded and bound in red tape
Good luck.
Join Date: Oct 2004
Location: Dubai
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Don't be at all surprised if EK assists as many as possible to take the allowance, and then at some stage in the near future, they'll reduce it significantly.
Ask yourself, why would EK continue to pay above market rates when rents have dropped 40-50% percent? Once you're out, you're out..unable to move back to company accomodation unless there are exceptional circumstances.
I could see EK dropping the allowance by 20-30% in the coming months.
..but then I'm the eternal optimist.
The allowance works for some, but only in certain circumstances. I would certainly not commit myself to a mortgage or tenancy agreement that requires the current full amount to meet my commitments.
Ask yourself, why would EK continue to pay above market rates when rents have dropped 40-50% percent? Once you're out, you're out..unable to move back to company accomodation unless there are exceptional circumstances.
I could see EK dropping the allowance by 20-30% in the coming months.
..but then I'm the eternal optimist.
The allowance works for some, but only in certain circumstances. I would certainly not commit myself to a mortgage or tenancy agreement that requires the current full amount to meet my commitments.
Join Date: Aug 2010
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hi guys,
I am a single F/O joining EK in August. During the accommodation visit, the HR staff showed us the 21st century building, which appeared to be a bit cramped. From the previous posts, it seems like they are the not-so-nice F/O apartments.
Would some kind soul have more info on the other sites where the F/Os stay. Are all the apartments with windows that can't be opened? I guess windows which open are not much help during the summer, but come november, some "fresh" air might not be a bad idea. Any of them have a sit-outs outs at all.
Are daily needs within walking distance from most of these apartments? Thanks all for any info at all.
WF
I am a single F/O joining EK in August. During the accommodation visit, the HR staff showed us the 21st century building, which appeared to be a bit cramped. From the previous posts, it seems like they are the not-so-nice F/O apartments.
Would some kind soul have more info on the other sites where the F/Os stay. Are all the apartments with windows that can't be opened? I guess windows which open are not much help during the summer, but come november, some "fresh" air might not be a bad idea. Any of them have a sit-outs outs at all.
Are daily needs within walking distance from most of these apartments? Thanks all for any info at all.
WF
Join Date: Apr 2003
Location: UAE
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Wingflex, 21st Century probably isn't the greatest tower block. A lot of the F/O accommodation is in Al Barsha which is a bit away from the city centre but very handy for Mall of the Emirates. Also good for the restaurants/beaches at the Marina.
Most of the apartments for F/Os, wherever they may be, have windows that open and balconies. However, you get what you are given and if you happen to end up with welded shut windows, though!
My suggestion, take the allowance and rent a nice big one bed apartment for about 55,000 a year. Or a two bed for about 75,000. You can keep the change.
Most of the apartments for F/Os, wherever they may be, have windows that open and balconies. However, you get what you are given and if you happen to end up with welded shut windows, though!
My suggestion, take the allowance and rent a nice big one bed apartment for about 55,000 a year. Or a two bed for about 75,000. You can keep the change.
Join Date: Sep 2006
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relocate to RAK, we need more pilots here
Seriously, the rental prices are SOOOOO low, and the travel time is 1hr.
look up du Bizzle and see for your self.
glf
look up du Bizzle and see for your self.
glf
Join Date: Aug 2010
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Thanks guy for the info. I am hoping to get an apartment with some open windows and a balcony. Taking up my own apartment seems like a good option, but i will first need to live there for a bit to decide. Cheers !
WF
WF
Join Date: May 2010
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Hi guys, need some info on housing for married with kids f/os. As i understood it is either in Al Waha villas or in Ceder Villas. Any info on how many bedrooms, any garden? Any good schools in the vicinity of those?
Join Date: Apr 2003
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Well, you might end up in Al Waha, or Silicon Oasis (Cedar Villas) as that is where most of the new accommodation is. On the other hand you might end up in Satwa, Jumeira or anywhere else in Dubai. You will be put where the company has space and won't have a choice so I wouldn't start stressing about schools until you know where you will be living.
If you want to see some typical villas try Dubai Silicon Oasis Community
If you want to see some typical villas try Dubai Silicon Oasis Community
Back to the top...
Starting in a few weeks time, and wondering if anyone can provide more names of the buildings that married F/O's are put in.
It seems like Century is one worth avoiding if at all possible.
Cheers
It seems like Century is one worth avoiding if at all possible.
Cheers
I am not sure that next century will be much different. The local paper shows the year as 1432, I would wait until the 1960s if I had a chance as they seemed like a scream.
The Don
The Don