ek housing allowance for mortgage?

[BIKKERDENNAH]

I would have to agree with mensa on this one.

I bought a 4 bedroom villa 3 years ago and the price at that time was right and made sense. A 9500dhs mortgage over 20 years and a place that has over doubled in value!! Housing allowance now 11200 dhs per month for a captain. So the maths adds up. However to get anything near company accom standard now especially if you are entitled to a villa you would be looking at least 3 million dhs to get something comparable and if you have not got a substantial chunk of cash to slap down as a deposit the 10000 dhs fo allowance will be just a part payment to the mortgage which at the moment over 20 years with 15 percent down and financing all the premium or 50 percent of it, you will be facing mortgage payments of 16000 dhs + and on top of that approx 2000dhs per month utilities and another 1000 dhs per month in service/management charges lets not get into the HASSLE factor. capital return is still there for the next 2 to 4 years but NOTHING like it was 4 years ago.

BUT if you are single, you can snap up 2 bedroom apartments for a lot less and maybe get the budget down to the company allowance but keep in mind that there is now a glut of apartments on the market now that jumerah beach residence and the palm apartments are now complete so capital growth is not there in fact the prices are dropping slightly and rental yields are not as high as they were. On a positive note if you buy and use company allowance to pay for most of the mortgage it cannot be a bad thing!!

Spend a year in company accom have a good look and do your due diligence then decide if you want to buy,thats my advice. i waited two years to make a decision.

Hope this helps