Chippin' in Schnowzer.
Just to add some recent info:
In todays GulfNews the Governor of the United Arab Emirates Central Bank said "We have come to the conclusion, that the inflation problem does not lie with the peg against the US dollar". - Now i know that the gag writers in Hollywood are on strike, but with stuff like that they are not missed! That's the way we are "lead" around here ... by morons.
Conclusion: Inflation + x-ch rates will remain a huge problem in the mid term.
Additional problem for property owners in spe:
The rent commitee will introduce minimum and maximum rents per location. One of their local talent will show up and evaluate your house .... You might end up buying property you will not be able to rent out to cover the mortgage. And this because unlike in the civilised world, where saving rates and mortgage rates fluctuate more or less conjunctively, here the savings rate went down with the $ lead rent-rate (almost 2% to ~3.5%), HOWEVER the mortgage rate didn't move a sepc (~7%). Logically as there is no competition to the few lenders, and guess who they are....
Conclusion: Topping up the dwindling salary with investment in property will be a exercise at the mercy of mortgage lenders and new the rent commitee. Do you trust them?
Again, it's not bad around here, compared to down the road. But i am trying to make not only the decent living i have right now, undoubtedly, but i am looking ahead and see a not so bright retirement, if things stay as they are. On the other hand i'd like to stay here, at least for the mid term. That is my dilemma and that is why i am following events as close as my schedule allows. For the very close future it still works, but the trend shows, that by mid 2009 some of us (easy to see where we're from) will start seeing some "minus" on the spreadsheet. I totally agree that some won't. Guess they will join, but remember: Markets and exchange rates fluctuate in both directions!!
Last edited by GMDS; 5th Jan 2008 at 04:34.