Originally Posted by
Craic Ore
Jet,
It's all about ones opinion and finding value. As stated, the other option is to invest outside of Dubai; just because your job is here, doesn't mean you must invest in the place.
If you are with EK, with prices where they are now, you're much better to stay in company provided accommodation than stretch yourself in these market conditions.
Sorry Craic but that doesn't make much financial sense to me.
Given the choice between buying an apartment in Dubai or buying in London - well Dubai is a better deal all round.
If you buy in London (or anywhere else outside the UAE) then you are spending your earned income to finance the transaction. By opting out of EK accommodation then you are using EK's money to finance some or all of the transaction and your earned income stays safely in the bank. Yes I know that you could rent out a property in London but in the present circumstances buying property for rental income is not such a great idea as many have already found.
Property should be treated as a long term investment and over the long term it has proven to be a decent investment - I do agree that you shouldn't get severely leveraged - but that applies to any market not just the UAE.
Given the oncoming worldwide recession that is just about to hit hard then the place to be surely is in a country that has net fiscal surplus - not Trillions in debt already before the recession actually starts, which will have to be paid for sometime and the only way is by increasing taxes.
In todays Business24/7, Dr Gerard Leyons, Chief Economist, Group Head of Global Research, Standard Chartered Bank:
"He said the region that looked the most vulnerable in the crisis was Europe with its large current account deficits, dependence on foreign money for financing, high levels of debt, rapid credit growth and badly exposed banking sectors."