Not even long term
Jet,
We are talking long term here. Wouldn't dream of ever buying in London. In fact property the world over is just a risky proposition at the moment. You are correct, Europe is in rough shape, actually worse off than the US when looking at the true numbers, but don't kid yourself, this place is in massive debt as well. If Abu Dhabi doesn't come to Dubai's aid, it will be uglier than you could ever imagine.
Globally, we are hearing the massive pop of the largest real estate bubble that has ever existed. No where is immune to this. And no "this time will not be different". Some places will fair better than others. I just wouldn't put my money that this is one of those places. 18 - 24 months from now some terrific value will be presented in real estate throughout the world. If Dubai can't even keep up with basic infrastructure i.e. sewage, do you really think true investors will look to this place as a beacon of hope once all the crap has hit the fan? Speculators have had a field day with Dubai. Excellent and good for them.
Years back the allowance option made sense. Not now, doesn't even come close to covering the outlay. Villas have gone up fourfold since they were sold in 2002 but our allowance has risen only 90%. I know the argument of free money from the company, but by taking an additional 10-15K AED a month or more and putting it towards your mortgage, you are putting all your eggs in one basket. I just don't want to bet that in 10 years, my villa here WILL be worth more than a diverisfied portfolio.
Hey, if you are in it or are looking to buy that is your personal choice and option to take. I just wouldn't call it prudent at this time.
Last edited by Craic Ore; 1st Nov 2008 at 10:25.