EK Utility Allowance 6 years ago and now a comparison

[flareflyer]

Can somebody tell me roughly what is the cost to run an apartment of around 150 sqm in a tower in dubai marina?

I mean, electricity, water, maintenance fees and so on.....

Thanks

Flare

[uplock]

Table below published in todays Emirates Today Newspaper from Asteco a reputable Real Estate Agency in Dubai.

3 bedroom apartment Not a Villa average to Rent in Dubai last Qtr 2006 Year

SZ Rd 190,000 AED
The Greens 175,000 AED
Satwa 145,000 AED
Garhoud 150,000 AED
The Marina 200,000 AED

http://i8.tinypic.com/34q3axe.jpg

[flareflyer]

Thanks Uplock,

but i was meaning the cost of running the apartment. I mean, you own the apartment, how much do you spend in electricity, water, maintenance fees and other expenses.

Flare

[BigGeordie]

The cost of utilities will obviously vary quite a bit depending on how many people and pets are living in it. I live with one other person in a two bed apartment with central chiller (paying for your own a/c in the summer could double you electricity bills). Our monthly DEWA bill is almost always less than 200Dhs for both water and electricity.

Contents insurance is about 1300Dhs a year.

Maintenance charge varies with the tower, but it is usually calculated per square foot and you can reckon on 10-12Dhs per square foot per year. Tends to go up every year!

Hope that helps a bit.

[uplock]

It is worth comparing that the intention 6 years ago was that the UA clearly coverd Rent, Municipality tax,electricity,water,sewaerage,cooking gas, maintenance,refurbishment and the 5% real estate agents commission.

Fast Forward 6 years to 2007 and the allowance for a P2 (Captain ) is just under 130,000 AED. Rents have increased way over 100% in the past 6 years and our UA has increased around 33 % and does not factor in what the company said it would cover The Annual Utility Allowance includes provisions for rent, Municipality tax, utilities (electricity, water, sewerage, cooking gas), maintenance, refurbishment and estate agents commission

Here is what Emirates Policy Governing Utility Allowance and Changes of Accommodation read 6 years ago in 2001Section 3. Utility Allowance levels and reviews

The Annual Utility Allowance includes provisions for rent, Municipality tax, utilities (electricity, water, sewerage, cooking gas), maintenance, refurbishment and estate agents commission. The level of allowances for each grade are indicated below
P1 = AED 85,020 pa
P2 = AED 95,040 pa

The Allowance Levels will be in force for a period of 12 months and will be reviewed on a 12 month cycle every July

So before I get jumped on and quoted that once you move out you can never come back please factor what the company policy was 6 years ago, what EK wrote in writing and oh yeah this paragraph 6 UAE National Staff
UAE national employees will have the right to surrender the UA and Opt into Company provided accommodation. In such cases existing Company policies pertaining to the allocation and furnishing of accommodation, furnishing and refurbishment allowances will apply
http://i8.tinypic.com/34q3axe.jpg

[Gulf News]

In addition to DEWA(electricity & water) and service fees to the property management company or developer you will have to pay municipality tax monthly with your utilities bill. It is calculated on the purchase price of the property and you are required to submit a copy of your agreement of sale to the authorities. I don't know thje exact calculation but I can give you a ball park. On a 2.5 million DHS property the municipal tax is about DHS 1100 monthly.

[HW]

One of the pilots (UK chap) has been allowed back in to company accom after selling his place out at the Ranches ... so guess wot's good for the goose is ...

[Backwater]

Given the above and other economies pursued by our management you would not be surprised to read in the latest Safar that revenue per employee has DOUBLED since 2000.

[fatbus]

I feel sorry for the ones that tried to second guess the system.NOT
Good to hear someone being allowed back into company housing

[Wizofoz]

Uplock,

Now do a comparison between what mortgage the utility allowance would have paid for six years ago, and what someone who elected to buy then would have made by now.

Did anyone really need to be told that investing in property was a better bet then renting, or that staying in company accomodation was the lowest risk option?

[flareflyer]

Thanks a lot for the answers, i am looking to buy a 2 or 3 bed apartment in the jumeirah lakes towers. The cost of the property is around 1,5 to 1,7 million.
I will wait until may to see how much the allowance will increase and then i will take my decision.

Flare

[uplock]

Wizofoz six years ago you could not buy property, that's a fact. Six years ago Emirates had trouble with accommodation and finding houses for Pilots, this is why the UA was increased where it was viable to rent. Previous to this point the UA was deliberately kept low to discourage you from moving out of company accommodation. It also provided good cash flow for the Land Lords.

Buying Property and having access to a local mortgage is a recent addition to Dubai it was not available 6 years ago and when the product did become available had lots of restrictions, not like the product in the land of OZ.

My point is that EK clearly stated that the UA was to cover rent as well as other costings, this would be lost amongst those who have joined since then which is why I quoted word for word the company policy.

Were you aware that the Policy did Allow UAE Nationals to opt to take the Allowance then later on return to take advantage of all benefits?

Mr Edd takes the view that it is your own fault your outside company accomadation when the facts are that Emirates Policy painted a very different picture on how the UA was justified. With the continued changing of the guard and every one feathering their own nests the UA has not been reviewed seriously for years.

Hopefully this will change however given the response to date the odds are stacked against us.

[max AB]

Uplock, whilst I have some sypathy for those who are caught in the rent spiral, I think you have read a bit to much into the wording of the allowance. To make a provision for rent, elec, water etc doesn't mean it is to cover these 100%. It means that they were all considered when the allowance was calculated, then probabley "factored" as EK likes to do. I know some guys had little option but to take the allowance due to crap villas etc but I remember there being no shortage of guys eager to tell all how much extra money they were making by renting a "cheap" apartment. Imagine if rents plummeted, would you complain if EK lowered the allowance? You can't have it both ways.

[GMDS]

Basically the name should be changed. It is NOT a utility allowance, because it does not ALLOW you to get out of company accomodation without paying a huge chunk out of your own pocket. It is a utility CONTRIBUTION to exposing yourself to the wild middle east of speculators. The contribution will only be bearable to those who have bought their own place up to probably two years ago.
For newbee's: Don't trust anything you've been said or shown during application. Look at what they give you when you arrive. If you don't like it, it's too late.
Wanna take the risk?:E

[atiuta]

Please!!!

What a load of bollocks. Are you trying to wind people up or are you seriously trying to make a case out of the UA or lack of it? There was never any doubt in my mind regarding the limitations of the UA and Emirates made it crystal clear what it was and wasn't.

Can't move back in? Shame.

UAE Nationals can move back in? Who cares! Truth be known, their whole contract is probably a whole bunch better than ours but nothing's going to change unless you become a UAE citizen. To be honest, that whole area is one that is treated with a degree of respect by all. They don't discuss it with us, and we don't ask. Why? Because we happen to be on their turf and that's the way they do it. Don't like it? Then become an expat elsewhere. Like it or not we're just the hired hands working for a paycheck, when the harvest is in we'll be gone.

[uplock]

atiuta silly me to believe Emirates Policy and what was said and written.....Trouble is Emirates DID make it crystal clear just like they are now again with the present review.

6 years UA increased around 35 % works out as a 5 % increase every year. Even Stevie Wonder could see this needs adjustment to a realistic level that is unless you are in company accomadation or sit higher up the Palm Tree and dont' feel the need to shair the love...

[flareflyer]

Any rumour about the expected increase of the UA?

[CAYNINE]

Well not everyone opted out of Company Accom by choice, when I started we were put in a tower with cabin crew, not such a bad thing you may say, but the reality is there is a percentage of CC that either don't give a rats arse about others or are just plain arrogant or more than likely dumb with repsect to showing consideration to other tenants. i.e....can't stay there anymore.
Soooo.... lets ask Accom department for something different, sorry only thing we have is a nice place by the cement factory.... or single pilot huh?....well sorry buddy no accom available.
Only choice is to move out.
2 years later, paying out of my pocket, my decison but not my choice.
Point is not everyone left Comp Accom to make a buck.....I just wanted some sleep!!!!

[ShockWave]

atiuta,
you appear to think that making posts about our current salary and possible changes is ok but have a problem when anyone else comments on the UA.
Just because you have not taken the UA does not make the complaints of others who have unjustified. Surely you are able to understand at least that much. Or am I jumping to conclusions?:=

[Gulfstreamaviator]

This thread has provided much needed information for those of us in sandy bottom, that are not EK.

Thank you very much.

The Elec costs wrt to a/c is sobering. bring back "the fan wallah."

Glf