Etihad 'rent to buy' housing scheme

[Ajax]

Hi all

Can anyone provide any further details of the Etihad 'rent to buy' scheme as trumpeted on their website recently?

Is it just a specially negotiated mortgage rate, or is it applicable only to certain properties? What's so 'rent to buy' about it anyway?

[FlyingCroc]

I was under the impression that Etihad will provide you the house free and after 10 years service it is yours?

[boeing-man]

Also if you do sell the unit before it's demolished (targeted to be around 25 years from completion date) the banks want 3% as settlement. :ugh:

PS : Housing loans run for 25 years max.

[Bredrin]

I must have missed something, Have we been told about a RENT to buy scheme? I don't think so, all that has been said is that we have an arrangement for prefferential treatment at a couple of banks.

There is NO RENT TO BUY SCHEME. Only deception into attending an Aldar Group marketing presentation.

[noflare]

Someone in HR is really taking the p### with this rent to buy, its a complete waste of time so please dont even consider it if you are looking to join EY.

If you want to buy in AUH you can find far better deals on the open market.
:mad:

[Vorsicht]

This is an great opportunity for anyone new to the ME. It is not often we get a chance to point out, without bias, how ME companies misrepresent what they offer.
This is a classic case of portraying something to be what it is not. It doesn't matter if it is EY, EK or QR. Or for that matter whether it is EMAAR, Nakheel or Etisalat. It is the middle east.

I'm sure it happens elsewhere as well, but this is a perfect opportunity to point out that you should treat anything these company's tell you with a healthy amount of cynicism.

The old investing adage "if it seems to good to be true, it probably is" can come in quite handy in the sandpit.

V

[Mustapha Rex]

What do you expect from a combination of pirates and prisoners???
Until a few years ago you could not even own land let alone an appartment, think it will be different now?
They know the meek will keep flocking at the prospect of treasure troves.
What were you expecting a welcome with tea and crumpets?
You get what you pay for habibi. This management combined is the descration of the industry to say litlle of it. Losses and fatalities and you still want to buy houses?
They've got you by the balls!
"nough said!

[djuggler]

Okay, taking part of this "rent to buy" scheme may not seem a healthy option after all. So tell me guys, is it worth taking the company provided accomodation in lieu of the housing allowance? If so, can a new joiner get a villa? And where exactly are these company accomodations located?

[sandblasted]

djuggler,the company provided accomodation is adequate short term if you don't have too many kids, the villa project is in the middle of the desert in a compound, poorly finished etc. If you want a nice Villa, good location near Abu dhabi expect to pay at least 40000 dhs above the housing allowance, :ok:

[GTR-34]

Djuggler,
Its better to take company accomodation and rough it out for a while unless you are prepared to fork out more $$ for villas which rents will increase 7% every year!! and your housing allowance stays the same!
Its your choice...:) and also with the housing allowance as it is, you can't even afford a decent 3 bedroom apartment with parking.:ugh:

[djuggler]

All points taken! Safe flight guys.

[neilb767]

boeing-man,

Where do u get this info that the life of a villa is only 25 yrs ??

Are you referring to the structual integrety of the villa ?

[Mr. Frodo]

I think boeing-man has a point there. An apartment building, like any other high-rise buildings, need to be demolished after a certain number of years due to old age, and yes, because of its structural intergrity. I'm not sure though about villas, but as far as I know, no building is built to last a lifetime.

Assuming then that a building's life expectancy is only 25 years as mr. boeing-man so claims, it is therefore illogical to keep on paying for a property for 25 years only to be demolished after you have completed the payment. You lose your property, you lose all your money, and still has to fork out a 3% settlement. That leaves the owner empty handed and on the 'red'. So who wins and who loses? Go figure.

Mr. Frodo

[Togalk]

The 25 year life expectancy came from the Aldar guy himself.
"No building is built to last a lifetime"
There are buildings in Europe that are hundreds of years old.

[Mr. Frodo]

I know there are hundred year old buildings in Europe, and even thousand year old buildings and monuments in other parts of the world. Sorry for the confusion, but I was actually referring to these residential buildings wherein the structural degradation that takes place as time goes by necessitates that they be demolished after a certain number of years. Harsh wordly elements such as fire, earthquake and the likes can significantly affect a building's structural safety, thereby reducing its life expectancy.

We buy properties for several reasons. For one, we buy a house so that we will have something to live in comfortably and something that we can call our own. We also buy property because we expect to have a high return of investment from our hard earned dirhams and fils, and in the case here of EY's rent to buy scheme, this is what exactly what the pilots were expecting. As expatriates we want to keep our expenses to the minimum, and buying a property which you can sell later on when you leave the country sounded like a good investment. But if for some reason you know that the property you are investing in will go down in rubbles after you have completed the payment, then where is the rationale in that?

Your answer please.

Mr. Frodo

[ironbutt57]

you guys are all high on something.....buy in Dubai and get a proper return on your investment...

[alghazal]

Yeah right, then pay the toll and die on Dxb's roads..... thanks a lot, smart ............ I leave it to you
And as far as investments are concerned, Dxb has the same unfair and unsafe investments opportunities as Auh,though starting prices are quite high, ask the guys living in the greens, overwhelmed by local taxes .

The guys here are just asking for a decent place to live with their families at a decent price, that won't compromise their , non company provided , provident fund. If it's too demanding........ Well , sorry to be alive.....

We won't get anything , but we won't be the only ones.... taxiing at a man's walking speed, carrying 5 tons of extra fuel, but for the sake and safety and performance of course.... , no captain's discretion under any circumstance, treating the passengers as ETD wonder so called managers do......:ugh:

And what about the new passengers greating : Welcome aboard Etihad Airways, the most expensive Low cost carrier of the Middle East.......
That can make it.....

Breaking News: Air Arabia to be renamed as Etihad Express, Yeah mite...

[alghazal]

Or better.... Etihad to be Air Arabia Express, no offense guys.......

[5man]

Wow. So much moans and groans on the housing scheme surely somebody must have told the boys at the top that this rent to buy scheme is somewhat close to scam. Come on who would really jump into it?????? :=

[sidestick driver]

Too sharp alghazal...very good!

[Mr. Frodo]

you guys are all high on something.....buy in Dubai and get a proper return on your investment...

Nope. EY's "rent to buy" scheme financed by NBAD is only applicable in the emirate of Abu Dhabi

[neilb767]

Had a chat with a developor about the life expectancy of building in the UAE.

Apparently thouse built in the 1950-1980's had a life expecancy of 40 yrs, some are 45yrs + and still standing strong.

Todays buildings have a design life of 80 yrs.....

Buyer beware. ....