Safe as villas; How well insulated is DXB?
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bubble
Mensa,
Which bubble has burst? I also own property in Dubai. Friends of mine are looking for an object in my area. They found out that unless you are prepared to commit on the spot and leave a deposit, the villa will be gone the next day.
As Dubai is bucking the global trend of suffering and misery, I believe the bubble will eventually burst, but not just yet.
Which bubble has burst? I also own property in Dubai. Friends of mine are looking for an object in my area. They found out that unless you are prepared to commit on the spot and leave a deposit, the villa will be gone the next day.
As Dubai is bucking the global trend of suffering and misery, I believe the bubble will eventually burst, but not just yet.
Join Date: May 2005
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Mach dude,
I actually meant what you said. Got my verb tense mixed up, haha. The bubble bursting, or at least a decline in prices will be inevitable IMO. If it does happen, I believe the financial crisis will be the reason it happens sooner rather than later.
I did not mean to suggest that the bubble has already burst, although I admit there are some ominous signs.
I actually meant what you said. Got my verb tense mixed up, haha. The bubble bursting, or at least a decline in prices will be inevitable IMO. If it does happen, I believe the financial crisis will be the reason it happens sooner rather than later.
I did not mean to suggest that the bubble has already burst, although I admit there are some ominous signs.
Join Date: Sep 2004
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Empty houses
I always wondered who will ever live in these ugly empty apartments at Jumeira Beach. I mean why would you invest in sand if you can invest in Europe or the USA? You will get a better value in a much nicer surrounding. I know some people made massive profits but now it seems way too risky to buy something in the sandpit.
Join Date: Oct 2007
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"Trillion of dollars in reserve"...
There is only approximately 680 billion dollars in real money,everything else is,well,a joke...
And, by the way,that 680 billion is already spent
Sorry guys,party is over
There is only approximately 680 billion dollars in real money,everything else is,well,a joke...
And, by the way,that 680 billion is already spent
Sorry guys,party is over
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Join Date: Feb 2006
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Friend of mine (family) who has bought a villa in Jumeirah Village was just informed from his developer that they are "unable to complete their project at the price which it was sold" to him, so now he has to wait 60 days in which the developer will either:
1. Insh'allah Return his 600,000dhs + deposit and installment without any interest; or
2. Give him a new cost for his villa, which means he has to give more money into something in which his confidence/wallet has already taken a hit;
OR what I pray for his sake doesn't happen.... 60 days pass, he hears nothing, and his phone calls to them are met with a friendly Arabic then English female voice telling him the line he is calling is not in service.
I believe, and it is completely my personal opinion, that the proverbial "ish" is inches away from hitting the proverbial fan.
1. Insh'allah Return his 600,000dhs + deposit and installment without any interest; or
2. Give him a new cost for his villa, which means he has to give more money into something in which his confidence/wallet has already taken a hit;
OR what I pray for his sake doesn't happen.... 60 days pass, he hears nothing, and his phone calls to them are met with a friendly Arabic then English female voice telling him the line he is calling is not in service.
I believe, and it is completely my personal opinion, that the proverbial "ish" is inches away from hitting the proverbial fan.
Join Date: Feb 2007
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Questionnaire for all the mighty prophets on this thread:
1. Where would you put your hard earned cash during today’s critical times:
a. Into a bank
b. Buy Emaar shares
c. Buy a Villa off plan in the Gulf
d. Under your pillow
2. Where would you buy property right now:
a. USA
b. Morocco
c. UAE
d. Kazakhstan
3. Where would you borrow money for a mortgage or a car today:
a. Tamweel/Amlak
b. Your friendly neighbourhood pawn shop
c. Barbara Streisand, if you promise to marry her
d. Russian Mafia
Now find the absolute no-go in each question!
Concerning the other answers, one is as good as the other …..
1. Where would you put your hard earned cash during today’s critical times:
a. Into a bank
b. Buy Emaar shares
c. Buy a Villa off plan in the Gulf
d. Under your pillow
2. Where would you buy property right now:
a. USA
b. Morocco
c. UAE
d. Kazakhstan
3. Where would you borrow money for a mortgage or a car today:
a. Tamweel/Amlak
b. Your friendly neighbourhood pawn shop
c. Barbara Streisand, if you promise to marry her
d. Russian Mafia
Now find the absolute no-go in each question!
Concerning the other answers, one is as good as the other …..
Join Date: Mar 2005
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FlyingCrock,
I'm guessing you didn't buy property in Dubai 4 years ago and thus aren't sitting on a small fortune - hence the bitterness. But c'mon dude, give the boys that had a bit of foresight/balls/blind faith a bit of credit - where else would you have made 300% in that time frame?
P.S. A property, regardless of how well or badly built, regardless of whether it has a view or not - is a commodity, like everything else traded these days. It's just a question of what price people are willing to attach to that commodity.
I'm guessing you didn't buy property in Dubai 4 years ago and thus aren't sitting on a small fortune - hence the bitterness. But c'mon dude, give the boys that had a bit of foresight/balls/blind faith a bit of credit - where else would you have made 300% in that time frame?
P.S. A property, regardless of how well or badly built, regardless of whether it has a view or not - is a commodity, like everything else traded these days. It's just a question of what price people are willing to attach to that commodity.
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Hard to discern satyre from the message?
As journeyman said, property is real. You can use it yourself and it is far less bound to brake down or be crashed as other commodities, like cars, electronics etc. Furthermore it will not run away from you accompanied by a lot of cash and the kids. You can weather the storm, as our buddies from CP did in 97. The prices are way back where they were in HKG.
The value of property may fall considerably in Dubai. But shares do the same, today you can wipe your a..e with some. Cash may also crash on x-change rate or get lost in some banks or funds. A house at least should stay yours to live in and for the moment EK gives you cash if you do so. Take the money and try 6% of lending rate, with 10% of own injection and you'll end up with:
Investment 3 mio, own inject. 300000, ann. rate 162000
Investment 4 mio, own inject. 400000, ann. rate 216000
With 3 mio, you will have EK covering almost all the cost, incl. water+elect. A 3 bedroom townhouse is available between 3 and 4 million even today.
I'm not saying you have to buy, it might be risky. It's all about location, location, location. But even if the prices stumble 20% (quite pessimistic), they will eventually rise up to the initial investment and beyond. The global financial crisis will pass sooner or later and if you can wait, real estate has proven to be quite stable in a 5 to 7 year range.
Just my five ...
As journeyman said, property is real. You can use it yourself and it is far less bound to brake down or be crashed as other commodities, like cars, electronics etc. Furthermore it will not run away from you accompanied by a lot of cash and the kids. You can weather the storm, as our buddies from CP did in 97. The prices are way back where they were in HKG.
The value of property may fall considerably in Dubai. But shares do the same, today you can wipe your a..e with some. Cash may also crash on x-change rate or get lost in some banks or funds. A house at least should stay yours to live in and for the moment EK gives you cash if you do so. Take the money and try 6% of lending rate, with 10% of own injection and you'll end up with:
Investment 3 mio, own inject. 300000, ann. rate 162000
Investment 4 mio, own inject. 400000, ann. rate 216000
With 3 mio, you will have EK covering almost all the cost, incl. water+elect. A 3 bedroom townhouse is available between 3 and 4 million even today.
I'm not saying you have to buy, it might be risky. It's all about location, location, location. But even if the prices stumble 20% (quite pessimistic), they will eventually rise up to the initial investment and beyond. The global financial crisis will pass sooner or later and if you can wait, real estate has proven to be quite stable in a 5 to 7 year range.
Just my five ...
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GMDS- I agree with you completely, but only if you own a home in which you live. Most of the people I know that are invested in property do not live it (if it is even ready yet) and have bought with the though of speculating. I would say that most property ownership in the Dubai falls into this category.
For these individuals the game is getting dangerous. Quite a few people made some good money (that is if they have sold) and good for them them. But like everything else it is about managing risk. Buying property now (speculatively) is a much higher risk investment now then it has been and the potential return is much lower. Trying to compare it to the last few years is not a fair comparison.
For these individuals the game is getting dangerous. Quite a few people made some good money (that is if they have sold) and good for them them. But like everything else it is about managing risk. Buying property now (speculatively) is a much higher risk investment now then it has been and the potential return is much lower. Trying to compare it to the last few years is not a fair comparison.
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The only way anyone has made any money out of this market is if they have sold... if they still have property as investments then it is all only virtual profit.
The reason for starting this thread is that are many new joiners who are being caught up in the hype of the past few years and spin of 40-60% promises that may never be realised. The situation has and is changing. DXB and the UAE are not insulated by the global downturn, much as they would have us think otherwise, and the various pyramids are looking very precarious.
The trick with stocks and shares has always been not when to buy, but when to sell...
The reason for starting this thread is that are many new joiners who are being caught up in the hype of the past few years and spin of 40-60% promises that may never be realised. The situation has and is changing. DXB and the UAE are not insulated by the global downturn, much as they would have us think otherwise, and the various pyramids are looking very precarious.
The trick with stocks and shares has always been not when to buy, but when to sell...
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Property has always been cyclic - in some years you make a paper loss, in others a paper profit.
But over the long term I've found it to be a sound investment
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Journeyman ,
Glad you are happy with your purchase , but bandying figures like 300% gain is a bit foolish when the world economy is going pear-shaped and the last thing to crash will be the Dubai property market . If you can find someone TODAY who will give you 4 times the price you paid then I will apologise , but please let me know. I had people in UK telling me back in 91-92 that my house had more than doubled in 4 years , but I insisted that no-one had knocked on my door and offered even 50% more ,and the UK fell over shortly after and my airline went bust etc etc , so learn not to listen to the press ( especially in UAE ) and certainly not to an Estate Agent - now second on the hitlist after Financial advisors and ahead of lawyers.
Get real , keep yr head down and don't rely on foolish figures.
Glad you are happy with your purchase , but bandying figures like 300% gain is a bit foolish when the world economy is going pear-shaped and the last thing to crash will be the Dubai property market . If you can find someone TODAY who will give you 4 times the price you paid then I will apologise , but please let me know. I had people in UK telling me back in 91-92 that my house had more than doubled in 4 years , but I insisted that no-one had knocked on my door and offered even 50% more ,and the UK fell over shortly after and my airline went bust etc etc , so learn not to listen to the press ( especially in UAE ) and certainly not to an Estate Agent - now second on the hitlist after Financial advisors and ahead of lawyers.
Get real , keep yr head down and don't rely on foolish figures.
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kotakota,
I found somebody last month, but you can apologize anyway. More accurately though, it was a 287% profit but believe me, there are some of our colleagues out there who are going to make/have made over 400% over the same period.
FlyingCroc,
Seeing as though it is going to cost you about three-and-a-half times more $s than you didn't have a while ago, I guess the answer is no, I wouldn't buy here now. Why don't you look at the States, or even Europe? The Euro is down to 5 and the Pound about 6.4 - might be worth a flutter.
I found somebody last month, but you can apologize anyway. More accurately though, it was a 287% profit but believe me, there are some of our colleagues out there who are going to make/have made over 400% over the same period.
FlyingCroc,
Seeing as though it is going to cost you about three-and-a-half times more $s than you didn't have a while ago, I guess the answer is no, I wouldn't buy here now. Why don't you look at the States, or even Europe? The Euro is down to 5 and the Pound about 6.4 - might be worth a flutter.
Last edited by journeyman; 14th Oct 2008 at 08:18.
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Oh Yeaaahh - 300 % gain in just a couple of years - with 90-ish percent financing - or even a brand new Shaguar parked upon initial payment in Your driveway - bla-di-bla 
Do you really assume ANYbody really believes in this propaganda b/s ??
Sorry - but at the Choitram at Umm Suquiem is the same villa in the springs desperately advertised 4Sale since more than 6-8 weeks now- and still on the market (as i checked personally recently myself); and the gain looks more like 80-90 % over 3 years to me , if i do the math!
If you subtract the 30-40% inflation in that period plus the financing costs & transfer costs you come down to "realistic figure" ..
But if you really want to see where the over-valued & over-rated Real-Estate market in this dreadful place in the sandpit is heading in the near future: just look at the EMAAR & NAKHEEL shares which are in freefall since months already ...
Do you really assume ANYbody really believes in this propaganda b/s ??
Sorry - but at the Choitram at Umm Suquiem is the same villa in the springs desperately advertised 4Sale since more than 6-8 weeks now- and still on the market (as i checked personally recently myself); and the gain looks more like 80-90 % over 3 years to me , if i do the math!
If you subtract the 30-40% inflation in that period plus the financing costs & transfer costs you come down to "realistic figure" ..
But if you really want to see where the over-valued & over-rated Real-Estate market in this dreadful place in the sandpit is heading in the near future: just look at the EMAAR & NAKHEEL shares which are in freefall since months already ...
Last edited by Cyberbird; 14th Oct 2008 at 21:30.