30 percent deposit
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Unless you really need to put a roof over your head, be smart, hang onto your cash and perhaps you could buy something with some real value....like lakeside in the mountains, a proper view, and hey, maybe you will be lucky enough to have reliable sewage treatment and less traffic. What a concept!
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I'm not sure that HKG can be an accurate indicator when it comes to the UAE. Historically and politically it had far greater importance than the UAE has now. The UAE might pretend to be the gateway to the Middle East but it is not the only one.
HKG had a property boom and correction but fundamentally it had/has huge geopolitical importance wrt China and had a mature, well established business and industrial sector. The UAE? It wants to be a shopping and tourism hub.
Even if property moderates the 15-20% mark... who can afford to buy even at these prices? The speculators will have moved on so no massive profit to be had. Those who live and work here would need a much bigger correction to consider buying in.
Another interesting link...
Dubai property - MoneyWeek
HKG had a property boom and correction but fundamentally it had/has huge geopolitical importance wrt China and had a mature, well established business and industrial sector. The UAE? It wants to be a shopping and tourism hub.
Even if property moderates the 15-20% mark... who can afford to buy even at these prices? The speculators will have moved on so no massive profit to be had. Those who live and work here would need a much bigger correction to consider buying in.
Another interesting link...
Dubai property - MoneyWeek
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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 accomodation than stretch yourself in these market conditions. If you got in early, good for you, you've reduced a lot of the downside risk.
For now, just ask around and hear what is going on. Most of my friends are in the market and have done well, but as transactions almost halted, an adjustment of price is upon us. Let's just hope it's minor and doesn't wipe out those who are severely leveraged in this market.
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 accomodation than stretch yourself in these market conditions. If you got in early, good for you, you've reduced a lot of the downside risk.
For now, just ask around and hear what is going on. Most of my friends are in the market and have done well, but as transactions almost halted, an adjustment of price is upon us. Let's just hope it's minor and doesn't wipe out those who are severely leveraged in this market.
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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.
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.
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."
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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.
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.
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However I think you'll find that APARTMENTS are far better bets than VILLAS compared to the rest of your portfolio in 10 years time... Especially in high demand areas such as the Marina and JLT.. I know JBR is half empty but the place really is a modern day ghetto
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I dont think JBR is as bad as that..
Yesterday afternoon I walked out of the apartment and strolled around the Marina - the restaurants and cafe's were packed with locals and tourists - JBR walk is now getting very busy and more shops open every day - we sat and had a coffee whilst looking out over the Arabian Gulf - and the weather is absolutely fantastic.
Meanwhile back 'home' its 8c, raining heavily and everyone is complaining about the cost of heating.
I know where I would rather be..
Yesterday afternoon I walked out of the apartment and strolled around the Marina - the restaurants and cafe's were packed with locals and tourists - JBR walk is now getting very busy and more shops open every day - we sat and had a coffee whilst looking out over the Arabian Gulf - and the weather is absolutely fantastic.
Meanwhile back 'home' its 8c, raining heavily and everyone is complaining about the cost of heating.
I know where I would rather be..
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I'll agree that the 'walk' is okay - it's just that the JBR place themselves are really quite awful, small windows and balconies and often positioned so that they're looking in at each other...
In agreement 100% about where you'd rather be though
In agreement 100% about where you'd rather be though
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I just spent 3 days back in the UK on business... it snowed last tuesday.... and things there are awful... if there is a recession coming the UAE may prove to be on a RELATIVE BASIS quite a nice place to sit it out.
30-40% correction in property prices... London will be just as bad.... so will the US... at least the sun is shining here and Mr Brown can't get his grubby mits on my money by ramping up taxes like there is no tomorrow. You have to remember if you don't want to be here where do you want to be? It is crap everywhere.... really crap
30-40% correction in property prices... London will be just as bad.... so will the US... at least the sun is shining here and Mr Brown can't get his grubby mits on my money by ramping up taxes like there is no tomorrow. You have to remember if you don't want to be here where do you want to be? It is crap everywhere.... really crap
