Emirates Accommodation MS - Are all villas the same?

[fercho]

What are the downsides to buying a property and just getting your property where you want? Just from looking at what they offer salary wise I thought it would make more sense to buy, get the living allowance and investing it. Or am I wrong in thinking its that easy.

[BigGeordie]

The downside is marked volatility and sometimes a lack of liquidity. After the financial crash it took 7 years for prices to get back up to their previous level. Prices are high at the moment and negative equity is a real possibility. Making a lot of money is also a possibility.

In summary, do you feel lucky?

[A320LGW]

Originally Posted by BigGeordie

The downside is marked volatility and sometimes a lack of liquidity. After the financial crash it took 7 years for prices to get back up to their previous level. Prices are high at the moment and negative equity is a real possibility. Making a lot of money is also a possibility.

In summary, do you feel lucky?

At the roadshows they're saying the accommodation allowance is not on offer at the moment, unless you purchase a property with a Dubai address

Would it nearly be worth joining and waiting for the next crash to then buy ...

[BigGeordie]

If you don't mind trying to catch a falling knife then yes.

I'll say it again, do you feel lucky? The Dubai property market can be like Bitcoin. It is easy to make a fortune. Even easier to lose one.

[Tight Seat]

Or you can look at it that EK are taking the risk by paying the bill.
Personal choice, I live where I love living ( not in Dubai , a little bit north ) . I have a great place , life and EK pay for it.

I wouldn’t say I tried to catch a knife , I found where I would be happy and the allowance pays for it.

If I’d lived at home I would have to have lived in a house I could ‘afford’, my airline wouldn’t have paid for it .

[BigGeordie]

This is true - if you are confident you will be here for 20 years then you would be mad not to take the allowance and buy somewhere - at the end of those two decades you have a free house.

But, buyer beware, during Covid, a lot of people found out that they weren't going to be here for 20 years after all. Many had to sell quickly, some had negative equity. Are you sure you will be in Dubai long enough to pay off most of the mortgage? Are you sure you will be able to keep your medical that long? Maybe nothing will go wrong and you (or your family) will just decide they have had enough of Dubai but you won't be able to leave because you can't sell your property.

Certainly buying a property in Dubai can work out very well, and does for many people, but go into it with your eyes wide open and know what you are getting into. It is probably nothing like buying a house in your home country.

[Meursault]

Interesting topic, especially to the many expats around the world. Buying can be very beneficial long term but costly when your plans change. I understand utilities are included in the company provided option? Beware of management fees, renovation costs, stamp duty, estate agent fees etc. Include the often neglected oportunity costs for the downpayment plus further expenses above the allowance down the route.

If you buy you are basically doubling down. If Dubai is succesful in the future you got potentially a safe workplace plus capital appreciation on your property. In a regional crisis you might lose job and investment.

Disclaimer: I know nothing about the real estate market/ finance rules etc in Dubai