would you buy a property now or wait for couple of months | ExpatWoman.com
 

would you buy a property now or wait for couple of months

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EW NEWBIE
Latest post on 18 December 2014 - 12:42
Love this forum! Not sure if I am repeating earlier points but if you own a property valued at over 1m AED then you are eligible for a residency visa. We bought conservatively; a small flat in an Emaar block; maybe a stupid decision but only time will tell. We still have a savings buffer to fall back on if needed & our mortgage is a 1/3 of our rent. As long as the market stays the same we should make money on the flat but we can afford to sit it out for a few years if the market falls. Why did we buy? We did not want to keep on renting, being at the mercy of our LL plus we have a generous housing allowance so made sense to us to put that towards buying. We have a property in the UK that is rented out with the mortgage covered. In an ideal world, I wanted to buy another flat in the UK but the prices in the South are so incredibly high that we could not afford it. We are living in it and then will keep it as long as we can as a pension pot - let's see how it goes!
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EW EXPERT
Latest post on 17 December 2014 - 01:41
In 2008 our one bed rental was 125,000, one cheque. 2010 rent dropped to 75,000, 4 cheques. Massive difference.
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EW GURU
Latest post on 16 December 2014 - 23:17
I wonder if rents and property prices are about to change with the fall in the oil price. Today was black Tuesday in the UAE stock exchanges. Emaar shares have dropped 40% this year and 14% has been wiped off the Dubai benchmark price in the last few days. The Russian rouble is in free fall and interest rates have just been raised there to 17% today. This will surely impact both tourism and inward investment, there may be investors looking to liquidate their assets here. I am no financial expert by any measure but I would say hang on and see what happens. Interesting times are afoot. <em>edited by Genie on 16/12/2014</em>
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EW NEWBIE
Latest post on 14 December 2014 - 17:50
You could have bought a villa on the Palm for 2.6 million dirhams in 2001 now they are upwards of 15 million dirhams, which is an increase of almost 500%. I look at property as a investment. With all due respect I can't see the North of England or Eastern Europe property prices rising at the same rate as the UAE. A lot of people made millions when they bought that early. And I say: good for them! Well done! And a lot of people lost their life savings. But as the OP is asking whether it's wise to buy now, [b'>we're talking about 2014.[/b'> As I previously said: real estate in Dubai is a high risk investment. Don't gamble with your life savings. Yes I know that. I answered the question 3 pages ago. Any property market is high risk but some have better returns than others.
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EW NEWBIE
Latest post on 14 December 2014 - 17:27
The more I read this forum sometimes I feel really happy that I am at peace and happy where I live. That I live in a country that I like and don't feel hostile about. I would not want to be in a situation where I did not. Can't be that nice.
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EW EXPLORER
Latest post on 14 December 2014 - 17:20
You could have bought a villa on the Palm for 2.6 million dirhams in 2001 now they are upwards of 15 million dirhams, which is an increase of almost 500%. I look at property as a investment. With all due respect I can't see the North of England or Eastern Europe property prices rising at the same rate as the UAE. A lot of people made millions when they bought that early. And I say: good for them! Well done! And a lot of people lost their life savings. But as the OP is asking whether it's wise to buy now, [b'>we're talking about 2014.[/b'> As I previously said: real estate in Dubai is a high risk investment. Don't gamble with your life savings.
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EW NEWBIE
Latest post on 14 December 2014 - 17:02
No point buying a house if you have to mortgage yourself to the hilt A lot of people have, that's the problem. Dubai is indeed not the UK. Do not expect a bail out from the government like we saw during the crisis Well, given that the Dubai government needed to be bailed out by Abu Dhabi to stop it defaulting on billions of dollars of debt ... :) mortgage repayment holiday, ....Not here There's a radio ad at the moment advertising mortgage repayment holidays with one of the banks :) <em>edited by VelmaDoo on 14/12/2014</em>
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EW NEWBIE
Latest post on 14 December 2014 - 16:58
You could have bought a villa on the Palm for 2.6 million dirhams in 2001 now they are upwards of 15 million dirhams, which is an increase of almost 500% If I had 15m AED to spend on a property, it wouldn't be on a concrete villa on the Palm. It wouldn't be anywhere in Dubai. I would spend it on an amazing house in a country with established property rules, in which I could live permanently without relying on a sponsor, and which had a better year-round climate than the UAE.
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EW NEWBIE
Latest post on 14 December 2014 - 16:56
Beauty is in the eye of the beholder. Every situation is specific and buying a house is very much a financial decision coupled with various scenarios one expects to materialize with a certain probability. No point buying a house if you have to mortgage yourself to the hilt. Dubai is indeed not the UK. Do not expect a bail out from the government like we saw during the crisis. Northern Rock, interest rates set almost at zero, mortgage repayment holiday, ...., rewarding reckless behavior. Not here. So make sure that if you buy a house, it makes sense both financially and in terms of life plans. With respect to build quality in Dubai, the rules that can change at any time, blah blah blah blah, these are questions that one needs to assess independently. You cannot imagine how many expats I met that spend their time bad mouthing this place and praise their home country. I feel sad for them as it must be very difficult to be like that all the time. Well I hope at least they make enough money so they can buy their dream house in their home country and leave. It will be better for them and for me.
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EW NEWBIE
Latest post on 14 December 2014 - 16:54
You only need to look at where Dubai was 40 years ago to see buying a property here is a no brainer What about all the people who thought that, but have lost everything? You can buy a great property here for far less than you can in the UK and rent it out for far more, yet people are buying in the UK and renting it out for far less........why ??? are you mad? Lots of people prefer to buy in a country with mature property laws and real ownership that has been tested and proven in the courts over hundreds of years. They probably also want to know they've got somewhere to go in their home country if they lose their job here and are forced to leave, which could happen to any of us at any time. And of course, at the end of the day the UAE is situated in a very troubled and unstable region. Only a fool would think that the situation could never change for the worse.
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EW OLDHAND
Latest post on 14 December 2014 - 16:13
We have been happy buyers for 12 years now, and lived through various ups and downs of the property market, which I am sure there will be more of like any other property market. It will only matter at the time at which we wish to buy or sell again, like any other property market in the world. Having our lives and home (yes home!) linked to our jobs is always something to consider which is why buying is such a personal decision.
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EW MASTER
Latest post on 14 December 2014 - 16:07
You could have bought a villa on the Palm for 2.6 million dirhams in 2001 now they are upwards of 15 million dirhams, which is an increase of almost 500%. I look at property as a investment. With all due respect I can't see the North of England or Eastern Europe property prices rising at the same rate as the UAE. Probably not, but who is going to spend 15Mil on a property that may or may not be standing in 15/20 years time. For that price I would want something I could hand down to my family. Also as I have said, what happens when the jobs run out here and you end up with a property you can't sell and you have to leave urgently?
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EW NEWBIE
Latest post on 14 December 2014 - 15:55
You could have bought a villa on the Palm for 2.6 million dirhams in 2001 now they are upwards of 15 million dirhams, which is an increase of almost 500%. I look at property as a investment. With all due respect I can't see the North of England or Eastern Europe property prices rising at the same rate as the UAE.
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EW MASTER
Latest post on 14 December 2014 - 15:39
You only need to look at where Dubai was 40 years ago to see buying a property here is a no brainer. You can buy a great property here for far less than you can in the UK and rent it out for far more, yet people are buying in the UK and renting it out for far less........why ??? are you mad? For less..? You need a reality check, I'm afraid. [b'>You can call yourself lucky if you can find a villa in Dubai for AED 2,5 million. For the same amount (EUR 550,000)[/b'> I can buy a stand alone villa with a nice garden in one of the most expensive cities in my country. And I'm from West Europe. And that villa in my country could be almost 100 years old, good enough to stand another 100 years. Every single dirham we earn here, and after paying stupid rents, schooling fees etc, is going straight back to our home country, where we are citizens and have rights. To keep it here.. Now that would be mad. edited by Notnewintown on 14/12/2014 For that price I could buy an fantastic house where I come from. There's no way I would spend that kind of money on the villa I'm renting at the moment and they are actually going for more than that !!
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EW MASTER
Latest post on 14 December 2014 - 15:18
And also how many of us have guaranteed jobs here. We certainly don't.
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EW EXPLORER
Latest post on 14 December 2014 - 15:12
You only need to look at where Dubai was 40 years ago to see buying a property here is a no brainer. You can buy a great property here for far less than you can in the UK and rent it out for far more, yet people are buying in the UK and renting it out for far less........why ??? are you mad? For less..? You need a reality check, I'm afraid. You can call yourself lucky if you can find a villa in Dubai for AED 2,5 million. For the same amount (EUR 550,000) I can buy a stand alone villa with a nice garden in one of the most expensive cities in my country. And I'm from West Europe. And that villa in my country could be almost 100 years old, good enough to stand another 100 years. Every single dirham we earn here, and after paying stupid rents, schooling fees etc, is going straight back to our home country, where we are citizens and have rights. To keep it here.. Now that would be mad. <em>edited by Notnewintown on 14/12/2014</em>
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EW MASTER
Latest post on 14 December 2014 - 15:10
You only need to look at where Dubai was 40 years ago to see buying a property here is a no brainer. You can buy a great property here for far less than you can in the UK and rent it out for far more, yet people are buying in the UK and renting it out for far less........why ??? are you mad? It depends where you live in the UK. I had my mortgage at home when the rates were low and not being from the South my house is now worth over 4 times what I paid for it due to its location/schools access to the major motorways etc. I get a large amount back in rent and have had a great tenant for 8 years and I have something to go back to should I leave Dubai The cost to buy my one apartment here is 1.4million which is 230,000GBP I could buy a 3 bed house for that in a lovely village back in my home town.
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EW NEWBIE
Latest post on 14 December 2014 - 15:04
You only need to look at where Dubai was 40 years ago to see buying a property here is a no brainer. You can buy a great property here for far less than you can in the UK and rent it out for far more, yet people are buying in the UK and renting it out for far less........why ??? are you mad?
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EW MASTER
Latest post on 14 December 2014 - 14:57
I could never call Dubai home as although I am here for hopefully the next 5 years, we have already found out once how easy it is to end up jobless. I would have hated to have been in this position having bought a house here. I have many friends who bought pre 2006 and made a lot of money selling said properties and others who lost a fortune in investments that still haven't been built If I had been here 10 years ago then yes I would of bought a property but I wouldn't now unless I had all the cash upfront/ I saw too many friends go through hard times. I decided to pay my UK property off instead.
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EW MASTER
Latest post on 14 December 2014 - 14:50
I could never call Dubai home as although I am here for hopefully the next 5 years, we have already found out once how easy it is to end up jobless. I would have hated to have been in this position having bought a house here.
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EW NEWBIE
Latest post on 14 December 2014 - 14:50
Why are some people almost upset when someone considers it home here. Weird attacks on people I don't see any attacks, just an acknowledgement that whatever we may think, Dubai can never truly be our permanent home because all of us are only ever 30 days away from being forced to leave. An awful lot of people who thought they were here more-or-less for good have found themselves in that position after a totally unexpected redundancy, and they will attest to how terrifying it is. We have been here for 15 years, and plan to be for many more years to come And hopefully you will be. But you can't rely on that, none of us can, which is why proper plans as to what we will do if we are told tomorrow that our residency is going to be terminated in 30 days are essential for everybody. Its not all bad owning a house here Nobody said it was, did they? But there are very definite caveats. With respect to comments pointing out the bad quality or robustness of properties in the Emirates Living area, I completely disagree As is your prerogative, of course. But in a choice between homeowners with a vested interest in talking up their properties, and experienced construction engineers who have deliberately chosen not to buy here because of what they know to be true about the construction techniques and standards here, we'll exercise [i'>our[/i'> prerogative to believe the experts ;)
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EW MASTER
Latest post on 14 December 2014 - 14:49
I think what the OP are saying is that Dubai for most of us isn't "our legal home". It may be home to many people now, however if things went pear shaped, people lost their jobs, didn't have savings to fall back on, couldn't find another job, get a residence visa etc then they would have to go back to their actual homes.
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EW NEWBIE
Latest post on 14 December 2014 - 14:36
Timing is the essence. We bought 3 years ago. Prices are up 50% and we saved 3y of renting which is roughly 1M AED. Great. Would we buy today? Difficult to answer. Are we selling? No, because where we live there is limited supply of properties and we made Dubai our home and no way we would go back to Europe/UK given all the problems they face. With respect to comments pointing out the bad quality or robustness of properties in the Emirates Living area, I completely disagree. The villas are rock solid and if properly maintained I cannot see why they shouldn't resist another 20 year. It is all about maintenance and taking care of your property. I also find it very childish that most of the subjects about owning property in Dubai always end up as comparison between Dubai and one's home, which most of the time tends to be the UK. Well, it's another sunny day so off to the beach. ;) Really? You have made Dubai your "home"??? Dubai is home for no one but locals or their families. You are here until you are working and until you retire...there on it wont be your home unless you invest here and run business in your old age or you start arranging "unlimited funds" for your after retirement time....Dubai is definitely not home to anyone who is not "investing" or "working" here. I am not sure its really your place to tell someone what their home is or isn't. Dubai is my home, its where I have lived half my life, where I got married, had my children and where I own my own home that I have happily lived in for the last 8 years. Your definition of a home is obviously not the same as mine, my home is where my husband and children are, and for the moment that is Dubai. Some people seem really upset and aggressive about this home ownership issue, I really cant understand why. I am a very happy home owner, I answer to no landlord and live in a house I renovated to my standards and my taste, I love the community I live in and I am very happy. Its not all bad owning a house here.
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EW NEWBIE
Latest post on 14 December 2014 - 14:16
Why are some people almost upset when someone considers it home here. Weird attacks on people. I am a happy home owner. We bought three years ago and feel very pleased with our decision. Our house is in Meadows and no it is not run down or shabby, Paying rent did not appeal to us as we had drowned a fortune in rent for over a decade. So we bought when the prices where down. We don't even care that prices now are high as we would not sell, it is our home and our lives are here and we feel really settled in Dubai. Even if the prices go down, one day we will go back with what we invested rather than lose rent money. We have been here for 15 years, and plan to be for many more years to come. But I think the prices might come so it might be a good idea to wait a little if you plan to purchase. Good luck whatever you decide.
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EW NEWBIE
Latest post on 14 December 2014 - 12:47
Timing is the essence. We bought 3 years ago. Prices are up 50% and we saved 3y of renting which is roughly 1M AED. Great. Would we buy today? Difficult to answer. Are we selling? No, because where we live there is limited supply of properties and we made Dubai our home and no way we would go back to Europe/UK given all the problems they face. With respect to comments pointing out the bad quality or robustness of properties in the Emirates Living area, I completely disagree. The villas are rock solid and if properly maintained I cannot see why they shouldn't resist another 20 year. It is all about maintenance and taking care of your property. I also find it very childish that most of the subjects about owning property in Dubai always end up as comparison between Dubai and one's home, which most of the time tends to be the UK. Well, it's another sunny day so off to the beach. ;) Really? You have made Dubai your "home"??? Dubai is home for no one but locals or their families. You are here until you are working and until you retire...there on it wont be your home unless you invest here and run business in your old age or you start arranging "unlimited funds" for your after retirement time....Dubai is definitely not home to anyone who is not "investing" or "working" here.
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EW NEWBIE
Latest post on 14 December 2014 - 12:38
Timing is the essence. We bought 3 years ago. Prices are up 50% and we saved 3y of renting which is roughly 1M AED. Great. Would we buy today? Difficult to answer. Are we selling? No, because where we live there is limited supply of properties and we made Dubai our home and no way we would go back to Europe/UK given all the problems they face. With respect to comments pointing out the bad quality or robustness of properties in the Emirates Living area, I completely disagree. The villas are rock solid and if properly maintained I cannot see why they shouldn't resist another 20 year. It is all about maintenance and taking care of your property. I also find it very childish that most of the subjects about owning property in Dubai always end up as comparison between Dubai and one's home, which most of the time tends to be the UK. Well, it's another sunny day so off to the beach. ;)
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EW MASTER
Latest post on 14 December 2014 - 11:26
Has anyone seen the value of crude oil today? I would think very carefully about investing in a property in Dubai. I firmly believe there is a huge correction coming our way. Down to $57 from $114 During the crash it was in the $40's. It will be interesting to see what happens next year :biggrin:
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EW EXPERT
Latest post on 14 December 2014 - 11:06
If you really want to buy make sure its a good deal and dont overpay. Also be careful with projects where you have to pay a lump sum before building has begun...these companies sometimes take your money and when you sue them they get the upperhand as someone in the company has influence over authorities. Just search and read username 'skyhighgirl' posts of how she paid all her savings for a new property,won her court case and still hasnt received any correspondence or money.... <em>edited by Asti on 14/12/2014</em>
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EW MASTER
Latest post on 14 December 2014 - 10:57
Aside from the factors discussed, regardless of whether its a good investment or not, we are all subject to the very real possibillity of a change in legislation that could impact our ability to work here long term even if we plan to. The opinions expressed in this article by FNC members shows that there is a growing resentment toward expats and the way they are seen to use the opportunities Dubai provides them and the failure of Emiratisation in the private sector to be linked to expats “They continue to insist to hire people from the same nation [as themselves'> and will often pay extra to ensure that the Ministry of Labour allows them to recruit from their same nationality,” he said. “Why has no one questioned why Emiratis continue to resign from the private sector?” The FNC member said the high turnover of Emiratis in the private sector was often a result of expatriates creating a hostile environment. Winds of change? http://www.thenational.ae/uae/emiratisation/the-best-way-to-enforce-emiratisation-in-the-private-sector
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EW GURU
Latest post on 14 December 2014 - 10:42
I have to agree that the construction quality is something to be concerned about if you're interested in buying property here. You can always point at a certain house in the UK or the US and say it's poorly built compared to a brand new house in the UAE, but on the whole houses in the West are much better and more reliably constructed than in the UAE. As Velma says, all one has to do is to drive around the Springs or Meadows to see how poorly the houses have aged. When we first moved to Dubai in 2007 we did briefly consider buying a property but then we saw the Meadows and Lakes villas and many of the windows were already popping out of their frames and kitchens were deteriorating and tiles falling off the walls, and these villas were only 3-4 years old! That's when DH laughed and said forget it. Having said that, Arabian Ranches, especially Savannah/Saheel, does seem to be better built than Emirates Living. Something about the intense heat in the UAE during the long summer months really does wreak havoc on property here. It wears down the property so quickly. Another part of the problem is that most properties are investor owned, which means landlords defer maintenance problems and tenants aren't bothered to respect the property insomuch as if it was their own, so it's a real risk buying a property that has been used as a rental for a long time. By the way, for those of you who haven't seen 7 Days today yet, there's a front page article saying property prices are expected to fall by 5-10%. I was here during the last crash, and at the onset the initial forecasts were also only a 5-10% decline in prices and we know what happened! http://7daysindubai.com/cost-property-expected-fall-according-global-survey/
 
 

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