How long til the bubble burst again? | ExpatWoman.com
 

How long til the bubble burst again?

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EW NEWBIE
Latest post on 22 May 2013 - 08:33

It appears that real estate prices are heading to silly levels again, school fees are higher, food prices are on the up. People's wages aren't going up sufficiently (if at all) to cover the cost of living.

Do you think anything was learned from the last time or is greed driving Dubai towards becoming a continued boom-bust economy?

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EW NEWBIE
Latest post on 26 May 2013 - 11:40
@ Quinn10 One can have a bank account and debit card as a non-resident - but no cheque book. <em>edited by greengirl12 on 26/05/2013</em>
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EW GURU
Latest post on 26 May 2013 - 11:15
All corruption is bad but the saddest bit is when aid money for war ravaged countries like Afghanistan is looted by the President's "friends". How many people died because of lack of something that the aid money was meant for ?
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EW GURU
Latest post on 26 May 2013 - 11:13
In what country does a Judge make this much money to afford an entire floor? They keep steeling money from the poor and hiding it! I had hinted at stuff like this previously, but did not say it too directly as I did not want to offend anyone. But yes, that is exactly what had happened. Apart from judges, you have rare cases of mid level govt clerks or a "secretary" to a political leader from some 3rd world country and so on all purchasing entire floors with money they have looted. Its just a mentality. Some people are happy to have a comfortable living for their family . Others are so greedy that they want 20 flats in their name. I am calling it greed because while there is nothing wrong for a businessman to be successful, there is something definitely wrong when judges, secretaries, police and so on take bribes to be able to purchase 10 flats in some building edited by Arch on 26/05/2013
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EW GURU
Latest post on 26 May 2013 - 10:44
Empty properties don't mean the same here that they do in other places. Lots of people buy properties here as a way to store money - not as an investment per se. If you're an afghan, say, the bans in Kabul aren't safe, you can't open a bank account here if you aren't resident, the best thing to do is buy a house or five. Can't rent it out, where to put the money? So they just leave them empty. I've lots of friends in that predicament.
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EW GURU
Latest post on 26 May 2013 - 10:37
I think some of you may find this an interesting read related to this topic: [url=http://gulfnews.com/news/gulf/uae/housing-property/agents-ignore-rera-index-charge-higher-rents-1.1187296'>link[/url'>
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EW GURU
Latest post on 25 May 2013 - 01:10
Of course, there is loads of money laundering from all over - Iran, Afghanistan, Russia, everywhere! Recently, a lot of Iranians have been getting their money out of Iran, because of the sanctions and devaluation of the currency. A lot will have bought property in Dubai. When I went to see the new Damac building in downtown, the agent told me the top nationalities for buyers were Saudi, Chinese and Iranian. Egypt and Syria have seen a similar situation, where anyone who could get their money out, got their money out! I'm in downtown and their are hundreds of empty properties - in an area that has seen a rental increase of 20% or more over the past 6 months. I'm hoping that when some of the new buildings on the boulevard open rents will come down. And then there's the 3 new serviced apartment Address buildings and the Burj Vista, plus the Damac building, all going up right now and will be finished in a year or two
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EW GURU
Latest post on 24 May 2013 - 21:58
Yes.... Friends of ours sold their villa in the Meadows last year to an Afghan, who bought the place sight unseen...
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EW NEWBIE
Latest post on 24 May 2013 - 21:24
Just read the news and you will find the answers! 60billion dollars of US aid money vanished in Iraq last few years. Same thing is happening to Libya. Lets not talk about Syria, Tunisia, Egypt and so on! The prices are rising because dirty money is flocking this real estate market. These people see real estate as a safe place to hide their dirty money that they stole from the people! They can afford to have the properties being empty. As long as their dirty money is hiding somewhere, they could give a damn to rent it out! Last time I met a guy from Libya that was driving a Ferrari! A Ferrari! My friend lives in a building complex where the entire floor is owned by an Iranian Judge! In what country does a Judge make this much money to afford an entire floor? None of us here will be able to keep up with these kind of people! Agents are chasing "chash buyers". If not, they try to maximize their profit through commissions by telling the landords that their property is a lot more worth than it is! This place is becoming a joke! History repeats itself! What goes up must come down!
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EW GURU
Latest post on 24 May 2013 - 21:10
I think you'll find that a lot of the quoted square footage for properties is grossly inflated in Dubai as the property developers use creative math. Quite often the garage/carport is included in the square footage, along with outdoor balconies/covered terraces as they're still considered living space, when in the US that would not be the case. My house in the US is 3,000 square feet, and when we came to Dubai and were touring properties the agents kept saying, "oh, this is 4,000 sqft, this is 4,500 sqft" but most of the time they were smaller than my house. DH and I kept laughing. With the exception of certain buildings and the penthouses, apartments in the prime areas area also quite small for what people pay in rent. JBR does have huge apartments but the buildings that were built towards the end of the boom, particularly 2006-9, have much smaller apartments because developers were trying to cram in as many units to cash out on the boom. As with the above, the apartments are advertised as X square footage but if you actually measure the room dimensions you end up with a noticeably smaller figure, usually 15-20% off. Interestingly enough it's when you head out to the "cheaper" areas like Motor City that you start seeing much bigger apartments. The thing I don't understand about the housing market here is why everything is built so big and why there is a lack of AFFORDABLE family accommodation. At home, you can easily find a 3 bedroom house (villa) or apartment that is 1000-2000 sq ft. Here, if you're looking for 3 bedrooms, you won't see a place that's less than 1500 sq ft for an apartment and most are much, much more. Villas you rarely seem to see anything less than 2000 or more sq ft. Affordability is a whole 'nother topic... <em>edited by Tallybalt on 24/05/2013</em>
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EW GURU
Latest post on 24 May 2013 - 20:40
The thing I don't understand about the housing market here is why everything is built so big and why there is a lack of AFFORDABLE family accommodation. At home, you can easily find a 3 bedroom house (villa) or apartment that is 1000-2000 sq ft. Here, if you're looking for 3 bedrooms, you won't see a place that's less than 1500 sq ft for an apartment and most are much, much more. Villas you rarely seem to see anything less than 2000 or more sq ft. Affordability is a whole 'nother topic...
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EW EXPLORER
Latest post on 24 May 2013 - 14:59
A 4 bedroom villa at sports city as of last year was renting for 180,000. They're now asking and getting 230,000 Falcon City 5 bedroom villas were renting for 135,000 last year and they're now asking 180 plus The Villa...similar to Falcon City Have watched prices steadily climb at Falcon City and The Villas yet villas sit empty and the agents will not budge. We've been told the owner won't go for that price when making an offer. Yet the agent never makes the call. It's time for us to get serious and find a place. I for one will look to work with owners, not agents and if I need an agent I will insist the agent gives the owner our offer and not brush us off. This is all about greed and I for one will laugh when this bubble bursts again. Social media is a powerful tool. We could use it to our advantage with renting and outing unscrupulous agents. Gosh where's the 7 days people when we need them....write about this please" <em>edited by dogcatcher on 24/05/2013</em>
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EW OLDHAND
Latest post on 24 May 2013 - 13:05
I read an article ages ago, can't remember where, saying that due to rent increases and stagnant salaries, slowly people are downsizing. So yes, a villa which has increased by 50% in 6 months may be rented out, but it is probably to someone who was previously in a more expensive place. So I guess this means empty properties will start at the top level and it will slowly filter down as prices rise and people move to smaller and smaller places that they can afford. I think the examples given were the Palm and JVT - people leaving the Palm to move to JVT, downsizing. With literally 1000s of residential properties due for completion this year, I can't see this as sustainable, unless the vast majority of owners can afford to have empty properties (cutting their noses off to spite their faces if you ask me).
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EW NEWBIE
Latest post on 24 May 2013 - 12:55
So, if everyone is looking for the same price and there are buyers/tenants willing to pay this price then, surely, that's the value of the property?
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EW GURU
Latest post on 24 May 2013 - 12:19
Am I missing something? Surely it's all about supply and demand. If properties are sitting empty then the rent/sale price is too high. Neither the Landlord or the Agent are making money. I understand that people are greedy but [b'>unless every single landlord & agent out there have the same plan,[/b'> there will always be someone willing to rent/sell at the market value. Rising prices can only be driven by "greedy Landlords" or "greedy Agents" if[b'> people are willing to pay the crazy prices[/b'>. They do and they are
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EW NEWBIE
Latest post on 24 May 2013 - 12:07
Am I missing something? Surely it's all about supply and demand. If properties are sitting empty then the rent/sale price is too high. Neither the Landlord or the Agent are making money. I understand that people are greedy but unless every single landlord & agent out there have the same plan, there will always be someone willing to rent/sell at the market value. Rising prices can only be driven by "greedy Landlords" or "greedy Agents" if people are willing to pay the crazy prices.
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EW EXPLORER
Latest post on 24 May 2013 - 11:24
With all due respect not all real estate agents are greedy .... Landlords decide what rent they want and yes they are asking ridiculous prices again but it doesn't matter what we say they want the money !!! Villas sit empty because of LL greed .. Yes there are agents out there that are pushy and only want their commission and encourage the LL's but we are not all like that ok ... Im not ... I've yet to find one agent who is not causing the prices to rise. 99.9% of the time, every agent quotes 30% higher than the market rate. Just come to know that the wonderful rera rental calculated data comes from the agents itself and not by actual renters hence the crazy inflated rates. While on the other hand, I've met many landlords during my home searches who only have bad things to say of agents as these agents have caused huge losses by keeping an absurd rate thus the property is empty for months. The greed is not from the LL but by the unethical agents who work mainly for commission.
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EW NEWBIE
Latest post on 24 May 2013 - 09:48
It's not the LL's but the greedy real estate "professionals" who are driving the prices up and make sure all LL's are on board with them. All of them need to be taught a nasty lesson in being humble instead of being greedy.... With all due respect not all real estate agents are greedy .... Landlords decide what rent they want and yes they are asking ridiculous prices again but it doesn't matter what we say they want the money !!! Villas sit empty because of LL greed .. Yes there are agents out there that are pushy and only want their commission and encourage the LL's but we are not all like that ok ... Im not ... 99 per cent of expat estate real estate agents work for companies that drive their commission - and I will admit, when I fist moved here, I used all the large companies and every single one of their agents were forceful, rude in not returning calls - and boy the only one I found decent, certainly turned when negotiating the rent. It's a shame you are all tarred with the same brush. We are hoping to move in the next few weeks and thank goodness we are dealing with the landlord directly!!!
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EW GURU
Latest post on 24 May 2013 - 09:41
There's a villa down the road from us that has been empty for months and months....when we moved here last October we saw a villa with a handwritten sheet stuck to the door detailing the property and the rent - it was over 30 k more than ours - for the same property !! We've moved into a much smaller villa for the same rent that we were paying before !!
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EW NEWBIE
Latest post on 24 May 2013 - 09:29
It's not the LL's but the greedy real estate "professionals" who are driving the prices up and make sure all LL's are on board with them. All of them need to be taught a nasty lesson in being humble instead of being greedy.... With all due respect not all real estate agents are greedy .... Landlords decide what rent they want and yes they are asking ridiculous prices again but it doesn't matter what we say they want the money !!! Villas sit empty because of LL greed .. Yes there are agents out there that are pushy and only want their commission and encourage the LL's but we are not all like that ok ... Im not ...
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EW NEWBIE
Latest post on 22 May 2013 - 14:22
Exactly, it is what it is - Greed!!! I'm all for paying a reasonable yearly increase on rent, but what sticks in my throat is the blatant c**p I get told - me having to shell out on movers, me having to pay an agency fee when they've I've found the property and they've done sod all to earn and the most important thing - me having to uproot my child every 1-2 years from what she thinks is her home, leave all her wee friends behind and start anew. And before anyone gives me the whole "if you're not happy then leave" party line - I'm already aware of that........... Doesn't mean I have to like it though! <em>edited by Lynn66 on 22/05/2013</em>
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EW EXPLORER
Latest post on 22 May 2013 - 13:51
It doesn't matter what any of us think or how wrong you say it is. It is what it is and there's nothing you can do about it. It's not bad news for everyone. A lot of people got stung buying property last time round because the rents were so high. We are still in negative equity so prices can keep going up for us! Surely putting rents up to ridiculous levels - 20-30% increase pa - again will cause another bust which will still leave you in negative equity. Won't it be better to stabilise the market, make rents affordable to renters but also cover the landlords outgoings (with a profit as well) be better all round? I don't really think about it as it's all out of my control. Gone through enough stress and what ifs in the past. All I focus on is my house price going up which it is doing and hope we can remortgage and reduce our ridiculous crippling payments which are still way more than anyone I know pays in rent.
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EW NEWBIE
Latest post on 22 May 2013 - 13:40
I can only speak for National Landlords, who, if they took a bank loan to pay for the property/building/construction have to set the rents at what the banks demand. This has always been the case. Could that be the reason why some properties sit empty?
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EW NEWBIE
Latest post on 22 May 2013 - 13:39
It doesn't matter what any of us think or how wrong you say it is. It is what it is and there's nothing you can do about it. It's not bad news for everyone. A lot of people got stung buying property last time round because the rents were so high. We are still in negative equity so prices can keep going up for us! Surely putting rents up to ridiculous levels - 20-30% increase pa - again will cause another bust which will still leave you in negative equity. Won't it be better to stabilise the market, make rents affordable to renters but also cover the landlords outgoings (with a profit as well) be better all round?
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EW NEWBIE
Latest post on 22 May 2013 - 13:21
I can only speak for National Landlords, who, if they took a bank loan to pay for the property/building/construction have to set the rents at what the banks demand. This has always been the case.
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EW EXPLORER
Latest post on 22 May 2013 - 11:26
I've just had a look at some properties on Dubizzle. The yearly rent for some of the villas is same as it would cost to buy a (small) house back home. They are really nice I know and yes I would love a massive house with lovely finishes (well they look good in the photo). Unfortunately, I'm obviously in the wrong line of work..... But the reality for me is that property here is expensive and, if it continues to rise, I'll be looking at going elsewhere. Something really needs to be done to stop a repeat of 2008 rent prices. <em>edited by summer breeze on 22/05/2013</em>
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EW EXPLORER
Latest post on 22 May 2013 - 11:18
To add salt to wounds, many agencies try charging the tenant 1-2% of annual rent or 1000 dhs for typing a rent contract for renewals That is just plain daylight robbery.... seriously we need to put these agents out of business and stop being sucked into their lies.... you can buy the blank contracts from a stationary shop and type them yourself ...... i have a stash at work for my boss.
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EW EXPLORER
Latest post on 22 May 2013 - 11:17
To add salt to wounds, many agencies try charging the tenant 1-2% of annual rent or 1000 dhs for typing a rent contract for renewals That is just plain daylight robbery.... seriously we need to put these agents out of business and stop being sucked into their lies....
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EW GURU
Latest post on 22 May 2013 - 11:03
the prices are still rising - So some folks must be paying these ridiculous high rents. Until landlords are forced to pay any monies for new tenants ie., the agency fees instead of the tenant, things will never change. Ask the landlord to put his hand in his pocket every year for a new tenant and then things MAY change. To add salt to wounds, many agencies try charging the tenant 1-2% of annual rent or 1000 dhs for typing a rent contract for renewals
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EW EXPLORER
Latest post on 22 May 2013 - 10:56
With the cost of living going up, from rents to petrol - when is a good time to ask for a payrise? I am not sure petrol has gone up....
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EW MASTER
Latest post on 22 May 2013 - 10:47
With the cost of living going up, from rents to petrol - when is a good time to ask for a payrise?
 
 

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