W10

This just in...Construction company in Dubai fails to meet deadline.

And from what I hear, it's more than 2 months behind already. Remember, if you read the estimate in ET - treble it.

IndieG

Trebling it would be very optimistic. Many projects are in their 18th month of delay. Take JBR:

NAME: Jumeirah Beach Residence
TOWERS: 36 residential, 4 HOTEL TOWERS
START DATE: 2004
END DATE: Dec 2005 ( stage 1)

Not yet handed over..........

Banks have a problem with buyers who have bought to let, since they cannot start their principle repayments until they rent it out.

Blue Cat

I wouldn't buy here anyway but it must be mega frustrating if you are buying to move into it yourself, I think that is the reason that the springs and meadows sell well as they are FINISHED and people can move in. The next horror story will be Jumeirah Village.

Eeyore

Banks will start finding ways around this. We know some people who bought on the Palm on one of those "don't start paying your mortgage until you move in" deals... the bank has now got tired of waiting and has insisted that they start making their mortgage payments, and they still don't have any idea when they might be able to move in. They're having to pay rent *and* mortgage each month, which leaves them about 1000 dhs to live on

Blue Cat

which takes me back to how I have felt all along about this house buying lark, if you have got loads of cash and can afford to take the risk, go for it! good luck and all that, but if you don't invest somewhere more stable. One terrorist attack and the property market will collapse. And now that the nice people at halliburton are opening up their head office here, I think we just put ourselves on the map!!!

IndieG

That's the problem with banks here - no scruples. Did you read the article recently? - apparently 40% of the inmates in Dubai jails are there because of bounced security cheques

Regulation is very weak and hardly enforced. If this was a properly regulated environment, believe me, errant banks would be paying billions in fines/refunds/punitive damages.......here however they get away with murder.

Blue Cat

there was a guy on the radio the other day saying that these banks are going to be fined for giving loans out that aren't secured. He also mentioned the amount of people in jail for financial offences.

Eeyore

That's the problem with banks *everywhere*, I'm afraid... but as you say, in other countries there's a degree of regulation and consumer protection. Here there's squat.

Blue Cat

i honestly didn't realise that, I thought that if you got a bank loan you had to provide some sort of security. We have one for the car, but the car is their's until we pay it off. Is it not the same with the mortgages?

IndieG

Personal loans are secured by a salary transfer and end of service benefits - hence relatively lower interest rates - 10-12%. Citi/HSBC offer unsecured loans - thinks it's 22-24% p.a......sub prime lending.

Blue Cat

that's extortionate!

IndieG

Ha Ha, wait till you hear how much they've upped the maintenance fees in the Green Community ...............


Lake Apartments at Green Community. Maintenance fees for a three-bedroom house will rise from Dh10,800 to Dh30,000. And apparently the company are claiming that they are still subsidising the residents - so more rises in future.


http://www.gulfnews.com/nation/Society/10113772.html

littlejimmy

Just another example of costs rising. People are going to get driven away by all of this. Why can't they see that?

IndieG

LJ, I expect the cost of maintaining these ‘green’ communities will keep rising significantly in the near future water is a very dear (we are being subsidised significantly btw) commodity here. Similarly, the amount of power consumed here is not funny (thanks to the energy inefficient buildings).

Property maintenance costs were initially being subsidised (or at least so they claim) – in order to attract buyers. They don’t need to do that anymore – they probably figure that since owners are reaping huge profits, they might as well start squeezing them. Now the question is, with the rent caps, will the owners be able to pass it on to tenants?

W10

Now there's a surprise...

http://www.gulfnews.com/business/Rea.../10113744.html