Eeyore

I can honestly say that I would. As long as the rental income was ensuring that I didn't have to fund any expenses for the property out of my own pocket, I'd be quite happy, because I'd be the one sitting on the asset that someone else was paying for.

Equally, if my tenant chose to leave of his/her own accord, and it was legal for me to increase the rent for the new tenant to match what similar properties were going for, then I'd do that. I certainly wouldn't be unhappy that the rent law prevented me shoving a splintery stick up my existing tenant's arse come renewal time, though... but maybe my moral sense is developed to an abnormal degree

No, they're not. We had a look at them. The only major difference, really, is that they're not called "The Greens".

I can only echo what W10 has written about that.

Border Reiver

Well in that case the only reason people are being "forced" to pay high rents is because of supply and demand. There are severe delays in completing projects but that is more do to with unrealsitic completion dates and general incompetence than a conspiracy.

I've asked it before and I'll ask it again, which buildings in the Marina are completed but unoccupied?

Why does everybody seem to think that the property market in Dubai is a conspiracy against the tenants? It isn't, it is supply and demand or, to coin a phrase, "it's the economy, stupid."

If the tenants are all getting such a bad deal and the landlords are all doing really, really well- if you can't beat 'em, join 'em. Being a landlord isn't some exclusive club you have to be invited to join. Buy a property, rent it out. It's easy. Then you too could be making millions Or in the case of Gareth R running a social housing project.

W10

Pretty much by the time I arrived here I would have been uneasy about buying. I still am. I thought it was expensive 18 months ago, now its beyond stupid and being propped up by people with vested interests.

Every year it seems someone comes up with a way of making homeowners part with their cash. Plus not actually owning the land is amazing.

W10

Apparently one of the Emaar towers still has entire floors unoccupied (I don't head down to that ghastly part of town often, thats from a friend of mine who works in real estate)

Border Reiver

Well, this being an Emaar development that really doesn't narrow it down too much unfortunately.

IndieG

Realistic completion dates - I would understand 3 months or at worst - 6 month delays. But 24 months, and still no hand over? Some projects (e.g. from DAMAC) have not even gotten off ground - but then they are a different kettle of fish altogether.....

Will ask my colleague next week - he lives there, and he told me half his building is empty.

obvious isn't it....... when you choke supply, demand is going to outstrip supply?

I don't know if you recall, but there was an article in the ITP (construction magazine ? not sure) about a freeze on construction activity in DubaiLand, that was quickly withdrawn when interested parties/major developers threatened to withdraw sponsorship/business. The article was withdrawn. Bad news is well hidden. Ofcourse there is no conspiracy. Stupid me.

I have already made mine and I am laughing. Thank you.

PS: Like Gareth, I'd probably make a very lousy landlord - I wouldn't have the heart to collect an obscene rent. And if the tenant has a sob story, then I am doomed

W10

I thought they only had a few towers completed there? They are the master planners but 99% of the buildings aren't Emaar

W10

No you didn't. what was the price? Dh350,000 or something? Hardly what I'd call a huge risk.

JAT

Border Reiver

Off the top of my head I can think of 13 Emaar towers which are completed and heavily occupied. Of course then there is JBR which, rather like DAMAC, is another kettle of fish altogether. There are a number of towers by smaller developers which are also finished and look to be pretty well occupied.

A large number of apartments at the Marina are second/holiday homes which are only occupied at weekends and for a few weeks of the year. Did somebody mention money laundring? I couldn't possibly comment. Still doesn't make it a conspiracy to keep rents high though.

For the record I expect rents will fall late this year or early next, then recover over 12-24 months as supply and demand reach some sort of balance. I wouldn't expect any tenant to pay more than market rates out of loyalty to the landlord though.

Border Reiver

All the people who missed out on the property boom the first time around are now apparently hoping for a crash so they can have another chance. I don't think it will work like that. For the record I paid 430,000Dhs on the secondary market, with a mortgage of 330,000Dhs for a flat which wasn't finished and didn't even have a proper completion date. When the flats were first released Emaar where so unsure of the likely demand they had to introuduce a "rent to buy" scheme to make sure the properties sold. Oh yes, and the mortgage provider? A company called "Tamweel" which nobody had ever heard of, had only been going for 6 months and charged interest rates which were astronomical by Western standards.

It was a risk and I had a couple of sleepless nights but I thought the upside was potentially greater. Turns out I was right. If it wasn't a risk at all why didn't you grab a handful? Wish I'd bought more than one.....

IndieG

I am certainly NOT hoping for a crash (i.e. down 50-70%) - a lot of banks and businesses will be badly hurt.

I had the money then (and if I wanted to arbitrage on interest, I could've even taken a mortgage at 4% ) and didn't buy, I still won't buy at 50% lower prices - simply because I don't look at this place being permanent for us - we will stay as long as we are working here. Moreover, we live so close to work, moving there wouldn't have been feasible either.

W10

I wasn't here...I think I pointed that out earlier.For that money I would have bought some.

Easy investment as Dubai had big growth plans. And that was as low as prices were ever going to get. Even with my concerns about property law and residents' rights I'd have taken a few flats at that price.

My opinion - The 'correction' will see prices fall by 30%

Border Reiver

Sorry IG, I should have said "Some" not "All". It wasn't aimed at anybody in particular.

IndieG

No worries. But I am happy for any one who has made money in the property market ........ except the money launderers - I hope they lose or get caught....

Border Reiver

I'll go for 15-20%. If it looks like being more than that developers probably will keep inventory back for later release. But, at 20% I'd buy a few more. If I had the deposits.....