shiva

well when you consider that the vast majority of the worlds population dont and never will own shares it seems obvious that we dont "need" to own them.

i mean do you really need a ten thousandth share of ownership in a toothbrush factory or a share in a company that makes the small bolts that fit underseats in trains???

it may be preferable to own shares and it may be vital to the global economy that some people do own shares but not everybody NEEDS too

W10

Everybody enfranchised in the Western world DOES deal in shares - they just don't know it.

shiva

yes but thats only a percentage of the world and it still doesnt mean that they NEED to own them, banks, companies etc do it or them,( well with their money anyway not for them )

MJC

Total and absolute bollocks
There will be no crash at all
It wont be allowed....

Mark my words.

IndieG

It doesn't help though, when you read this in another paper:


Many residents of Green Community, who were asked to pay up revised service charges last month — ranging between 80 per cent and 300 per cent — as compared to the previous year's maintenance fee, are now contemplating to sell their properties and move elsewhere

http://www.khaleejtimes.com/DisplayA...on=theuae&col=

MJC

And your point is Indie?

There's loads of people wanting places here.

It will not happen.

IndieG

Point is, with all the added costs being upped indiscriminately by the developer, the sums are definitely NOT in favour of the buyer now.

Eeyore

The basic principles of unsustainable boom followed by "correction" are entirely the same. Just as the professional speculators have long since moved out of Dubai property and found the next hotspot, the smart money got out of the UAE stock market before the crash. Why? Because they listened to the warnings of the professional analysts, rather than the vested interests whose response was "A crash? The mere idea is ridiculous!"

But the existence of that basic need cannot and will not prevent property value corrections when a market suddenly finds itself with too many expensive properties and too few people with the money to rent or buy them. And all the evidence, even from the Dubai government, is that this is what is going to happen (and was predicted two years ago). The basic laws of supply and demand can only be manipulated so far before they reassert themselves.

MJC

Gareth, I agree with you, supply and demand, there will remain here, people will come here.

Really they will.


PS wanna buy an apartment.....

Eeyore

The Property Week article about this was interesting. I think a lot of people who have bought on the Palm and at Burj Dubai are going to be in for a very rude shock when their service charge bill arrives.

expat.brat

Precisely. For every family that moves out of their villa because their landlord upped their rent to Dhs200k/year, there will be another family ready to move into that house because to them it is a 'bargain'.

W10

Personally I think that the correction will be staved off to a certain extent because of the enormous amount of cash floating around in the market, and the vested interests of those involved who have the capital to allow blocks to remain half empty.

expat.brat

So once again this impending apocalypse of real estate death and destruction is temporarily delayed..again.....

twinkle-star

Excuse me for being blond ...But is this thread going round in circles??

expat.brat

MJC, I would be interested in knowing why you have favourable view towards the real estate market, I remember getting the impression before that you had a view similar to W10s?