IndieG

Was trying to work out how much value you get for your money when you buy a property in Dubai.

AED 5.3 M can buy you the following 3 bedroom villa in the Meadows
http://www.bhomes.com/tool-Snap-test...ignto=&sector=

On the other hand AED 3.5M can buy you the following properties in an upmarket area (North Balwyn), close to all amenities, schools, 10kms from CBD in Melbourne:

http://www.realestate.com.au/cgi-bin...&tm=1210394999

http://www.realestate.com.au/cgi-bin...&tm=1210394999

And even the above prices are considered inflated and some correction is expected in Melbourne property prices.

Also goes without saying there is simply no comparing Melbourne and Dubai. Melbourne is a beautiful city

MacScot

Not sure what you're getting at:
a) value for money;
b) financial gain, or;
c) lifestyle.

Value for money?:

Yes, better value for money in Melbourne.

Financial gain?:

Probably better in Dubai over the next 10 to 15 years, as the place will continue to boom from a 1.5 million population to over 4.5 million by 2015. Dubai is likely to become the 'Singapore' of the Middle East, a large financial and trading centre, as well as a significant tourist destination.

Melbourne:
4-bedroom house purchased 1986 for AED 600,000
Same sold in 2006 for AED 2,800,000 (4.6-fold increase - not bad !)
Gain over 20 years AED 2,200,000
At 2008 prices would be worth AED 3.8 million.

Dubai Marina:
2-bedroom apartment purchased 2007 for AED 2,000,000
Same value today at AED 2,800,000
Gain over 1.5 years AED 800,000 (40 per cent increase - that's good !)

Also, note, that if paying by mortgage, you are paying with after-tax dollars in Australia, whereas there is essentially no tax on your salary in Dubai.

Lifestyle?:

Melbourne is a beautiful city? Well, on the whole yes, I spent 25 years of my life there. Melbourne has a great European feel to it (multicultural, great restaurants, nightlife, lots of trees, gardens, parks, trams and elegant buildings) but living in Fitzroy or Collingwood (Bohemian areas) with the beggars, tramps, graffiti and litter - not so nice. OK, North Balwyn is out in the sticks (suburbs) and has a family-orientated lifestyle.

Dubai is probably more an exciting rather than a beautiful city, but most expats only stay for a few years to build up some cash. Then 'some' of them can go to Melbourne and lay down a hefty deposit on that AED 3.5 million house in North Balwyn !

Coxy the Bear

OK, hows this for luck, bought my place in the UK for 1950000AEDin November 2006, sold in February 2008 for 2550000AED. By April 2008 it had already dropped to 2300000AED. Recession has arrived! Thank god I bought and sold when I did!

IndieG

Mostly a and c. b) would be an added bonus.

North Balwyn/Hawthorne East - exactly for that reason. Family orientated and great schools close by. 8-10 kms from CBD is not exactly a far flung out in the sticks suburb.

MacScot

Good timing, Coxy !

I did the same with a 2-bedroom flat in Brighton Marina. However, the southern British recession is not affecting Marina prices (limited stock) and rich or wealthier Londoners love to travel down to Brighton at the weekends or just have a holiday home there.

I said southern Britain, because house prices are still going up in Scotland !

MacScot

I used to work in Hawthorn East at 25 Burwood Road.

Inner city dwellers always call anything outside their area as the 'sticks', including North Balwyn and Hawthorn !

ScotsExpat

Yep!! Have seen a 40% increase in my place just outside Aberdeen (purchased 2005), where the market is rocketing... Decided to keep it as the mortgage is minimal and it doesnt matter if I get it rented out or not, I can cover the payments from here...

Now, also, property developers are no longer selling new-builds for a fixed price. Lately, there have been developments where the first 10 go at fixed, the rest is a bidding war...

IndieG

Just as well we're not looking at living in the Dandenongs then!

You forgotten the currency appreciation against the US$ - $.50 (Oct 2000) to $.94 (present). So add another 90% appreciation....

macteepee

Melbourne - why'd you want to live there?? Why not the other cities of Australia?










(says she who desperately doesn't want melbs to change too much before returning to her greatly missed home in a couple years).As long as you stick to Nth Balwyn area....... I don't want to live there....

P.S - Coxy have you lived in the Fitzroy area?? There's graffiti in many other areas other than collingwood and fitzroy! And the litter you mention.......well I don't know what it's like in Dubai, but in Bahrain it's absolultely shocking what I see on a day to day basis. I lived in the nth fitzroy - nth carlton area from '03-'05 and loved it! No car, catching a tram to work that only took 15mins; being able to walk/stumble home from the city on NYE when there's no taxis available....... If properties weren't so expensive and it wasn't affected by the b&e's as much as it is, i'd buy my dream house in carlton for sure!

IndieG

Close family living there.

What do you mean?

We haven't decided yet.... Hawthorne East is my first choice. Malvern is nice too (family live on Evart St - just opposite a small park).

MacScot

Yeah ! That would be the 'bush' then !

macteepee

Sorry.......I just re-read that and it didn't quite sound right ! I meant that I don't want there to be housing 'booms' in areas I want to live in, as Melbourne is getting expensive enough as it is.........

Anyway, enough Melbourne talk from me. I've been homesick enough as it is

macteepee

BTW - I meant my 'why'd you want to live there' in jest - hence the type of smilies I used........

I KNOW why it's the BEST city in the world

macteepee

Hmmm....... I can't seem to be able to edit my posts

I meant madscot instead of coxy in my first post btw

arbroath_abroad

thank christ as my newbuild is completing next month...Its went up nearly 40,000GBP since the development was announced and we reserved..

No doubt it will crash just as i have signed the mortgage...

Same when we buy here, ill prob walk out of the bank after signing for a property, look up and see the B52 bombers heading over to Iran...

Lucky Arbroath_Abroad