DXBtoDOH

There are a lot of people, families included, who make do on that and live well, by their standards.

Ok, they're not Western for the most part, but even a western couple and newborn can probably live decently enough on 20k a month in the UAE, in a simple apartment and rarely going to brunches/golfing/staycations/shopping at Dubai Mall. This is spending the entire 20k.

I know we've had this discussion before (many times) but if you're not a heavy drinker, you don't prioritise going out to expensive restaurants, don't care about expensive activities like golfing and dune bashing, go to Carrefour for all your shopping instead of Spinneys/Waitrose, it's not difficult to stick to a budget and still live reasonably well.

He just needs to be aware that social life for westerners centres around expensive activities, the brunches and golfing and drinks out every Thurs/Fri nights, dinners with friends at Madinat, this constant pressure to spend spend spend just to maintain a social network. But if he can withstand that I don't see why it can't work.

brogers66

Thank you!

I'm under no illusions that this is going to be a breeze, but by being smart and budgeting sensibly, I think we can make it work.

We're not big spenders anyway, and have never been ones to 'live it up' in the sense in which you describe, but of course I recognise that may change!

Get the impression that we really need to get a good handle on where we decide to live and the associated costs with that.

Which is why any other alternatives to the Ranches would be great!

Had previously dismissed the Greens because of the space for the dog, but have had another look and it seems it could work, particularly if you're saving on the cooler fees!!

On that point though, is anyone able to give me a breakdown of how all the utility elements work? I hear DEWA (tax), gas, elec and ac?!!!!

Millhouse

Yes, do you?

DXBtoDOH

Yes. Owned two cats and involved with pet groups and have plenty of friends who had dogs and shipped dogs back/forth.

99% of the time it's fine.

DXBtoDOH

Monthly Dewa consists of two parts: your 5% housing tax, that is 5% of the rent and divided by 12, and then your actual electricity/water usage. The electricity/water is quite cheap. A few hundred AED at most.

AC is the variable. Villas pay for their AC through the electricity usage so the a/c usage is factored into the electricity component of the dewa bill. Apartments, however, are different. Most apartment buildings in Dubai are constructed with a single A/C system for the whole building, so each apartment is not metered separately. The cost of the system is paid for by the landlord out of his maintenance fee (or the building owner out of his operating costs). The tenant does not pay a separate charge for a/c because the usage can't be metered separately. However, turning on the A/C in your apartment does generate a bit of energy usage through the switches so your summer dewa bill may go up a bit - but by around 50 to 100 AED at most compared to the winter months.

Then we have district cooling schemes, where a centralised cooling plant pumps a/c into the surrounding buildings. Under this system, the A/C can be metered separately, so the cost is passed on to the tenant, rather than the apartment or building owner. In a typical district cooling scheme, the tenant pays a fixed quarterly charge regardless of his actual usage, then he has the actual usage on top of the quarterly charges and the cost is based on the usage. I have friends in 1-bedroom apartments in JLT and they average 500 a month altogether, year-round even though the A/C isn't on at all in the cooler months.

Most of Dubai is chiller-free. This includes the Greens, most of the Marina (but not JBR and one or two other buildings), most of Downtown (except a few newer buildings), Sheikh Zayed, Al Barsha, Tecom/Barsha Heights, Sports City, Silicon Oasis, as well as most of Bur Dubai and Deira.

District cooling areas are Palm Jumeirah, JLT, Discovery Gardens, Motor City, JVC (I think), Business Bay and a few other master planned communities.

Always ask and verify when looking at buildings whether it's district cooling or chiller free.

scrubbedexpat141

Of course, you're right.

Sorry mate, go for it. 25k is a cracking offer for a husband, wife, baby and dog.

DXBtoDOH

Don't get pissy.

Just pointing out that a simple lifestyle can be had on that offer. No one is calling it a cracking offer but if he sticks to a budget and is realistic and careful, it can be manageable.

People's responses to finances can be funny. The truth is that most people grow into their incomes, they become used to it and can't see how they can manage on less, despite that plenty do. When you're forced to manage on less, you discover different ways of still living well that doesn't cost you as much money.

scrubbedexpat141

Don't be so nasty and condescending then?

I'm sure as shit that if I or someone else had suggested it was workable you'd have come and told us it was immoral or similar.

brogers66

Is this the municipality fee that i've been reading about? Had assumed and already saved for that value as an annual sum (based on a 140k villa), so if it's monthly, it makes the initial set up a bit more manageable.


So essentially, if i'm now going to be a bit more sensible and find a reasonable appartment at say, the Greens, I want to be looking for a place that's chiller free, as that should substantially reduce my monthly costs?

Thanks again for the comprehensive replies and time taken to get back to me, it really is appreciated.

I absolutely understand this move won't be easy, but as it's something new, we have an opportunity to set our stall out and create the lifestyle that we can afford, not that we necessarily desire. It through all these questions and sensible budgeting that I hope we'll be ok. Have a lot of savings to fall back on if required, but just want to be smart with it all first!!

DXBtoDOH

Now you're being irrational.

Millhouse

Don't bank on it. The places with free AC tend to have higher rents. Rent and AC are the same thing in my opinion, unavoidable cost. If you pay AC it's about 400dh a month for an apartment (500 summer, 200 winter) or about 1000dh for a villa (0 winter, 2500 summer)

If your decision to move comes down to the cost of AC or if the council tax is paid monthly or not then you're already ****ed.

I'm a firm believer that housing should never be more than 1/3 of your salary: on 25k, that gives you 100k a year in rent to play with.

DXBtoDOH

Yes, that's the municipality fee.

I will also really emphasise not taking a villa.

Not only are apartments much more economical (your utilities are a fraction of those in villas) but apartments tend to be located in areas that offer a lot more for your wife within walking distance. JLT, for example, has scores of little restaurants and coffee shops she can walk to with the pram, or small markets to run to for the milk or bread. And there's two metro stations so she can get out and about and head for the malls, or cross over to Dubai Marina. And it means you won't need a second car.

But if you must take a villa, Mirdiff is probably your best bet. Or a 2-bed in the Springs.

DXBtoDOH

Really depends where you are. Some areas with chiller charges are quite expensive already - Palm and JBR, for example, while cheaper buildings in the Marina are chiller free.

If he can save 500 a month by avoiding chiller charges in a comparable building, that's 6k a year in savings and goes a long way on his income, or he could use it to reduce the differential in upgrading slightly to a nicer building/area.

Anyway, it's something for him to keep in mind when doing the calculations on where to live. On his income every bit of savings counts.

Millhouse

Like I said, if it boils down to the AC bill then it's not worth it.

brogers66

It absolutely doesn't.

I'm comfortable that we can get by - or however one wants to phrase it - on the amount i'll be getting, but I do feel that if there are any areas within my monthly spend that I can reduce, then that can only have a better impact in the long term!

Thanks again, all!