TGFKASE

Out of interest, who would you sell too?????

diablo

If I had the money I would buy an apartment or two now or perhaps in September. Even if the banks offer loans with say 10% deposit on a low interest rate I would buy again. So to answer your question, I guess to some naive dude like myself. Or the guy who's selling an office

typical

There were lots of BTLers saying this in the UK as rents fell. These are mostly people now enjoying voids, stuck in negative equity.

I've seen people trying to offload 4 bed places in JBR for under 2 million...

Qataruser

The only people who still think Dubai's real eatate markets is in good shape are Agents and people still invested.

It's OVER and will be probably for ever. Too many people have been burnt and prices are still too high for anyone with any real sense to get involved.

WE will look back on the last few years and wonder, not went wrong thats clear, greed and stupidity, but just WTF were we ever thinking ?

I heard on another site a bloke had a cash buyer for his place over OP. He said he will "hang on" HELLO if someone offers u more NOW than u paid for it SELL.

This physcologly is why ordinary people should not buy shares, they go up people feel rich, they fall and people think it's ok they will go back up again.

Dubai IS the real estate DOT COM BUBBLE it's been said before and should be said again. Prices don't always come back, Emaar is NO google

Tooterelli

You sound like one big freakin idiot.

Blue Cat

never had an issue with you Diablo or your investments, as you say earlier you could sell them for what you paid for them, which you may well be able to do as you got in at the beginning. As for re renting your four bed out for more than 200k - no chance. Apartment rentals, even the luxury ones have dropped by 50%. 2 bedroom apartments with sea views on the Palm are being rented at 130k which includes a beach club etc. Realistically if you can re rent at 200 I would think you are lucky. Hat's off to you if you do.

I don't want to see anyone lose money through the property crash that has happened here. Sadly those who invested in the last two years inevitably will unless they stay in for the long haul. A property is only worth as much as someone is prepared to pay/rent for it. You may well be lucky and someone may come along who has a company allowance of 200k and they will be happy to let their Company pay it for them, how long will they be around though? I am looking for a villa, found a few that are real nice, big three beds with shared pools, gyms and security etc for 180k and less. There are some nice 5 beds in Al Barsha, brand new -210k. Now if you had a choice between a 4 bed apartment or a 5 bed villa, I know where most people would put their money.

Qataruser

Bluecat you are right there. I would not like to be holding a 3/4 bed apartment right now as their prices have to fall a long way.

If you read this article about the UK and replace the UK with Dubai you have the situation here. Scary stuff

http://www.telegraph.co.uk/finance/p...-hammered.html

Blue Cat

I have posted alongside Diablo for some time now, he has taken alot of stick for his investments but I respect his his decisions. No one wants to see people out of pocket. He invested at the right time, he will take a drop in rental income but in the long term I can't see him losing on his investment, just not making as much as he originally planned. I may be wrong though ..

diablo

you don't just sound ... you are one

diablo

Hi Blue Cat,

Just reading the news - in UK:

"With the Council of Mortgage Lenders predicting as many as 75,000 repossessions in 2009"

"Ed Stansfield, property economist at Capital Economics, said: "Rising unemployment and widespread pay freezes will mean that prices fall considerably further."

"The effects of the continuing banking crisis will be felt for generations, a committee of MPs has warned."

Have we burnt our fingers only in Dubai? It seems to me that some people go and google 'dubai property crisis' just to find anything which may sound detrimental to Dubai.

I prefer waiting for 5 minutes to get my maid's visa; I enjoy quieter roads in Dubai, I am happy that his construction madness has slowed down (it means less apartments on the market too); I love fewer people in the Mall of Emirates; I enjoy upgrades in Emirates and not so crowded flights. Why is everyone complaining?

As for the investments I made; I think I can pay all of it without any of them being rented. When I invested in the first place - one of the factors was whether I can afford it (pay the loan) without tenants. The idea of tenants is for the apartments to pay themselves. It may be so that for a few years I will have to pay them myself (no tenants) but ... that was the calculated risk. I am looking for returns from 2020 onwards ... at the moment I am investing.

Blue Cat

excellent post

I aint complaining, bring it on I say. I can't wait for the quietness of the summer and malls being empty. It's sad for those who have lost their jobs though.

diablo

So what you're saying is - Diablo, be quiet and hope the tennants won't ask for a reduced rent?

Anyhow, I rented my 4-bed to 4 guys - K50 each on 4 cheques. They're friends / singles and they enjoy areas like JBR where you walk out of the building right into the crowd of tanned bodies / short skirts (no offence). They are not family villa type of guys.

So there is some hope for me

Blue Cat

well let's see when it comes to renewal time, I bet you have 4 men (if none of them have lost their jobs) coming and asking if they can pay 35k a year, time will tell......

diablo

well if they still want to live together ... they'll have to move to another 4 bed in JBR or family compound in Barsha ... I ain't giving it for 140k .. I know several families from my old country that lost their jobs (and they are in a far worse situation than most of Western expats) so I'd rather get some good karma helping them until the situation gets better for them. There is always a solution if you look for it.

IndieG

Never underestimate the stupidity of some big banks out here. They refuse to recognise losses and have severely under-provided for bad loans at the moment.....