Norm_uk

That's good - scrimp and save to buy a place then when it's finished you can't move in without paying another four and a half thousand quid for "service" charges.

I believe in Europe most of us pay our property related taxes in installments...and I never of anyone forking out four grand on a one bedroom flat in the UK for tax, upkeep charges etc when it's brand new!

N.

Madam Medusa

yeah, but it's not like you don't know the score here...

MM, xx

Dutchie

There was an interview on Dutch TV here a few days back with this couple that returned from the UAE stating the same thing, being kicked out of apartments or accepting ridiculous rent increases time after time again. Made me really laugh seeing the UAE ambassador just simply deny it as false rumors being spread around by greedy expats.

Eeyore

He outright denied that that kind of thing happens?

They clearly realise it's a problem they need to keep quiet, then.

Norm_uk

Actually it's a lot like that for some people. Rules change here at a whim and it can be hard for some people to adjust quickly to them.

Paying for ongoing services annually in advance makes no sense anywhere else in the world.

N.

Norm_uk

Greedy expats? That's a nice thing to say about the people who keep his economy running and ensure his people can get extortionate rent money paid annually in advance!

N.

Madam Medusa

i don't buy that norm...there are service charges with any apartment block, as far as i know, the same in the uk...you must be bloody stupid if you didn't ask what they are and what the payment structure is before you bought...

i agree paying annually doesn't make sense, but if that's the deal with the apts in the old town, then that's the deal...it hasn't changed as far as i know...

MM, xx

Robbies

Seems to be the case that in the 1st year, service charge payments are due in advance (ie all at once), then it goes to monthly/quarterly from the 2nd year.

Its probably a way to ensure there are funds in an account to pay the various service companies from the start.

Simao

Wow I had no idea service charges are that expensive!! But your friend should take a loan I don't think it would be that difficult to get it. It's true though that paying this amount in advance is just plain nonsense. I remember when my friend used to pay that same amount for rent like five or four years ago and his place was great.
To Dutchie, haha the ambassador's response is so typical. I mean seriously, you can read about this housing problem everywhere in the newspapers here or the Internet or TV you can't just deny its existence. Officials here tend to always say "everything is fine, there are no problems" and you can just see that there are million problems that need to be solved.

Charismatic

The former Iraqi Information Minister found a new job then?

Eeyore

No it wouldn't, but that's not the point.

admon

I and a few others seem to disagree with the point that you are making.

Emaar appeared to have made no secret of the service charge rate they intended for old town, so if the person cannot afford to pay it, then it is not best financial planning from that person.

Anyone going into a property purchase should have their eyes clearly open and as this person has friends such as yourself who know much about the market and costs here, that person should have perhaps considered taking more advice before committing to purchase.

Eeyore

My friend tells me that he was not told the service charge rate when he bought - he says he asked, but was told it had not been decided (which is obviously not uncommon, years before completion). He further says that there was no communication from Emaar about it until just recently, and that if he'd had an inkling of the true size of the charge, he'd obviously have made provision for it.

ISTR a similar situation obtaining in respect of JBR, with a figure not being made available until just before the towers were released, and people having to guesstimate up till then.

Another friend, who bought at South Ridge, reports being taken aback by the size of the service charge bill being demanded before he can move in. I doubt these two people are the only ones getting nasty surprises.

Dutchie

Yes, when a reporter asked him about the many (empty) houses that are bought by UAE locals as a so called investments. And landlords that apply 40 to 80 percent rent increases per year. His quote "In very rare occasions this happens, mostly rent increases in the UAE are less then those in the EU." end quote. And when asked if he knew about the 1% law he simply walked away...

Border Reiver

Some so called diplomats really should be kept away from reporters. Maybe he has been out of the country so long he has lost touch with the new reality of Dubai?