Jimmeh

Hi all,

I am in the process of negotiating a package for a role in Dubai I am interested in.
They are not offering to pay for accomodation nor are they willing to provide me with a loan upfront for accomodation. Is this as ridiculous as it sounds?

Also, what are the usual interest rates for a 130,000 AED loan in Dubai?

Any help much appreciated.

still.unsure

would seriously reconsider accepting a job offer anywhere in the gulf where your employer won't help you with accomodation. by all reports its an absolutely nightmare to sort out, even indicated by the number of threads here dealing with the topic. are they not even giving you a monthly allowance towards it?

Jimmeh

No help with accomodation whatsoever. The salary is good but the package is not.

Saj786

what sort of job have you been offered and what industry? from the research I have done, most companies do offer an allowance towards accomodation.

IndieG

Depending on your employer and salary, could be between 10-13%. If you are joining a large local group or a multinational then you wont have a problem getting a loan (once your employment visa is stamped).

Your salary better be really good if your employer is not willing to help with accommodation at all!

TBird

....Forget it, have a look at the wiki it will show you costs of living. Accomodation is a huge one.

busybee2

yep but a lot of companies now just give you a 'big' lump sum each month for one then they dont have to keep adjusting allowances with day to day inflation and second it has something to do with the gratuty at the end of the contract as well.

Eeyore

Not these days, sadly. Fewer and fewer companies offer those sorts of perks - it's a case of "here's a lump sum and sort yourself out, take it or leave it".

Probably about 8-9%?

Just doing a rough calculation, you'd need to earning a minimum of about 24,000 dhs per month in order for a bank to allow you to borrow 130k over 12 months. The usual formula is that monthly payments must not exceed 50-55% of your monthly income. Otherwise, they'll insist you pay your year's rent over more than a year.

Paying rent a year in advance is a ludicrous system and it'll probably have to change before too long. Not that there's any actual legal requirement to pay your rent a year in advance, but it's such an entrenched thing here that it will take the introduction of a new law forcing landlords to accept monthly payments before they will drag themselves into the modern world.

IndieG

Oh no - banks are throwing silly amounts of money at people here. For e.g if he is earning just AED 9000 and is working in a large local group/multinational, he can get up to AED 250,000 payable over 72 months @ 10%!! Nightmare

Eeyore

Interesting - some new people at work who have no choice but to get a bank loan to pay their rent (our company is large and makes a profit but doesn't offer anything approaching a full housing loan - you can get 30k upfront, that's all) were forced to take it over 18 months because their banks refused to lend them the amount they wanted over just 12 months. These are people earning about 20k a month.