The property apocalypse draws closer...
May 12th 2007, 4:35 pm
#421
Joined: May 2007
Posts: 317
Re: The property apocalypse draws closer...
No I did no mean villas. A friend of mine is paying a 2 bed apartment in Greens for AED 150,000 per year! You still can find such apartments for less and up to AED 1,500,000.
May 12th 2007, 4:47 pm
#422
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: The property apocalypse draws closer...
EMI: 15,200 /14,759 Rent: AED 12,500
Maintenance costs: ?? AED 12 per sq ft??
Municipality taxes: ??
Insurance cost: ??
Repairs: ??
plus the one-off buying costs........
So how does he cover costs
May 12th 2007, 4:49 pm
#423
Why No Clock ?
Joined: Feb 2007
Location: Moving On...
Posts: 21
Re: The property apocalypse draws closer...
Does anybody have any anecdotal tales from people who have bought properties who are now desperate to sell out of fear or worry?
I have heard a couple. They mostly relate to people who have bought villas that have gone up so much in value that they have become a huge percentage of their net worth. It's scary to think (not of a property apocalypse) but of something bad happening to the property (force majeur) that would reduce it to it's initial, insured value (ie., the off-plan purchase price). The way I see it, it's a take the money and run, sorta thing.
I often read property blogs etc and it always comes down to the same thing: people who bought 3 or 4 years ago and reaped the rewards vs people who didn't and are now being gouged on rentals.
I have heard a couple. They mostly relate to people who have bought villas that have gone up so much in value that they have become a huge percentage of their net worth. It's scary to think (not of a property apocalypse) but of something bad happening to the property (force majeur) that would reduce it to it's initial, insured value (ie., the off-plan purchase price). The way I see it, it's a take the money and run, sorta thing.
I often read property blogs etc and it always comes down to the same thing: people who bought 3 or 4 years ago and reaped the rewards vs people who didn't and are now being gouged on rentals.
May 12th 2007, 4:52 pm
#424
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 6,596
Re: The property apocalypse draws closer...
Does anybody have any anecdotal tales from people who have bought properties who are now desperate to sell out of fear or worry?
I have heard a couple. They mostly relate to people who have bought villas that have gone up so much in value that they have become a huge percentage of their net worth. It's scary to think (not of a property apocalypse) but of something bad happening to the property (force majeur) that would reduce it to it's initial, insured value (ie., the off-plan purchase price). The way I see it, it's a take the money and run, sorta thing.
I often read property blogs etc and it always comes down to the same thing: people who bought 3 or 4 years ago and reaped the rewards vs people who didn't and are now being gouged on rentals.
I have heard a couple. They mostly relate to people who have bought villas that have gone up so much in value that they have become a huge percentage of their net worth. It's scary to think (not of a property apocalypse) but of something bad happening to the property (force majeur) that would reduce it to it's initial, insured value (ie., the off-plan purchase price). The way I see it, it's a take the money and run, sorta thing.
I often read property blogs etc and it always comes down to the same thing: people who bought 3 or 4 years ago and reaped the rewards vs people who didn't and are now being gouged on rentals.
I do know personally, of a couple who sold their emirates hills villa for a 40% increase.
In 2 years.
FACT
May 12th 2007, 4:55 pm
#425
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Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: The property apocalypse draws closer...
Not anecdotal but real
I got this mail yesterday :Snip Snip - if you didn't read it, PM me for the text....
FACT
Last edited by IndieG; May 12th 2007 at 5:10 pm. Reason: FACT ;-)
May 12th 2007, 4:56 pm
#426
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 6,596
Re: The property apocalypse draws closer...
Not anecdotal but real I got this mail yesterday :
I have put this on sale for AGES. No one wishes to buy our floor or even some of our units. I am going on Sunday to request our money back and will be taking an attorney with us. Can you provide any contact details on this?
I got this mail yesterday :I have put this on sale for AGES. No one wishes to buy our floor or even some of our units. I am going on Sunday to request our money back and will be taking an attorney with us. Can you provide any contact details on this?
May 12th 2007, 5:04 pm
#427
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Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: The property apocalypse draws closer...
They speak to me...........
MJC, I'm not denying that everyone who bought early on in certain developments have made money. But people have also lost money on dud property investments in Dubai. This is a fact and just because you don't see it in the papers, does not mean it didn't happen.
MJC, I'm not denying that everyone who bought early on in certain developments have made money. But people have also lost money on dud property investments in Dubai. This is a fact and just because you don't see it in the papers, does not mean it didn't happen.
May 12th 2007, 5:09 pm
#428
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 6,596
Re: The property apocalypse draws closer...
They speak to me...........
MJC, I'm not denying that everyone who bought early on in certain developments have made money. But people have also lost money on dud property investments in Dubai. This is a fact and just because you don't see it in the papers, does not mean it didn't happen.
MJC, I'm not denying that everyone who bought early on in certain developments have made money. But people have also lost money on dud property investments in Dubai. This is a fact and just because you don't see it in the papers, does not mean it didn't happen.
And the government is amazingt!
XX
May 12th 2007, 5:19 pm
#429
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Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: The property apocalypse draws closer...
Hey, did you read this comical article:
http://www.khaleejtimes.com/DisplayA...section=theuae
The boom, he says, is here to stay. The observation, coming from someone who has seen the boom from very close quarters, makes it all the more convincing.
I do believe the government PR machinery is amazing..........
May 12th 2007, 5:21 pm
#430
BE Enthusiast
Joined: Oct 2006
Posts: 537
Re: The property apocalypse draws closer...
If you go back and look posts you'll find that Pearl was brought in as to prove a point of JBR 'failure' so to speak. So I answered - I dn't know abot that one? Than you used the same argument (Pearl) to emphasise that 'I have no idea'. So that is the reference to JBR. Read a bit deeper and furrther back than immediate response.
I brought the Pearl into the discussion to support my argument that all is not as gung ho as it is being made out to be and failures are seldom reported. I find it odd that the developer Omnix should ditch a project because it was not economically viable and obtaining financing is getting increasingly difficult. I have serious doubts about Sports City being completed by 2010, if at all. I only hope that your investments are not off-plan, or if they are, you have done your homework on the promoters, their past projects etc. If you've bought a couple of years back, then you have nothing to worry about - even if there is a significant correction. You would have still made a tidy sum. My advice is more relevant to investors (with very little equity, taking huge mortgages) getting into the market now
Give us the figures and conclusive evidence of what you are stating. Give us the report / reference number; attach the reports.
I have detailed demographics and statistics - will email it to anyone who is interested.
There is no right and wrong in this debate, it is all about looking at both sides of the coin and then letting the investor making an informed decision - this is a highly personal decision. So let's all keep it civil please
I brought the Pearl into the discussion to support my argument that all is not as gung ho as it is being made out to be and failures are seldom reported. I find it odd that the developer Omnix should ditch a project because it was not economically viable and obtaining financing is getting increasingly difficult. I have serious doubts about Sports City being completed by 2010, if at all. I only hope that your investments are not off-plan, or if they are, you have done your homework on the promoters, their past projects etc. If you've bought a couple of years back, then you have nothing to worry about - even if there is a significant correction. You would have still made a tidy sum. My advice is more relevant to investors (with very little equity, taking huge mortgages) getting into the market now
Give us the figures and conclusive evidence of what you are stating. Give us the report / reference number; attach the reports.
I have detailed demographics and statistics - will email it to anyone who is interested.
There is no right and wrong in this debate, it is all about looking at both sides of the coin and then letting the investor making an informed decision - this is a highly personal decision. So let's all keep it civil please
I'd be interested to see the stats you have - [email protected]
Thanks
May 12th 2007, 5:22 pm
#431
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 6,596
Re: The property apocalypse draws closer...
I believe the negative things at least..........
Hey, did you read this comical article:
http://www.khaleejtimes.com/DisplayA...section=theuae
The boom, he says, is here to stay. The observation, coming from someone who has seen the boom from very close quarters, makes it all the more convincing.
I do believe the government PR machinery is amazing..........
Hey, did you read this comical article:
http://www.khaleejtimes.com/DisplayA...section=theuae
The boom, he says, is here to stay. The observation, coming from someone who has seen the boom from very close quarters, makes it all the more convincing.
I do believe the government PR machinery is amazing..........
May 12th 2007, 5:31 pm
#432
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: The property apocalypse draws closer...
Why will growth not stop? It did stop in 1997-99. Please tell me what exactly will the government do and how?
May 12th 2007, 5:35 pm
#433
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 6,596
Re: The property apocalypse draws closer...
Think about it
May 12th 2007, 5:36 pm
#434
Lost in BE Cyberspace
Joined: Dec 2006
Posts: 23,434
Re: The property apocalypse draws closer...
I'd be interested to see the stats you have - [email protected]
Thanks
Thanks
But seriously,the whole real estate industry doesn't have any ethics or moral compass...They're just seeing how the landlords are shafting the tennants for years now and no higher power is doing anything to stop it,so,in their turn,they are also fuelling the greed train and having a free hand to do what they want...
Just show me who got arrested for swindling peoples' money or was extradicted after being found out...
May 12th 2007, 5:46 pm
#435
Joined: May 2007
Posts: 317
Re: The property apocalypse draws closer...
Well you have a number of points there but I'll have to go back. There are 2 beds of 1300-1400 sqft in JBR at some AED 1,200,000-1,400,000. My argument is that a flat in JBR is a better value than in Greens so the rent should be as a minimum as there and very likely higher than that (this will be tested very soon). Also you should be looking for 20 years mortgage (residents of Dubai) or even interest only if you are counting on capital gain. Minimum deposit for most of banks is 20% so your borrowings are about 1,200,000. The maintenance costs and municipality say AED 25,000 and mortgage fees AED 10,000. First year - repairs free. This brings your cost of some AED 13,500 per month. So if you rent that apartment for AED 165,000 you are just about there.