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Renting vs. buying property?

Renting vs. buying property?

Old Apr 25th 2005, 1:02 pm
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Question Renting vs. buying property?

What makes more sense in Dubai, buying or renting?
I plan on staying 2-4 yrs and maybe longer. How easy/diff. is to buy, are banks willing to finance, interest rate and terms and all the other stuff.
And what is the property market like? Is property appreciating at the constant rate, is it buoyant/depressed etc.....What do most expats do, buy or rent?
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Old Apr 25th 2005, 1:30 pm
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Default Re: Renting vs. buying property?

Originally Posted by stormer
What makes more sense in Dubai, buying or renting?
I plan on staying 2-4 yrs and maybe longer. How easy/diff. is to buy, are banks willing to finance, interest rate and terms and all the other stuff.
And what is the property market like? Is property appreciating at the constant rate, is it buoyant/depressed etc.....What do most expats do, buy or rent?
Hello Stormer. Welcome to the forum


couldnt have asked a more general question, could ya? LOL

U might have as well have asked how blue is the colour blue? LOLOLOLOL

Pretty evenly spread i'd say. And if ur out on a short term basis, then rent a place mate. Might even work out to be cheaper, depending on where u want to live and more importantly, what u want to live in.

hope that sheds some light on the situation.

Last edited by Face81; Apr 25th 2005 at 1:45 pm.
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Old Apr 25th 2005, 1:50 pm
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Default Re: Renting vs. buying property?

Originally Posted by stormer
What makes more sense in Dubai, buying or renting?
I plan on staying 2-4 yrs and maybe longer. How easy/diff. is to buy, are banks willing to finance, interest rate and terms and all the other stuff.
And what is the property market like? Is property appreciating at the constant rate, is it buoyant/depressed etc.....What do most expats do, buy or rent?

The workmanship on a lot of buildings here is shoddy...the building regulations are a bit slack. So you buy at your own risk. Do I have a point people? It's quite an interesting topic to discuss further..
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Old Apr 25th 2005, 1:53 pm
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Default Re: Renting vs. buying property?

Originally Posted by Face81
couldnt have asked a more general question, could ya? LOL

U might have as well have asked how blue is the colour blue? LOLOLOLOL

Pretty evenly spread i'd say. And if ur out on a short term basis, then rent a place mate. Might even work out to be cheaper, depending on where u want to live and more importantly, what u want to live in.

hope that sheds some light on the situation.
OK, I got the message!
What do you consider short term? 2-3 yrs. R u renting?
Idealy I need 3bdr villa in 'normal' 'hood, with some ground. From all the posts median rate for something like that is 80k per annum. I've seen all the new developments on the web but they seem to go for 100 to 120k. That seems to be a bit on a high side.
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Old Apr 25th 2005, 1:56 pm
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Default Re: Renting vs. buying property?

Stormer,

There are numerous views on both sides of choices you have presented, and whilst I rent and will continue to do so for the foreseeable future I am sure there will be others that will want to buy asap and feel comfortable doing so. From my side the some of reasons for staying in rented accommodation are (but not limited to):

Currently you do not own the land only the property on it, the land is leased on a long term lease (normally 100 years).
A house built on a foundation of sand does not fill me with confidence.
The housing market for expats is still fairly new over here and so there are still issues with mortgages / banks etc that would require clarification before I would commit to anything.
For the period I am intending being here I would rather invest the money, rather than go through the hassle of buying a property and then selling it again in 3 or 4 years when I move on.
Build quality is not awe inspiring in a number of the properties I have seen.
Continuous development means that what currently may seem to be a nice area could be in the middle of an industrial area in a couple of years

But then some other people will argue that the market is buoyant at the moment and there is a large % profit to be made for a relatively short term investment.

To be honest the best bet is to discuss it with as many people as you can, an independent financial adviser or accountant. To date the best advice I have heard is that if you are buying as your only home and can’t afford to take a risk then don’t, if however this would be a second home and you can afford the loss should it occur then you need to be aware of the risks but could commit…

Sorry mate but like Face said there are so many different factors to take into account….
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Old Apr 25th 2005, 2:00 pm
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Default Re: Renting vs. buying property?

Originally Posted by samireh
The workmanship on a lot of buildings here is shoddy...the building regulations are a bit slack. So you buy at your own risk. Do I have a point people? It's quite an interesting topic to discuss further..
What do you mean by shoddy?
Is the fininshing shoddy or is it structuraly bad? Or both?
Did you get your fingers burnt?
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Old Apr 25th 2005, 2:00 pm
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Default Re: Renting vs. buying property?

Originally Posted by stormer
OK, I got the message!
What do you consider short term? 2-3 yrs. R u renting?
Idealy I need 3bdr villa in 'normal' 'hood, with some ground. From all the posts median rate for something like that is 80k per annum. I've seen all the new developments on the web but they seem to go for 100 to 120k. That seems to be a bit on a high side.
lol........ I dont rent, well not personally anyway. My rents' rent and I live with them.

You should be able to find what u r after in that sort of budget range.

My advice, dont go thru an agent. Drive around and take down tolet #'s urself and then negotiate directly with landlords.

oh and I appologise if i came across a tad sarcastic.
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Old Apr 25th 2005, 2:01 pm
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Default Re: Renting vs. buying property?

Originally Posted by stormer
Idealy I need 3bdr villa in 'normal' 'hood, with some ground. From all the posts median rate for something like that is 80k per annum. I've seen all the new developments on the web but they seem to go for 100 to 120k. That seems to be a bit on a high side.
Depends where you want to be, if you want to be central or in the beach area then 100 - 120k for a 3 bed villa isn't to bad. If you are willing to move out a bit to somewhere like Mirdif then a 3 bed will cost you about 70-80k for a new one...
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Old Apr 25th 2005, 2:05 pm
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Default Re: Renting vs. buying property?

Originally Posted by Welivehere
Sorry mate but like Face said there are so many different factors to take into account….

Ooooooooooooooooooh....... get you! LOL

Quite the expert! I am glad I wasnt the one that had to explain that in text form.... and u say u have a fulltime job in real life?

u r right bout the other factors though.
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Old Apr 25th 2005, 2:07 pm
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Default Re: Renting vs. buying property?

Originally Posted by Welivehere
Depends where you want to be, if you want to be central or in the beach area then 100 - 120k for a 3 bed villa isn't to bad. If you are willing to move out a bit to somewhere like Mirdif then a 3 bed will cost you about 70-80k for a new one...
dont 4get the 10-20% potential rent rises each year........ no matter where u r. :scared:
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Old Apr 25th 2005, 2:10 pm
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Default Re: Renting vs. buying property?

Originally Posted by stormer
What do you mean by shoddy?
Is the fininshing shoddy or is it structuraly bad? Or both?
Did you get your fingers burnt?

The buildings go up far to quickly for there to be any safety regulations...ask any professional and they will tell you...I suppose im talking about the structures...you go away for a few weeks and come back and theres a new villa put up opposite yours!! Come on....that's dodgy and you dont need to be an architect or engineer to know that.
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Old Apr 25th 2005, 2:11 pm
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Default Re: Renting vs. buying property?

Originally Posted by samireh
The buildings go up far to quickly for there to be any safety regulations...ask any professional and they will tell you...I suppose im talking about the structures...you go away for a few weeks and come back and theres a new villa put up opposite yours!! Come on....that's dodgy and you dont need to be an architect or engineer to know that.
the 24/7 work schedule is to blame for that. Perfectly safe. trust me.

cracking walls are another thing........
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Old Apr 25th 2005, 2:15 pm
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Default Re: Renting vs. buying property?

Originally Posted by Face81
and u say u have a fulltime job in real life?
Quiet'ish day...
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Old Apr 25th 2005, 2:18 pm
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Default Re: Renting vs. buying property?

Originally Posted by Welivehere
Quiet'ish day...
must be very quiet! U have been on here all afternoon.

thats ok though........ so have I! :scared: well i am ahead of schedule.... need lunch soon though
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Old Apr 25th 2005, 2:21 pm
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Default Re: Renting vs. buying property?

Thanks Welivehere!
To put all this into perspective; I live(d) in Cape Town for the last 5yrs and I bought the house as soon as I landed. Since than the property in SA in general has at least doubled in value and at the same time rand (SA currency) appreciated by 20-30% vs. $. If i was to sell my house now I'd make some seriously handsome money purely by luck and good timing. If you look at the other countries (UK, Irl, Aus) long trend (10yr +) in the property is always up. There might be few hiccups along the way (like UK now) but ultimately unless you buy the house in sh*t 'hood you'll either break even or score at least some small profit, cause which ever way you look at it you got to pay someone every month.. My problem is that Dubai is a bit of an unknown at the moment, so yes, proceed with caution but do the homework properly and than decide.
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