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So, will be it rentmageddon in Dubai?

So, will be it rentmageddon in Dubai?

Old Apr 27th 2014, 12:56 pm
  #31  
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Millhouse
There is a lot of kudos to owning property in Dubai. Much better than T-bills.

Don't forget, 1% yield is probably a loss to equity once the 5% mortgage has been paid.
I can't wait until the day I am making investments based on kudos. Preferably with other people's money.
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Old Apr 27th 2014, 1:16 pm
  #32  
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by weasel decentral
I can't wait until the day I am making investments based on kudos. Preferably with other people's money.
welcome to my dark world
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Old Apr 27th 2014, 1:19 pm
  #33  
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by weasel decentral
Maybe 1 or 2 percent at most, which makes me wonder why most of them are not in fixed term investments or bonds because they will do better without the ballache of renters.
Then again I am making the mistake of applying logic to the middle east.
Too many people are fixated with owning property and just won't believe it could lose them money, despite clear evidence to the contrary. Property has an emotional effect on many and it's very hard to get them to see logic and the potential downsides of an illiquid asset where the legal framework doesn't offer the same protection as elsewhere.

As an example, I've just finished reviewing an investment portfolio I set up for clients six months ago. Monies are invested relatively cautiously and they have achieved a net yield of over 5% since outset. As with property, no guarantees, but we have flexibility and the option for a decent yield if required, without huge levels of volatility.
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Old Apr 27th 2014, 6:35 pm
  #34  
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by MataHari
I am an estate agent...and I am not scum

We don't decide what the rental price of a property is, sometimes a landlord will ask us what we think they should ask, and I will advise him what the current going rate is. I hate landlords who are not willing to negotiate on the asking price, as it makes no sense for them to refuse an offer for 5000 dhs less and wait while the place is empty for the next tenant to come along.

There is a 5% commission, half of which goes to the real estate company. When you have a property through another agent, which happens a lot, 2,5 goes to the other agent, and you get half of half. It really doesnt make a lot of difference in the end to my commission if the rent is 140,000 dhs or 145,000 dhs. If I can negotiate the price down, I will do so.

I have landlords who will suddenly increase the rent when I tell them I have a serious client. I then have to tell this to the client, and that makes me seem like the bad agent. Honestly, it's a nightmare the way some landlords do business. Or landlords who in the final stage of the process suddenly change or add clauses to the contract. Or they suddenly decide that they actually don't want that nice Egyptian family. And I am the one to tell them the good news.

But clients are a pain in the ass as well. They withhold vital info from us, and we end up running around trying to arrange viewings for them, only to find out they have already seen it with another agent, they don't like that building (nice not to say in advance), they just took an apartment with someone else yesterday (nice not to let me know, just spent the whole day calling and emailing to arrange viewings), they turn up late, thus causing the whole schedule to go wrong, making me late for next appointments so my next client will be like oh typical agents, never on time...
I was working for a client the other week, when I spoke to the landlord of a property I thought would be good for him, the landlord told me already 7 agents had called him for this same client...so that's 7 agents working, spending time on the same guy, so 6 will defo not get a deal out of it.
Clients who never call you back after doing viewings, so you have to chase them, you have no idea if they are still looking or can you cross them out.

Anyway, I can go on and on. Yeah, there are really really bad agents around, but there are those that are trying their best, balancing between the requirements of both landlords and tenants.

I really love the job, I love the dynamics, I love dealing with different people, doing lots of things at the same time. It's more than a full time job, but that's fine. But it's not just real estate agents that ruin the market.
I agree with everything you said, and I'm hanging my head in shame right now!

I wasn't aware you were 'one of them' MH. Anyway I based my slightly bombastic statement on the wide-boys (some British and some Arab) I have encountered over the years in Dubai. The problem is of course that if you believe the agent is screwing you then you have no issues screwing them back. Somebody will get burnt..

My landlord gave me notice last year so I'm going to have to find a new place just after the summer. Not looking forward to it at all, but at least there seems to still be some options out there even for us that don't have a huge allowance to blow...
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