Staying in Dubai- Buying vs Renting
Apr 13th 2016, 4:20 am
#16
Confirmed grumpy old man
Joined: May 2005
Location: Moved back to Riyadh KSA 2016
Posts: 1,298
Re: Staying in Dubai- Buying vs Renting
I think I am aright in saying that another consideration is that you are not allowed to do a final exit from Dubai unless all loans and debts are paid.
This would mean that you would have to sell your property before you leave.
This would be compounded and made worse if the value of your property had gone down below the value of the mortgage/loan (as it did around 2007) and you would have to pay off the difference in the loan.
A work colleague bought a villa for around £250,000 in 2007. By 2009 it was worth half that. Luckily she was able to stay working in Dubai until it recovered back to it's original value.
Another colleague has paid the deposit for a property in 2007 using a loan. The property has never been built. They are currently fighting to have the loan wiped as the building is unlikely to happen.
Rent, Rent, Rent, Rent every time
This would mean that you would have to sell your property before you leave.
This would be compounded and made worse if the value of your property had gone down below the value of the mortgage/loan (as it did around 2007) and you would have to pay off the difference in the loan.
A work colleague bought a villa for around £250,000 in 2007. By 2009 it was worth half that. Luckily she was able to stay working in Dubai until it recovered back to it's original value.
Another colleague has paid the deposit for a property in 2007 using a loan. The property has never been built. They are currently fighting to have the loan wiped as the building is unlikely to happen.
Rent, Rent, Rent, Rent every time
Apr 13th 2016, 6:19 am
#17
BE Forum Addict
Joined: Nov 2009
Posts: 3,096
Re: Staying in Dubai- Buying vs Renting
Buy a big boat and live in a harbour...actually a friend of a friend did this an AUH in the silly times of 2007.
Apr 13th 2016, 10:40 am
#18
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Apr 13th 2016, 10:43 am
#19
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Staying in Dubai- Buying vs Renting
Buying here has to be a long term option taken on with your eyes open. Don't believe the hype, property is not immune from risk, and pay attention to what everyone is saying on here. We might know a thing or two about what goes on...
Apr 14th 2016, 11:41 am
#20
peterparker
Joined: Sep 2007
Posts: 196
Re: Staying in Dubai- Buying vs Renting
Well - whose buying all these properties here then?? I think for expats it's mostly Indians, Pakistanis and Brits. in that order. Lots of people buy and sell property here all the time. I bought a property in 2007. If I sold it now for even less than I paid for it I would make money on the currency if converting to Sterling.
Apr 16th 2016, 1:27 pm
#21
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Staying in Dubai- Buying vs Renting
...
No doubt people do make money on it. The point is there are far more risks than buying property in other countries. There are investment professionals in these forums.
I'm glad to hear you could still make money on yours. I know people who have lost a lot on property because speculation and short term gains nature of the region overrides all other considerations.
N.
No doubt people do make money on it. The point is there are far more risks than buying property in other countries. There are investment professionals in these forums.
I'm glad to hear you could still make money on yours. I know people who have lost a lot on property because speculation and short term gains nature of the region overrides all other considerations.
N.
Apr 17th 2016, 6:04 am
#22
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Staying in Dubai- Buying vs Renting
The 30% GBP drop won't be repeated for a while - unless of course BREXIT totally destroys the currency.
Apr 17th 2016, 11:20 am
#23
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Apr 17th 2016, 11:54 am
#24
Forum Regular
Thread Starter
Joined: Feb 2016
Posts: 36
Re: Staying in Dubai- Buying vs Renting
Hmmm..... property prices in central London are becoming un-affordable. Maybe time to buy a cottage on the southern coast of France or Italy.
Apr 17th 2016, 12:53 pm
#25
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Staying in Dubai- Buying vs Renting
No one knows what BREXIT will do.
But I think totally destruction of the currency of the world's 5th largest economy is a rather silly.
There will be short term movements based entirely on sentiment then when people realise the crops haven't failed and babies aren't being born with two heads they will carry on as usual.
Long term it could be very interesting. The UK's trade deficit with Europe is shocking. Being able to trade freely with anyone could close the deficit gap and put the UK on a stronger footing.
N.
But I think totally destruction of the currency of the world's 5th largest economy is a rather silly.
There will be short term movements based entirely on sentiment then when people realise the crops haven't failed and babies aren't being born with two heads they will carry on as usual.
Long term it could be very interesting. The UK's trade deficit with Europe is shocking. Being able to trade freely with anyone could close the deficit gap and put the UK on a stronger footing.
N.
But do not forget September 16th, 1992.
