still.unsure

value is what the market will pay. if you set the price at $1 and no one buys it, the property isn't worth $1. (that's the whole problem of market pricing with the CDO', Swaps and stock market.) if you're house has been devalued by 10% and no one will buy it, sorry my friend, but it's worth less than the 10% devaluation...

(see the refs. to dubai above - it is ME related)

diablo

Of course not; the annual gains were driven by speculation and desire by many to make a quick profit. It had to crack somewhere but I would not expect this big if there was no a global crash.

I think that the gain from 2003 to 2005 was reasonable because the initial prices of properties were more than reasonable for the value. From 2005 onwards I think we got all sort of people pouring into Dubai looking for a quick gain.

My personal opinion is that the prices right now are not right either - they should be higher and they will come back to reflect the market value.

Hello.Kitty

yeah, the big difference with the UK is that the population is pretty stable, so property demand is pretty stable.

Trying to highlight the fact that the UK property market is not doing too well in order to make Dubai look better is just nonsensical (and rather petty) - there are so many other factors involved that the two can hardly be compared.

diablo

And who did try that

Aikman7981

When I claimed this thread had nothing to do with the ME I meant as it was started. The initial post has no relevance. Just a bunch of links to bloggers crying about real estate in the "western" world.

I know Diablo is the resident Dubai PR specialist so anything he says is automatically taken in that context. We don't have to make his job easier.

I stand by my statement of 10% devaluation. The real difference is instead of 2 weeks to sell it might be 2 months but sell it will.

Blue Cat

10% - you are way wrong there, 42% was the last statement if I remember rightly.

Ethos83

I believe you did. Check out your first post on this thread.

Aikman7981

I'm referring to my house in the US. My neighborhood has been affected less than some. 42% for Dubai I do not dispute.

still.unsure

the ME relationship was to "balance" the picture of how rubbish it was in dubai. kind of a "well, if i'm wrong, see! he's wrong too!" school playground thing. typical of diablo as you've already noted.

i admire you're confidence in the price devaluation and i certainly hope you succeed with your house. am a firm believer that the value of an asset should be based upon what the market will bear at a given point in time, especially when liquidating capitalized assets such as housing or other immovable investments. if we were to hold to the idea that the value of an asset is what it can be at some future time, (i.e. it'll sell for 10% less but in 2 months time), then we can nearly equally say that the asset will be worth 25% more in 5 years time. if it's devalued at 10% today, and you were to liquidate it today and it didn't sell (seen as overvalued by the market), then it's worth less (whatever the figure) than the 10% devaluation. (as you can see, i hate future's!)

Blue Cat

sorry that was me getting things muddled up.

Aikman7981

still.unsure: I'm actually not selling my house thank god!

Nor would I in this climate unless driven to do so as so many are.

Point taken RE market valuation.

Do the villas in Dubai hold up well? Someone (Commander perhaps?) once said that homes here have a life expectancy of 15 to 20 years. I can see this every day here in Al Ain with villas maybe 10 years old. So if the market picks up in 2 to 5 years and property regains value, will any of these current develoments look appealing to prospective buyers? Or will they all show huge cracks in the stucco and the shoddy workmanship really showing through? I'm basing this on Al Ain construction which could be vastly different, or not.

lionheart

An interesting point made somewhere in the quoted articles is that, whereas loose lending policies by banks have pushed USA house prices up to six times average salaries, in the UK they are currently at nine times, so there may be more downside to come. Incidentally, are there any websites specifically advertising discounted UK properties offered by developers? Also, foreclosure sales are well advertised in the USA but those in the UK seem to go to public auction, which would be difficult for those over here to attend. Just curious as I would like to get a foothold in the UK housing market some time this year and none of the general real estate web sites offer anything interesting.

W10

House prices have fallen 40 plus per cent in THREE MONTHS!

How can you compare that to the UK situation...(which itself isn't great)

Shat Fink

Well i've been looking to buy in the Uk too albeit for a a house i will live in a few years time, therefore i've been quite specific about the area and type of house. I'm no expert by a long way but have been studying my local area and noticed that cheaper good houses are still selling if the price is reasonable and asking prices have certainly leveled off.

I've had an offer accepted on a 3 bed detached new build at £174k which is 10% less than the asking price and 25% less than the identical house next door sold for last year. I have no idea if this is as cheap as houses there will go but all the houses in the development are now sold, six last year and the last two this year.

I think it depends what you want the house for. I personally want to live in it in a few years time, so its a house i want in an area where i grew up, for me its well worth it. Its a well priced house that i want. I think if i was looking for investment i would buy flats in a more affluent area as the rental return would be greater.

diablo

Have we met? What you will find very 'typical' about Diablo and his 'school playground thing' is that he is f****** short tempered and does not offend or use any offensive language unless provoked to - and he is 'typically' easily provoked. So be warned.

The ME relationship was NOTHING to do with "balancing" the picture as would be so typical of me. The whole point was to reflect the way some of the threads are made here recently. Find some 'sensational news' - put the link and make a face and expect that it proves the point.

That was all.