Millhouse

Is it Sheikh Mymoneybox?

Millhouse

spot on. It will sit in the banking system... it won't go into property locally. It may help free up some lending constraints for projects but every project needs equity as well as debt and no one will put any equity in.

I would also imagine that the influx of money is a piss in the ocean compared to what left the banking system here in 2008 when institutions stopped speculating on the currency peg.

shiva

i didnt but chances are they were up to their eyeballs in mubarak crap so getting money out of egypt and hidden will be their big concern now if they were tied to the last regime.

of course there is a distinct posibility that the next regime will be worse and it may all be the reverse of what i said above. if i had to put money on it id say better not worse but it is egypt.....

Dubaidog

I believe that if you buy now you risk losing a bit, but over 5 years it will be insignificant. Villas on established communities are probably a better bet than appartments, esecially if you want to rent out. When you look around the region there is nowhere that offers what the UAE can in terms of lifestyle.

I believe that very few folks from the West really enjoy living in Saudi, Kuwait, or Qatar - they are there to fill the money bucket - and tolerate the conditions while they do it. I have lived in them all + a few more, so I have some experience.

The current "Business freindly Bahrain" situation is only going to drive the remaining corporates to relocate here.

typical

I can't believe it still costs 7-800,000 for a 1 bed apartment in the Marina.

Meow

Of course the other issue is whether you really believe you truly have absolute ownership of a property in the UAE. Freehold here is not the same as in the West.

Autonomy

The initial idea was rent vs paying off mortgage.

For example:-

On a 1.6m dhs apartment, negotiate down to 1.4m, 400k deposit, mortgage on 1m dhs.

8% 20yr mortgage is about 8,100dhs per month

This is a saving of approx 2,000dhs per month on rent.

After 5 years you would have paid off about 150,000dhs capital, owing 850,000dhs. Plus saved 114,000dhs against rent therefore 736,000dhs owed.

However if you just look at the capital reduction of only 150,000dhs (15% of the loan) in five years if the property only dips say 10% in five years then you're out of pocket after fees, service charges etc

So for a slim margin like that plus all the other factors mentioned above - to answer my own question - it's not worth it...

Millhouse

Don't forget services charges... One bed flat - probably 24k AED / year. If you pay them of course

The Dean

All that money that you lot are referring to isn't going anywhere productive - it's sitting in deposit accounts waiting for the next opportunity.......

.......... which WON'T be in real estate, as I hear a rumour that a number of banks have told their branches that real estate/housing/construction projects will NOT be considered as suitable vehicles for lending in the next few years.

Sandboy

exactly what my bank told me, it's going to be a while

shiva

leaves them a bit screwed then as thats how they make money from consumers

Blue Cat

after five years you my well have an asset that is worth bot all as well, be careful