Post Summer Dubai
 

So, is everyone back to it now?
Back at work?
Manage to have a good summer?
Family back? Survive being alone?

Things seem quite sleepy still, I managed to drive along SZR the other night at rush hour and not struggle too much. Golf course was empty at the weekend as well.

Work seems slow, we keep getting snippets of positive and then boom, project cancelled. Ironically the snippets and booms come from the same client.

Some unbelievable deals on buying property are being thrown around by brands you don't expect to get deals from - some go up to 10yrs no annual fees, 5yrs no mortgage payments etc etc etc.

Who is busy?
What do we think to the end of the year?

Re: Post Summer Dubai
 

Schools back on Sunday - I think the city will fill up this weekend...

The house offers are nuts. I'm actually considering buying something simply on the basis that I'm going to be here a little longer, it's much cheaper than anything in the UK on a sq.ft basis and if in 5 years it's worth nothing I can write it off and it'll cost me around the same as I was paying in rent 4 years ago.

Re: Post Summer Dubai
 

I'm with you there.

Close to 650k in rent since I've lived here (i bet some people's calculations will be horrifying). That's over half what the same apartment would have cost if I bought it on day one.

Re: Post Summer Dubai
 

Close but not quite. You'd have "lost" around 400k in interest on a mortgage over the same period, so your net loss is only 250k... I'm at around 1.6m in rent paid to date....

My purchase budget is 1.7m. The mortgage on that is around 85k a year, my rent in 2012 was 180k - my deposit and fees is 450k. So, basically over 5 year the cost will be (85 * 5 + 500 = 920). This compares to my 2012 rent of (180* 5 = 900). So basically, even if I walk away from it in 5 years time, it would have cost me what I used to pay in rent for the same place. I survived in 2012 quite happily and in fact I earn more now, so nothing to lose.

Re: Post Summer Dubai
 

Sorry, I should have put the caveat that I was ignoring interest.

Does the 450 / 85 include annual maintenance / fees / insurances etc or just land department / mortgage fees at set up?

Re: Post Summer Dubai
 

Assuming everyone is doing the same calculation, I'm guessing there should be a huge glut of rental properties on the market and in fact the rent over the next few years will drop considerably so there is that to lose.

Re: Post Summer Dubai
 

That's the opportunity cost though I suppose.

The way to win is for the market to tank but you be very, very secure.

Then you wake up.

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They come with very high rental prices it seems, which is probably out of alignment with what else you can get of similar size etc.

Also, the traffic there means you'd never actually get home.

Re: Post Summer Dubai
 

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Yeah and it's very expensive rent for what it is around there - ie: potentially seen as not great value for money from the renters perspective.
The traffic round there can be atrocious - ie: not very good from the renters perspective.

Re: Post Summer Dubai
 

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take the rent
minus the service charge
divide that number by the purchase price (including all transaction taxes)
multiple that number by 100

If the number if less than 6.5 then don't do it.

Re: Post Summer Dubai
 

Can non-nationals even buy in Citywalk?

Re: Post Summer Dubai