UAE Central Bank hits the housing market.........
 

:ohmy:

Re: UAE Central Bank hits the housing market.........
 

great news.

Re: UAE Central Bank hits the housing market.........
 

In what way?

http://benchmarkdaily.com/uae-centra...-expats-at-50/

Re: UAE Central Bank hits the housing market.........
 

If we generally regard high (note I have not said moderate) inflation as a bad thing, why are we so excited to see credit fueled inflation in one sector?

The differing LTVs for nationals and expats is also totally logical to cut down banking losses on defaults as expats are more likely to bunk. OK, locals don't pay either but at least (from the banks point of view) they do get paid back, albeit by the government.

Would a UK mortgage provider provide a mortgage to an expat on a work permit I wonder?

Re: UAE Central Bank hits the housing market.........
 

Yes. Theoretically anybody, resident or otherwise, can get a mortgage to buy property in the UK, dependent on certain criteria e.g. deposits etc.

But you can't compare UK housing market to UAE housing market... One is sophisticated, protected and legal. The other is a sham. Difference is, a legal charge (mortgage) is actually a meaningful, registrable and enforceable instrument in the UK. In the UAE it's a joke - like property market.

Just look at the Marks Falcon Real Estate rental scam (amongst others) for further evidence of the immature, naive greed that pervades the marketplace and distorts and perverts the market in the UAE.

Re: UAE Central Bank hits the housing market.........
 

BTW - has this been verified?

Re: UAE Central Bank hits the housing market.........
 

exactly my point.

anyway - as a renter, I'm quite happy to see landlords squeezed on equity requirements.

Re: UAE Central Bank hits the housing market.........
 

I cannot see it that way. Landlords will see this as an attempt to prevent them from borrowing to speculate in real estate - so they will squeeze their existing tenants with higher rents to make up the 'shortfall'.

Anyway - I can tell you that the banks here are shell-shocked this morning at this one..........

[Yes, Dubaiguy, it has been verified and came into effect yesterday :huh: ]

Re: UAE Central Bank hits the housing market.........
 

Ah, let us not forget those that will hit the wall and will accept any cash that comes their way. Prices are set in the margins.

My landlord paid 4.8m for my house. It's worth 2.8 maybe now. Ouch. good luck with that refinancing.

Re: UAE Central Bank hits the housing market.........
 

Dean - is this for existing lending or new lending only?

Re: UAE Central Bank hits the housing market.........
 

I have asked for clarification of that - I cannot believe they will try and bring existing mortgages (which may be as high as 90 pct) under this umbrella.

Re: UAE Central Bank hits the housing market.........
 

Landlords can demand higher rents, but that doesn't mean that tenants can afford to pay. Do you think employers here will just obligingly crank up salaries and housing allowances (where paid) to allow their employees to pay whatever landlords are asking?

In the last year or so before the property crash, many companies - even large ones - were seriously rethinking their hiring policies (or even their location) because rental market prices were just away in fantasy land. A friend who was setting up his own business in early 2008 discovered that it would have been more affordable to base himself in London than Dubai.

ISTR that towards the end of the boom there was a promotion allowing something like 97-98% financing of JBR units, and a friend bought a place in Business Bay with a 100% mortgage.

Re: UAE Central Bank hits the housing market.........
 

Totally agree - I pay more here in rent than I have ever paid anywhere else in the world (although I have just been offered a renewal for another year at the same rent for the third year running). This may simply discourage buying while encouraging renting - surely not an intended consequence?

The Central Bank news has many implications........ I know of one bank who are already thinking of RE-launching a mortgage product following this announcement.

Re: UAE Central Bank hits the housing market.........
 

There is a lender has been offering up to 90%, but there are also a lot of people whose mortgages are more than the current value of the property they bought.

Re: UAE Central Bank hits the housing market.........
 

I doubt it. I think I remember hearing sometime last year that the Central Bank estimated 57 per cent of non-local property ownership was by people who didn't live in the UAE. That's probably increased since the Arab Spring.

It's good news for everyone except the speculators.