Go Back  British Expats > Living & Moving Abroad > Middle East > The Sand Pit
Reload this Page >

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

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

Thread Tools
 
Old Dec 31st 2012, 5:40 am
  #1  
Lost in BE Cyberspace
Thread Starter
 
Joined: Jul 2007
Posts: 13,553
The Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond repute
Default UAE Central Bank hits the housing market.........

Attached Files
The Dean is offline  
Old Dec 31st 2012, 5:45 am
  #2  
Lost in BE Cyberspace
 
Millhouse's Avatar
 
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Millhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by The Dean
great news.
Millhouse is offline  
Old Dec 31st 2012, 5:47 am
  #3  
Lost in BE Cyberspace
Thread Starter
 
Joined: Jul 2007
Posts: 13,553
The Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

In what way?

http://benchmarkdaily.com/uae-centra...-expats-at-50/
The Dean is offline  
Old Dec 31st 2012, 5:55 am
  #4  
Lost in BE Cyberspace
 
Millhouse's Avatar
 
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Millhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by The Dean
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?
Millhouse is offline  
Old Dec 31st 2012, 6:05 am
  #5  
BE Enthusiast
 
dubaiguy2011's Avatar
 
Joined: Jul 2012
Location: No longer in Dohell. Thank fvck.
Posts: 359
dubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of light
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by Millhouse
Would a UK mortgage provider provide a mortgage to an expat on a work permit I wonder?
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.
dubaiguy2011 is offline  
Old Dec 31st 2012, 6:09 am
  #6  
BE Enthusiast
 
dubaiguy2011's Avatar
 
Joined: Jul 2012
Location: No longer in Dohell. Thank fvck.
Posts: 359
dubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of lightdubaiguy2011 is a glorious beacon of light
Default Re: UAE Central Bank hits the housing market.........

BTW - has this been verified?
dubaiguy2011 is offline  
Old Dec 31st 2012, 6:12 am
  #7  
Lost in BE Cyberspace
 
Millhouse's Avatar
 
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Millhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by dubaiguy2011
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.
exactly my point.

anyway - as a renter, I'm quite happy to see landlords squeezed on equity requirements.
Millhouse is offline  
Old Dec 31st 2012, 6:19 am
  #8  
Lost in BE Cyberspace
Thread Starter
 
Joined: Jul 2007
Posts: 13,553
The Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by Millhouse
exactly my point.

anyway - as a renter, I'm quite happy to see landlords squeezed on equity requirements.
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 ]
The Dean is offline  
Old Dec 31st 2012, 6:31 am
  #9  
Lost in BE Cyberspace
 
Millhouse's Avatar
 
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Millhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by The Dean
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 ]
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.
Millhouse is offline  
Old Dec 31st 2012, 7:02 am
  #10  
Lost in BE Cyberspace
 
Millhouse's Avatar
 
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Millhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Dean - is this for existing lending or new lending only?
Millhouse is offline  
Old Dec 31st 2012, 9:12 am
  #11  
Lost in BE Cyberspace
Thread Starter
 
Joined: Jul 2007
Posts: 13,553
The Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by Millhouse
Dean - is this for existing lending or new lending only?
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.
The Dean is offline  
Old Dec 31st 2012, 9:25 am
  #12  
Soupy twist
 
Joined: Dec 2004
Posts: 2,271
Eeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by The Dean
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'
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.

I cannot believe they will try and bring existing mortgages (which may be as high as 90 pct) under this umbrella
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.

Last edited by Eeyore; Dec 31st 2012 at 9:31 am.
Eeyore is offline  
Old Dec 31st 2012, 9:31 am
  #13  
Lost in BE Cyberspace
Thread Starter
 
Joined: Jul 2007
Posts: 13,553
The Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond reputeThe Dean has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by Eeyore
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.
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.
The Dean is offline  
Old Dec 31st 2012, 9:36 am
  #14  
Bored liberal
 
Meow's Avatar
 
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Meow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by The Dean
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.
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.
Meow is offline  
Old Dec 31st 2012, 10:11 am
  #15  
You read these things?
 
Joined: Jun 2010
Posts: 1,261
auzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond reputeauzdafluff has a reputation beyond repute
Default Re: UAE Central Bank hits the housing market.........

Originally Posted by The Dean
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.
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.
auzdafluff is offline  


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.