Quote:
Originally Posted by Elphaba
I agree with Sgilli's comments, but would add some others.
1. Property is an investment and as such there is no guarantee that it will go up in value. It could fall in value too.
2. The UAE is NOT the west. Non-Emirati ownership is relatively new and you do not have the same security of tenure as elsewhere. Remember this is not a democracy and laws can, and do, change overnight.
3. The mortgage market is restrictive - lenders have panels of developers. Most mortgages are in UAE Dirhams with interest rates of around 8%. Deposits are required of between 10 and 20% depending on the development.
4. A major international bank, that was lending no higher than 70% loan to value (and in assorted currencies) has just pulled out of the market. This will be for good reason.
5. Build quality frequently leaves something to be desired.
Have you not considered that there are reasons why many people don't buy?
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1, I accept this as a given. However as a medium to long term play I would not be bothered with capital value in the short term as long as yield covered liability
2, This is probably the most interesting as in terms of event risk it has the most risk attached, given that it is a complete unknown. What is the position of tenure?
3, Who are the main players? My understanding was that the entrance of high street names i.e. Barclays etc was making market more competitive?
4, Can you name names?
5, I am not saying necessarily that I am right or wrong, purely interested in the debate and to understand where the statement 'don't buy' comes from