buy or rent?? please help

catmul777 · #1 (**permalink**) 19th September 2009, 09:50 PM

Hello,

I hope you can help me with this....

Why is it most expats seem to rent property in dubai, and not buy. Is it generally to do with the 20% deposit that is required when you buy, and also the fact that it can take longer to sell? Is that it?

I would like to buy as renting a villa is extremely expensive, when you get nothing in return. I dont like the thought of paying someone elses mortgage, when for the same price i could be paying my own!

I think there must be more to it. Can anyone help?

Thanks in advance.

Anna returning · #2 (**permalink**) 19th September 2009, 10:25 PM

Quote:

Originally Posted by catmul777

Hello,

I hope you can help me with this....

Why is it most expats seem to rent property in dubai, and not buy. Is it generally to do with the 20% deposit that is required when you buy, and also the fact that it can take longer to sell? Is that it?

I would like to buy as renting a villa is extremely expensive, when you get nothing in return. I dont like the thought of paying someone elses mortgage, when for the same price i could be paying my own!

I think there must be more to it. Can anyone help?

Thanks in advance.

I thought briefly about buying. My reason for not, is basically the uncertainty of buying in a foreign country where things can change without notice. Laws here can change literally overnight, and as unlikely as it may seem, we could all be kicked out without prior warning, losing everything! Weren't the residency laws for overseas property owners changed suddenly just recently?? - Just an example of how the goal posts can be moved in the blink of an eye. (Having said that plenty of expats have bought and presumably feel happy to have done so).

flossie · #3 (**permalink**) 20th September 2009, 05:22 PM

I would never, in a million years buy here. Lack of transparency, rules changing on a whim, substandard building quality, transient population, no laws to protect you in the event of job loss etc, etc.

marc · #4 (**permalink**) 22nd September 2009, 05:52 AM

yeah but that's the risk you take for getting the best YOY returns and ROI in the world.

flossie · #5 (**permalink**) 22nd September 2009, 06:00 AM

Quote:

Originally Posted by marc

yeah but that's the risk you take for getting the best YOY returns and ROI in the world.

Spoken like a real estate agent.

YOY returns? I guess you're not counting last year then?

marc · #6 (**permalink**) 22nd September 2009, 06:03 AM

haha lol, true - but its still very good, people who got burnt were complete idiots with no sense at all, who bought knowing they cant afford the 2 nd payment...

Elphaba · #7 (**permalink**) 22nd September 2009, 07:13 AM

Don't be surprised if property prices fall further in Dubai. The fundamentals still do not look good.

-

flossie · #8 (**permalink**) 22nd September 2009, 08:02 AM

People who go burnt include those who bought property here to live in and make it their home on the understanding that they would also have residency. Now, no residency anymore. Also those that were made redundant who have 30 days to leave and have to leave their villa behind.

Have to admit, though. I'd love to be one of those that didn't get left holding the proverbial and off loaded their property before the **** hit the fan, making a vast profit in the meantime.

I'm with Elphaba. Who is going to buy all these villas in Jumeirah Village, Motor City, Falcon City, etc etc. Not to mention apartments.

Abu Dhabi Girl · #9 (**permalink**) 22nd September 2009, 10:35 AM

I don't mean to sound too cynical or pessimistic but there have been so many stories about people getting burnt and losing millions of dirhams when they take the plunge and buy... this woman was totally sensible and she still doesn't have the deeds to her three properties (Dubai property owners still lack deeds - The National Newspaper)
I know that a lot of people see renting as throwing money away, and I do understand that viewpoint, but the UAE is not like the UK and the processes are so much less transparent.

marc · #10 (**permalink**) 24th September 2009, 07:44 AM

Im not sure about prices, everyone seems to wait for an event to either buy or sell, nothing changed during Ramadan, and now the excuse is opening of Burj Dubai e.t.c

markets are in better shape, but that still doesnt change the fact.

i personally would only buy here if i genuinely had disposable funds to for a rental investment as there is still plenty of activity and people coming in the country, even though rental prices have gone down the returns are still much higher then say london.

it would have to be a good area as well,

FYI - Jumeriah Village is one the of busiest areas at the moment for investing, i dont think people care who will live in them, they are a great buy for consolidation in Nakheel cancelled projects - ''credit notes ''....