If the $ is stronger less money will come to the country as the main “investors” are from Pakistan, India, Iran, UK, Russia and all of the above currencies lost 25% of the value, so 25% less money to the country.Dubai market is doomed if $ didn't fall, if you study the charts, some how dubai market appears to be inversely related with the price of $. $ is rising it is good for renting or people who have secured mortgage but bad for off plan properties. But one little problem, there is no fundamental reason behind the rise of $, so it can come crashing down as fast it went up. But when will that happen is difficult to guess.
They can come down to 30% if everybody wants to cash out close to their cost, but everybody doesn't want to cashout cost to cost in dhs. There will be people who will be holding their properties so price is not exactly expected to come down to 30%. Especially if you are renting out you will earn 30% more on your investments in your home country. So renting out here does have attraction but that would depend on the supply of ready units. But overall renting out should be reason to hold ready or soon to be ready properties. There are other reasons, since properties have differentiated demand so prices doesn't drop equally for every property. Some properties in prime locations might still earn good return on resale value.If the $ is stronger less money will come to the country as the main “investors” are from Pakistan, India, Iran, UK, Russia and all of the above currencies lost 25% of the value, so 25% less money to the country.
If the $ gains 10% more will be 35% less money to UAE
The still and the concrete will be cheaper the labour will demand less salary.
So why not prices go down by 30%.
The history shows that the most acceptable rate exchange is 1$=1.78DM orThey can come down to 30% if everybody wants to cash out close to their cost, but everybody doesn't want to cashout cost to cost in dhs. There will be people who will be holding their properties so price is not exactly expected to come down to 30%. Especially if you are renting out you will earn 30% more on your investments in your home country. So renting out here does have attraction but that would depend on the supply of ready units. But overall renting out should be reason to hold ready or soon to be ready properties. There are other reasons, since properties have differentiated demand so prices doesn't drop equally for every property. Some properties in prime locations might still earn good return on resale value.
Another thing, it is not certain $ will stay at that level esp in the light of all the $ printing by Fed recently. So in coming few months increased supply of $ is expected to show effects too, in that case, $ can take a nose dive again and commodities will shoot up high again too. That would be another reason to hold on to a real estate for those who can.
But these are long-term investors, flippers market appears to have ended. And property prices in the beginning are expected to go down fast and then stabilize, since flippers who couldn't dispose their properties must be trying to get out of the market as soon as possible.
COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can't produce the gold or cash),COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place
Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market...
My reaction: I am certain the US is less than a month away from a currency collapse. The fed and treasury are not even taking the time to think at this point: they are just throwing money and guarantees at each new problem that pops up without worrying about the consequence. Since no one can imagine a currency collapse, there isn't the political will to take the painful steps needed to prevent it (reign in fed and let institutions fail). The forces and trends behind the financial collapse are too powerful to stop.
U.S. Dollar Currency Collapse Within 30 Days :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website
