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IC best buy

Discussion in 'Dubai property' started by georgihh, Jan 22, 2008.

  1. georgihh

    georgihh New Member

    The worst post-war recession is on the way.
    The markets are in trouble, the property prices are going down.
    Dubai will feel the pressure soon or late.
    What do you need in such a bad timing? – steady and reasonable income.
    Where can you find it? – International city Dubai
    Why? – Because you still make 10 % per year of your investment
    And what is going to happen if the property prices fall down? – You still make your 10%. Can’t go wrong
     
  2. Wannaberich

    Wannaberich New Member

    I agree that the cheaper end of the rental market will suffer less than the luxury end although it might not escape it altogether.If your worried about losing your job then to pay up front rent for a luxury villa or marina appartment might not be such a good idea.
     
  3. georgihh

    georgihh New Member

    11 months back and sounds like was written yesterday
     
  4. naxal

    naxal New Member

    I completely don't believe in the 10% income .Its true only now but when the property prices will come tumbling down to its lowest so will rentals .In mathematics ,its known as 'Direct Proportion' .
     
  5. PropGuy

    PropGuy New Member

    Financial crises in US has reached the bottom as it appears, markets are expected to go side ways till next quarter then they should confirm expansion phase of the economy.

    As far as Dubai rentals are concerned it is difficult to asess because you will see supply increase in re market even though financial crises would be over. Average rental yield in Manhattan is around 4.6%.
     
  6. Djjunior

    Djjunior New Member

    Its not just a financial crises which invovled banks who invested and partook in risky subprime measures.

    Its a debt crisis fueled by mortgage lending, and heavy amounts of personal borrowing.

    You have yet to see a large amount of people defaulting on credit card bills and personal loans. And you have yet to really see people defaulting on commercial properties such as malls, hotels, office buildings etc.


    Consumer & Business Confidence is at or near all time lows, and this takes time to regain. Even if banks start lending again this will not solve the issue as people will still be reluctant to take on loans for investment properties when income is unknown or on a downwards trend. Moreover, people will also be reluctant to buy homes and will prefer to rent, as asset values will continue to drop..

    There is no way in hell that bottom can be achieved in the next few months. Bottom will occur, once global confidence comes back and overvalued asset bubbles and companies correct them self by either bankruptcies or dropping to realistic values in which they can be affordable again.

    This will take a minimum of another year to eighteen months (as we have already been in a recession for one year as it is.)

    The bleeding has not stopped yet, and will continue into next year.
     
  7. PropGuy

    PropGuy New Member

  8. Djjunior

    Djjunior New Member

    Fair Enough Argument.

    But, with lots of excess still needs to be wiped out and lots of companies which still need to go bankrupt the Dow Jones is bound to correct further.

    GM and Ford still needs to go bankrupt. $15 billion wont help them in the long run, the unions will suck them dry... They need to eventually declare bankruptcy

    XOM, Conocoo and all the other oil companies have been trading at high levels.. They have been trading on levels based on $140/ barrell oil... Once their earnings reflect $40 oil and I believe in the future $20 oil, they are bound to correct...

    Commercial Property developers have not yet gone bankrupt...

    there is still lots that needs to be fixed and a lot that needs to correct it self in a free market (such as bubbles bursting)

    This will at least take another year before you see any type of bottom.

    This stands for stocks globally (USA, Canada, UAE, Africa, China, India etc.) , property, Dubai property, Africa property, Canada property America Property etc...

    Globally lots of things were inflated, whether artifically, through debt, speculation etc... This NEEDS to fix it self along with some government intervention... Once the bleeding stops, consumer confidence should come back, but this will take time...

    Minimum 12- 18months.



     
  9. georgihh

    georgihh New Member

    Don’t change the subject

    You guys are missing the point, this tread was written 11 months ago and still accurate,
    All of you flippers and agents have to agree that the prediction was spot on.
     
  10. gypsyuma

    gypsyuma New Member

    Tell us more, Obi-wan.
     
  11. naxal

    naxal New Member

    If the moderators inform me this piece of info :

    Will the thread 'ASK RERA' open up ?Are the investigations completed regarding the verification of the Rera Official ?
     
  12. PropGuy

    PropGuy New Member

    You are not the only one predict this, but people who were depending charts and numbers expected the recession to hit in 2009. Fallout came early and too sharp. But charts and numbers showed early fallout in oct, so people who took average between early fallout and late fallout calculations were taking risk.

    Now important thing to me is future, prices are expected to rebound but when.
     
  13. zombie

    zombie New Member

    Why is everyone in such a hurry for a rebound, there are many factors that influence it, obviously if & when they come into place a rebound will take place.

    The market is still reeling from absolute lack of clarity in regulation, if I remember reading correctly on the "Ask RERA" thread, there are only 60 people working in RERA at the moment, do you expect 60 people who are employed will have any control over developers who are building 100s of billion dirhams worth of property. The much needed changes in regulation & investor friendly laws with control over developer's many projects will take a long time,3 years is my guess(if we are lucky).

    Then there is liquidity / willingness to invest in this market by HNW Individuals & FDI Institutional investors, exchange rate fluctuations(thanks to the Dollar peg).

    The last is the core of Dubai, the rentals market which affects the rate of return(If regular trading, non construction based business is hit, demand for property rentals by expats will not rise for a while).

    Each to his own, expecting this place to rebound soon may be foolhardy, I am hoping in 10-15 years there is another spurt in growth.
     
  14. aveshbachav

    aveshbachav New Member

    I wonder if anybody can tell me the real rate on ground for renting a one bedroom flat in IC and the rentals one can expect ? I mean real figures not inflated ones and not the ones pessimists quote.
     
  15. georgihh

    georgihh New Member

    70k two cheques
     
  16. Ayyan

    Ayyan New Member

    I am renting out 1 of my studios for 42k a year

    i am happy i brought it for 240k next year will increase rent to 50k
     
  17. aveshbachav

    aveshbachav New Member

    Ayyan,

    How does one increase the rent of change existing tenant. I reside in nearby Oman.
     
  18. Ayyan

    Ayyan New Member

    you can only increase rent by 7% every 2 years
     
  19. aveshbachav

    aveshbachav New Member

    Ayyan,

    Mine is just rented for 45K a year and thats a 1 bedroom. I want to get max cash flows as the economy looks weak and the tenants may one day may not be there
     
  20. Ayyan

    Ayyan New Member

    1 beds are about 60k fair rent as u can get discovery gardens for 75k

    best thing to do is give ur tennant notice but i doubt they will leave at that rent , u will go to the rent committe and they will give tennant minium of 1 year stay
     
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