Seriously considering buying property in Dubai - a few questions

[Brendan R]

Hello Brendan.
The pound is up from a low of around 1.35 to around 1.43 on the back of some positive from Barclays etc.Also George Soros said today he expects the pound to settle around 1.40 for the time being.
What makes you think it will go down to 1 USD = 1 GBP?

Personally I would love to see it that low as I am trying to sell property in Dubai
and bring the money back to the UK.

I live in the UK and I can tell you the situation is pretty dire. Shops after shops closing, a banking industry in disarray and possibly bankrupt, there is no way sterling is going to be strong going forward.

The GBP has been as low as 1.05 vs the dollar. The dollar is a special case apart. I'm not saying their economy is currently in a better shape but it is certainly more resilient than ours. There is natural demand for dollars in the world, there is no demand for pounds. Let's face it, the mighy pound died a long time ago.

Sterling has rebounded from 1.35 and may correct back to 1.50-1.52 before the next leg down that will take us to parity.

As I told I shorted sterling from 1.99 and I will ride these short term corrections. This is a long term view. You have to live in the UK to understand the mess we're in.

 

[Wannaberich]

I live in the UK and I can tell you the situation is pretty dire. Shops after shops closing, a banking industry in disarray and possibly bankrupt, there is no way sterling is going to be strong going forward.

The GBP has been as low as 1.05 vs the dollar. The dollar is a special case apart. I'm not saying their economy is currently in a better shape but it is certainly more resilient than ours. There is natural demand for dollars in the world, there is no demand for pounds. Let's face it, the mighy pound died a long time ago.

Sterling has rebounded from 1.35 and may correct back to 1.50-1.52 before the next leg down that will take us to parity.

As I told I shorted sterling from 1.99 and I will ride these short term corrections. This is a long term view. You have to live in the UK to understand the mess we're in.

I'm also in the UK so know what the situation is like.
Wouldnt it need for some really dire news to come out of the UK for the pound to go down to 1.05 again?
Also I'm assuming next weeks interest rate cut has already been priced into the pound so that wont make much difference?
The fact that the British goverment have said they are not really interested in supporting the pound wont do it much good either I guess.

 

[Brendan R]

let's face it, the UK is facing several years of misery. It needs to reinvent iself but other countries will not wait for us. We're starting well behind with no industry left. The banking sector will not come back, Hedge funds are leaving towards more friendly shores, all the high paying jobs slowly disappear. The burden of taxation can only increase making the UK an uninteresting destination both for individuals and companies. It's not pleasant writing this but it's the reality. The sooner people accept it the faster we start rebuilding.
this link from the BBC is interesting, on a relative basis the UK will be the worst performer
BBC NEWS | Business | World growth 'worst for 60 years'

 

[ddhelpdesk]

Hi

Great forum you have here! Just as a quick introduction, I've worked hard all my life in the building trade to the point where I've just about managed to put myself and family in a comfortable financial position and sell up before the recession struck.

Now that I have time on my hands, I'd like to spend a little more time abroad and Dubai is a place that really fascinates me. Yes, I'm looking at this from an investment perspective but first and foremost I want to but a property somewhere I feel I can happily spend lots of time during the miserable British winter.

However, I'm totally new to all this so was hoping I might find answers to a few questions here:

1. Are there any places online where I can get an idea of how far my budget will go? I'd prefer a house / villa to an apartment but I just don't know if this is feasible.

2. Any good estate agents / developers I should speak to? Maybe it's paranoia, but wherever there's affluence, crooks don't seem to be far away

3. Not a nice question, but one I feel I need to ask - is there any elevated risk of terrorism in Dubai that I should be concerned about?

4. I have friends who have bought property in Spain and there were a number of property dealer's who paid for or heavily subsidised their trip for viewings. Are there any companies in Dubai who offer similar deals?

Please excuse my ignorance re: some of the above, I am in the very early stages of looking into this.

Many thanks

Chaz!

Hi, great that you have such a keen interest in Dubai and yes the weather here is fantatsic and makes for an ideal break from the constant gloomy british winter - to help you out a little with your questions;

1. about your budget - what is it? due to the financial crisis their are some amazing deals floating about - some of the best I have seen this week are the following; 3 bed plus maids Jumeriah Beach Residence - full sea view, AED2.2million net to the owner. This is particularly good as previously a unit like this was going for anything from AED4.5 - 5 million. As far as villas are concerns the best deal i have come accross to date is a 3 bed in The Springs type 3E - 2.2million net to the seller. (again previously priced at 3.5million). Granted these previous prices were ALL inflated but people were nontheless paying them - the market has seen a huge price correction and it's a really good thing. Some great places to gather some comparitive info are propertyfinder and dubizzle. (please google them)

2. There are still a few really good and honest agents and developers out there. Once again there has been a huge market correction and a vast amount of the 'riff raff' has been cut out of the picture. The beauty of the Dubai property market is that interestingly enough different agencies split commissions! yip thats right there is alot of teamwork going on here. It allows for a lot of interactivity and assists the buyer in making a good decision as they are fully aware of all properties that are on the market if their chosen agent has a good network.

3. As for the terrorism, while I am no expert - I have lived here for almost two years now and have never felt threatened in any way.

4. That sounds fantastic, I however have not heard of anything like this. Perhaps if you had enough money to put down for a few buildings or plots one could negotiate some travel arrangments.

I trust this is off assistance to you, please feel free to contact me should you have any further queries or just a gather a little more advice, I would be happy to help 0508746171/043035555

Best

 

[Mendozo]

Considering the fact that there are almost no deals happening in the market with real estate agents being hungry as sharks for any potential buyer, someone who is willing to buy a 3BR apartment/villa would expect the same level of treatment as if he was buying a full building 6 months ago

 

[Wannaberich]

1. about your budget - what is it? due to the financial crisis their are some amazing deals floating about -

Don't you get it dude?! Chaz is in the UK.If he buys a property in Dubai he will be transferring pounds into dirhams.The pound has lost around 30% in value against the dollar/dirham therefore he will not get a bargain !

 

[Mendozo]

Don't you get it dude?! Chaz is in the UK.If he buys a property in Dubai he will be transferring pounds into dirhams.The pound has lost around 30% in value against the dollar/dirham therefore he will not get a bargain !

Since the prices are falling down every day and there's no visible end to this free fall, I believe real bargains that will offset pound weakness to dirham are yet to be seen.

 

[ddhelpdesk]

lol yes i get it dude?!

Chaz was enquiring where he could get an idea of how far his budget would go. I was simply giving him an idea - as Chaz is British I am sure he is fully aware of the currency fluctuations but none the less would still like to consider his holiday home in Dubai, When you see prices drop more than 2 million dirhams in the space of one month thats amazing! Mondoza I agree with you, the prices will drop even more - the original price of these properties i spoke of - a lot of these investors (if they bought direct from the developer) bought for anything from AED900,000dirhams or a less. I have no doubt they will drop more in the next few months ....yes they should get the same treatment unfortunately they dont - it is a good idea though

 

[sarah DXB]

Hello,

I specialise on Palm Jumeirah. My honest advice would be don't buy anything off plan at the moment, unless its from a developer such as Nakheel or Emaar or due to complete in the next 3mths- be very careful.

Don't buy anything that is Damac- projects never get built, 2 people who used to work there now are with us and they say they are notorious! Only buy projects that have a well known developer because if things go wrong, you can get your money back.

I have been sent the list of all developments on hold and cancelled in dubai.

I think you should stick to ready properties. Buy in areas that are desirable- Downtown Burj Dubai and The Palm are the only areas I would suggest. You can pick up 2 beds from 2m and 3 beds from 2.8m now and you know they will be no trouble and the re-sale in time will be good.

If you need any advice just call me 050 903 9908

 

[Wannaberich]

let's face it, the UK is facing several years of misery. It needs to reinvent iself but other countries will not wait for us. We're starting well behind with no industry left. The banking sector will not come back, Hedge funds are leaving towards more friendly shores, all the high paying jobs slowly disappear. The burden of taxation can only increase making the UK an uninteresting destination both for individuals and companies. It's not pleasant writing this but it's the reality. The sooner people accept it the faster we start rebuilding.
this link from the BBC is interesting, on a relative basis the UK will be the worst performer
BBC NEWS | Business | World growth 'worst for 60 years'

On the back of the statement by the IMF yesterday whats with the pound rallying today?

 

[Investoman_uae]

So let me get this right.... if prices are still droping... why would anyone buy now.... only to have his property fall in price next week LOL .... Nice advice.

You know, even if this Chaz character decides to buy today... he will think next week... dam it i wish i waited a week i wud have gotten a better deal... and dam it the weak pound has really messed up everytin on the currency transfer.

The market is of completed properties, i agree with some here..... or near complete. As for the off plan... one must wait until the market shows some positive signs.... otherwise, no point.

Inv.

 

[PropGuy]

On the back of the statement by the IMF yesterday whats with the pound rallying today?

It is not a rally imo. GBP fell approx. to 1.406 from 1.43 then came back to 1.43. I closed my long positions @ 1.43 yesterday, I suppose other for-ex traders were closing their longs too, that would have caused it to fall. It is moving up because USD is in a falling trend at the moment.

 

[Sixgun]

Hi Sarah,
I hope we can do some business together, as you are involved in Real eastate in Dubai, and I am stuck in Russia.
I was offered a 2 bed apartment, 22nd floor, at front of Lago Vista (IMPZ) really the best there, overlooking the lake.
They were 2.2m dhms 1 year ago, and now I'm being offered again at slightly less.
is this a good deal?, and can you negotiate on my behalf , for a fee obv.

 

[Brendan R]

It is not a rally imo. GBP fell approx. to 1.406 from 1.43 then came back to 1.43. I closed my long positions @ 1.43 yesterday, I suppose other for-ex traders were closing their longs too, that would have caused it to fall. It is moving up because USD is in a falling trend at the moment.

the falling trend didn't last long

USD index has rebounded from its 50-day moving average and now stands at 85.34. It is going to retest the highs around 88. If it breaks 88 it is headed for 100.
Put your seatbelts on. Ready to skyrocket.

 

[Wannaberich]

the falling trend didn't last long

USD index has rebounded from its 50-day moving average and now stands at 85.34. It is going to retest the highs around 88. If it breaks 88 it is headed for 100.
Put your seatbelts on. Ready to skyrocket.

Errr,for those of us who only speak english,what are u saying?

 

[PropGuy]

Errr,for those of us who only speak english,what are u saying?

That means USD is changing direction from falling to rising, and he is expecting a rally in USD. But imo, this is short term correction, we'll know in 2 days

 

[PropGuy]

GBP is still rising against USD, Euro is falling. Like I said Euro looks weak but it is good for long term against GBP and USD.

 

[PropGuy]

I'm expecting rebound in euro, long @ 1.284 lets see what happens.

 

[Wannaberich]

That means USD is changing direction from falling to rising. But imo, this is short term correction, we'll know in 2 days

Thanks.
Am I right to assume next weeks interest rate cut has already been priced in?
0.5% is expected,should it be more than this will it weaken the pound?

 

[PropGuy]

Thanks.
Am I right to assume next weeks interest rate cut has already been priced in?
0.5% is expected,should it be more than this will it weaken the pound?

yup















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