Investing Or Buying A Second Home In Dubai

[LaoPo]

I just ran into this article*, but it's secondary to my question:

Do you know of anybody who invested or bought a second home in Dubai or other UAE country/state ?

I don't, but the whole world seems to speak about it. If one looks at these huge villa's on one of the islands or Palm islands I really can't see why anybody would want to live or buy one of them. And....what about the thousands of luxury apartments they are building....who on earth is going to live there (not me, that's for sure)..?

I mean these villa's are built so close to each other it's simple unbelievable...

But..some seem to be happy:

Meet the first resident of Dubai's palm-shaped man-made island

When finished, Palm Jumeirah will number about 120,000 residents and workers spending their days on an island made of rock blasted from nearby mountains and sand dredged from the bottom of the Persian Gulf.

Each of the 100 mansions sits on a kilometre (half-mile) long palm frond, packed in among dozens or sometimes hundreds of others.

Andrew Jukes admires the general view from his balcony at the Jumeira Palm Island in Dubai. Across a channel of turquoise sea sits a tightly bunched string of mansions; Dukes paid over £500,000 for his house just over a year ago.

Four years ago there was nothing here but unbroken sea. Now there's Palm Jumeirah, a palm-shaped, man-made island and Dubai's greatest-yet construction project

...not to much space between the villa's....

...why so close ???...

Dubai, seen from the top

http://images.google.nl/imgres?imgurl=http...ficial%26sa%3DG

LaoPo

* Dubai Plans to Raise Up to $4 Billion in Bond Program

http://www.bloomberg.com/apps/news?pid=206...mp;refer=europe

[Naam]

Do you know of anybody who invested or bought a second home in Dubai or other UAE country/state ?

i have a few acquaintances and one good friend who bought a couple of years ago in Dubai although not as second but as primary homes (one is retired, two work as bankers). before we settled in Thailand we too were interested in Dubai but the prices of detached homes (as well as apartments) were then and are now still outrageous. also terrible are the traffic jams which start at 09.00 and last till 22.00 hrs. living cost is higher than East Asia but lower for those moving from Europe because income tax does not (yet) exist. a variety of local and especially imported food is available but those who like to have a drink "once in a while" have to pay through their noses by frequenting hotel bars or get some booze on the black market. domestic servants, gardeners and drivers are available at affordable salaries. needless to say that Dubai's infrastructure is skyhigh above that of Thailand.

[GuestHouse]

We have and office in Dubai and a three guys I'm working with right now have bought apartments in Dubai during past assignments there. They are all now renting out to the expat community and I know that one of the guys is very happy with his return on investment (income off investment).

However, prices have shot up these past two years and as one of the guys was saying there appears to be an over supply of condos, and with these two factors an increased risk to the investor that the rentals and returns may not be as good as they have been.

[PattayaParent]

but those who like to have a drink "once in a while" have to pay through their noses by frequenting hotel bars or get some booze on the black market.

Or they could just apply for a booze licence at the main police station or take a drive to Ajman and buy it there where no license is needed.

A lot of the booze shops will also sell booze to Farangs without a booze license.

[quiksilva]

I had some Dubai investors speak to me about selling Dubai property to the Thai market. When I inquired about their rental return, they responded that most people who buy their properties buy to sell on (i.e. flip) and look to make 100-150% doing so, when further pressed for information on the rental market they clammed up. I declined to act for them.

If I was looking for evidence of a property bubble anywhere in the world right now, Dubai would be a great place to start...

[Zeid]

there are some people who put the down payments and after a few months they sell the property making decent profit.

[Groongthep]

there are some people who put the down payments and after a few months they sell the property making decent profit.

As quiksilva has said this is the very thing that causes property price bubbles. Invest with caution. Besides, as anyone who has been to Dubai can tell you it is not just hot there it is unbelievably hot. In spite of the economic boom, I can't understand why anyone would choose to live in that oven.

[Naam]

but those who like to have a drink "once in a while" have to pay through their noses by frequenting hotel bars or get some booze on the black market.

Or they could just apply for a booze licence at the main police station or take a drive to Ajman and buy it there where no license is needed.

A lot of the booze shops will also sell booze to Farangs without a booze license.

liquor on license is limited by quantity and of course bloody expensive, don't know about Ajman though. the retired friend of mine was refused a liquor license for several months. the issuing police department was confused because the law says besides proof of residence a copy of the employment contract has to be submitted. but in the end he was successful.

[Naam]

there are some people who put the down payments and after a few months they sell the property making decent profit.

but the time of big profits seem to be over. if you contact some realtors you will find a bunch of properties advertised "below initial purchase price".

[Naam]

there are some people who put the down payments and after a few months they sell the property making decent profit.

As quiksilva has said this is the very thing that causes property price bubbles. Invest with caution. Besides, as anyone who has been to Dubai can tell you it is not just hot there it is unbelievably hot. In spite of the economic boom, I can't understand why anyone would choose to live in that oven.

from november till march the climate is moderate and quite pleasant (unlike Pattaya).

[Zeid]

it just started heating up two days ago at 5am it was 25 by 730 it was at 29.

i have to agree with naam about the weather, for me it actually got called

Dubai is a big lego city, there is construction everywhere do everything, bigger, wider and taller, getting more expensive by the day.

I personally am putting a good chunk of the money i make in Dubai, back in Thailand.

[PattayaParent]

but those who like to have a drink "once in a while" have to pay through their noses by frequenting hotel bars or get some booze on the black market.

Or they could just apply for a booze licence at the main police station or take a drive to Ajman and buy it there where no license is needed.

A lot of the booze shops will also sell booze to Farangs without a booze license.

liquor on license is limited by quantity and of course bloody expensive, don't know about Ajman though. the retired friend of mine was refused a liquor license for several months. the issuing police department was confused because the law says besides proof of residence a copy of the employment contract has to be submitted. but in the end he was successful.

The limit on quantity is enough to buy something like 4 cases (not bottles) of whisky a month. More than enough for 2 to 3 average drinkers at home in a month.

So few people use up their entire month's booze allowance that they lend the license to friends, or even supply the weekly H3.

Booze from the booze shops is a lot cheaper than buying it in a pub, even though a pub is not that expensive at Dhs 16 a pint (just less than 3 quid) generally, Dhs 10 in Sharjah or The Club in Abu Dhabi.

Bottles of wine can be had for US$1 a bottle and slabs of beer (24 cans) $2 in Ajman booze shops which is about 25% cheaper than Dubai.

[Naam]

Bottles of wine can be had for US$1 a bottle and slabs of beer (24 cans) $2 in Ajman booze shops which is about 25% cheaper than Dubai.

talked to my friend in Dubai. he asked me to tell you that his grandmother was a famous astronaut before World War II. i wonder what he's trying to convey

[PattayaParent]

liquor on license is limited by quantity and of course bloody expensive, don't know about Ajman though. the retired friend of mine was refused a liquor license for several months. the issuing police department was confused because the law says besides proof of residence a copy of the employment contract has to be submitted. but in the end he was successful.

The limit on quantity is enough to buy something like 4 cases (not bottles) of whisky a month. More than enough for 2 to 3 average drinkers at home in a month.

So few people use up their entire month's booze allowance that they lend the license to friends, or even supply the weekly H3.

Booze from the booze shops is a lot cheaper than buying it in a pub, even though a pub is not that expensive at Dhs 16 a pint (just less than 3 quid) generally, Dhs 10 in Sharjah or The Club in Abu Dhabi.

Bottles of wine can be had for US$1 a bottle and slabs of beer (24 cans) $2 in Ajman booze shops which is about 25% cheaper than Dubai.

Correction almost $4 for a slab of beer (Dhs 145)

[Khun Jean]

We sure have our share of alcoholic know alls. So what about the topic or is money invested in beer?

You know to have a return on investment in the form of a large round belly, red nose and empty head.

[LaoPo]

Thanks for the input Gentlemen !

Personally, I couldn't think of anything what would convince me of going to live in Dubai cs or even having a holiday home, apart from a possible tax advantage (doesn't apply for me).

It's like an ultra modern new-built kind of New York, Hong Kong or Shanghai with bluddy hot beaches with no shade (but artificial), no small old romantic streets with hundreds of small cozy shops & restaurants like around the Med or Palm trees covered beaches where one can buy a tasty Sapparot, Mango or plate of fried rice, like in LOS.

It misses a cozy and warm atmosphere and if you turn around your neck on the beach you face thousands of skyscrapers with hundreds of thousands of expensive apartments, filled with Farang, sitting inside because it's too bluddy hot outside

It's a matter of time before the Sheik's dream falls into pieces......and apartments and houses will be for sale for peanuts (in comparison of course) but even then, who wants to live there ?

Not me.

LaoPo

[Naam]

Thanks for the input Gentlemen !

Personally, I couldn't think of anything what would convince me of going to live in Dubai cs or even having a holiday home, apart from a possible tax advantage (doesn't apply for me).

It's like an ultra modern new-built kind of New York, Hong Kong or Shanghai with bluddy hot beaches with no shade (but artificial), no small old romantic streets with hundreds of small cozy shops & restaurants like around the Med or Palm trees covered beaches where one can buy a tasty Sapparot, Mango or plate of fried rice, like in LOS.

It misses a cozy and warm atmosphere and if you turn around your neck on the beach you face thousands of skyscrapers with hundreds of thousands of expensive apartments, filled with Farang, sitting inside because it's too bluddy hot outside

It's a matter of time before the Sheik's dream falls into pieces......and apartments and houses will be for sale for peanuts (in comparison of course) but even then, who wants to live there ?

Not me.

LaoPo

if that is the case (and it looks like it might be the case in a few years) my wife and me are quite interested to live there a few months of the year.

"no small old romantic streets with hundreds of small cozy shops & restaurants" = not correct LaoPo. all this you can still find in Dubai if you know where to go. until now parts of Dubai still exist where you wander around and are not sure whether you are in Lahore or old Delhi because you hear more Urdu and Hindustani than Arabic.

[LaoPo]

Thanks for the input Gentlemen !

Personally, I couldn't think of anything what would convince me of going to live in Dubai cs or even having a holiday home, apart from a possible tax advantage (doesn't apply for me).

It's like an ultra modern new-built kind of New York, Hong Kong or Shanghai with bluddy hot beaches with no shade (but artificial), no small old romantic streets with hundreds of small cozy shops & restaurants like around the Med or Palm trees covered beaches where one can buy a tasty Sapparot, Mango or plate of fried rice, like in LOS.

It misses a cozy and warm atmosphere and if you turn around your neck on the beach you face thousands of skyscrapers with hundreds of thousands of expensive apartments, filled with Farang, sitting inside because it's too bluddy hot outside

It's a matter of time before the Sheik's dream falls into pieces......and apartments and houses will be for sale for peanuts (in comparison of course) but even then, who wants to live there ?

Not me.

LaoPo

if that is the case (and it looks like it might be the case in a few years) my wife and me are quite interested to live there a few months of the year.

"no small old romantic streets with hundreds of small cozy shops & restaurants" = not correct LaoPo. all this you can still find in Dubai if you know where to go. until now parts of Dubai still exist where you wander around and are not sure whether you are in Lahore or old Delhi because you hear more Urdu and Hindustani than Arabic.

OK, I stand corrected about the small cozy shops and restaurants.

Never been there, apart from some short stops, so I can't really judge about Dubai cs but still, I am not attracted to that part of the world, and probably never will.

It's like climbing high mountains surviving in ice and cold; some people love it.....not me.

There are limits to everyone's imagination I suppose. But, I won't stop anyone either, going to Dubai cs.

If anybody can tell me what fun it is to live in a villa like this, knowing, by the smell from the kitchen, what the neighbors are having for dinner, I would love to hear....

LaoPo

Edited April 10, 2008 by LaoPo

[PattayaParent]

liquor on license is limited by quantity and of course bloody expensive, don't know about Ajman though. the retired friend of mine was refused a liquor license for several months. the issuing police department was confused because the law says besides proof of residence a copy of the employment contract has to be submitted. but in the end he was successful.

The limit on quantity is enough to buy something like 4 cases (not bottles) of whisky a month. More than enough for 2 to 3 average drinkers at home in a month.

So few people use up their entire month's booze allowance that they lend the license to friends, or even supply the weekly H3.

Booze from the booze shops is a lot cheaper than buying it in a pub, even though a pub is not that expensive at Dhs 16 a pint (just less than 3 quid) generally, Dhs 10 in Sharjah or The Club in Abu Dhabi.

Bottles of wine can be had for US$1 a bottle and slabs of beer (24 cans) $2 in Ajman booze shops which is about 25% cheaper than Dubai.

Correction almost $4 for a slab of beer (Dhs 145)

Sorry, I'm a factor of 10 out there. it's $10 for a bottle of wine and $40 a slab of beer.

Now I better go check those budget projections I was working on yesterday!!!

Re the old romantic streets, these are now being redeveloped and modernised and losing their original atmosphere

[quiksilva]

Thanks for the input Gentlemen !

Personally, I couldn't think of anything what would convince me of going to live in Dubai cs or even having a holiday home, apart from a possible tax advantage (doesn't apply for me).

It's like an ultra modern new-built kind of New York, Hong Kong or Shanghai with bluddy hot beaches with no shade (but artificial), no small old romantic streets with hundreds of small cozy shops & restaurants like around the Med or Palm trees covered beaches where one can buy a tasty Sapparot, Mango or plate of fried rice, like in LOS.

It misses a cozy and warm atmosphere and if you turn around your neck on the beach you face thousands of skyscrapers with hundreds of thousands of expensive apartments, filled with Farang, sitting inside because it's too bluddy hot outside

It's a matter of time before the Sheik's dream falls into pieces......and apartments and houses will be for sale for peanuts (in comparison of course) but even then, who wants to live there ?

Not me.

LaoPo

if that is the case (and it looks like it might be the case in a few years) my wife and me are quite interested to live there a few months of the year.

"no small old romantic streets with hundreds of small cozy shops & restaurants" = not correct LaoPo. all this you can still find in Dubai if you know where to go. until now parts of Dubai still exist where you wander around and are not sure whether you are in Lahore or old Delhi because you hear more Urdu and Hindustani than Arabic.

OK, I stand corrected about the small cozy shops and restaurants.

Never been there, apart from some short stops, so I can't really judge about Dubai cs but still, I am not attracted to that part of the world, and probably never will.

It's like climbing high mountains surviving in ice and cold; some people love it.....not me.

There are limits to everyone's imagination I suppose. But, I won't stop anyone either, going to Dubai cs.

If anybody can tell me what fun it is to live in a villa like this, knowing, by the smell from the kitchen, what the neighbors are having for dinner, I would love to hear....

LaoPo

Apart from the fact that they have used the sort of estate layout plans of some Thailand's worse housing estates, those villas are horribly garish! I heard that these things are on the market from 1.5-10m USD a piece!!!

Given that factoid, its hardly any surprise that some people dont mind dropping serious cash on a hillside villa in Phuket, I know where I'd rather live!

[LaoPo]

"no small old romantic streets with hundreds of small cozy shops & restaurants" = not correct LaoPo. all this you can still find in Dubai if you know where to go. until now parts of Dubai still exist where you wander around and are not sure whether you are in Lahore or old Delhi because you hear more Urdu and Hindustani than Arabic.

I was thinking about this sentence again Naam.

Well, I think those small romantic streets in Dubai can't really compete with the atmosphere in France, Italy, Spain for instance, sitting at an outside terrace dinnertable with a nice bottle of red or white wine, after having enjoyed a Campari soda before dinner, just as an example........can it ?

BTW, can you have dinner outside in those small streets or anywhere else and order a bottle of whine ?

LaoPo

Edited April 11, 2008 by LaoPo

[Khun Jean]

BTW, can you have dinner outside in those small streets or anywhere else and order a bottle of whine ?

I think the English 'whine' are of the long lasting aftertaste kind, German 'whine' is more to the point and quick dissolving. As for south african, italian and france whine yes even the californian whine, i never hear about those. :D

[LaoPo]

BTW, can you have dinner outside in those small streets or anywhere else and order a bottle of whine ?

I think the English 'whine' are of the long lasting aftertaste kind, German 'whine' is more to the point and quick dissolving. As for south african, italian and france whine yes even the californian whine, i never hear about those. :D

Sharp today Khun Jean....? when was the last time you made a dictation in your own language.....? It was flawless I suppose ?

But, you're right it was a slip of my brain and wrong, of course....Mea Culpa.

I am not perfect but I knew that already

LaoPo

[Naam]

"no small old romantic streets with hundreds of small cozy shops & restaurants" = not correct LaoPo. all this you can still find in Dubai if you know where to go. until now parts of Dubai still exist where you wander around and are not sure whether you are in Lahore or old Delhi because you hear more Urdu and Hindustani than Arabic.

I was thinking about this sentence again Naam.

Well, I think those small romantic streets in Dubai can't really compete with the atmosphere in France, Italy, Spain for instance, sitting at an outside terrace dinnertable with a nice bottle of red or white wine, after having enjoyed a Campari soda before dinner, just as an example........can it ?

BTW, can you have dinner outside in those small streets or anywhere else and order a bottle of whine ?

LaoPo

it's all a matter of "taste, perception, perspective and expectation" LaoPo. of course you can't order wine or beer outside your hotel (a real shortcoming!) but the "old" Dubai still exists and food is exceptionally good no matter whether you pay 5 dollars in a not so hi-so restaurant or 100 dollars in a "top notch" restaurant. but in this respect Dubai offers definitely more bang for the buck than Italy, Spain or France.

[Khun Jean]

The sun in shining, my daughter will have her birthday tomorrow, i made a few bucks so i was in a good mood and had to laugh at the typo. That's all.

[Naam]

"no small old romantic streets with hundreds of small cozy shops & restaurants" = not correct LaoPo. all this you can still find in Dubai if you know where to go. until now parts of Dubai still exist where you wander around and are not sure whether you are in Lahore or old Delhi because you hear more Urdu and Hindustani than Arabic.

I was thinking about this sentence again Naam.

Well, I think those small romantic streets in Dubai can't really compete with the atmosphere in France, Italy, Spain for instance, sitting at an outside terrace dinnertable with a nice bottle of red or white wine, after having enjoyed a Campari soda before dinner, just as an example........can it ?

BTW, can you have dinner outside in those small streets or anywhere else and order a bottle of whine ?

LaoPo

it's all a matter of "taste, perception, perspective and expectation" LaoPo. of course you can't order wine or beer outside your hotel (a real shortcoming!) but the "old" Dubai still exists and food is exceptionally good no matter whether you pay 5 dollars in a not so hi-so restaurant or 100 dollars in a "top notch" restaurant. but in this respect Dubai offers definitely more bang for the buck than Italy, Spain or France.

[LaoPo]

it's all a matter of "taste, perception, perspective and expectation" LaoPo.

I fully agree.

I decided to go for France, Italia, and Espana and their cultures + LOS of course, and leave Dubai to you.

LaoPo