Desi Cartman Posted November 28, 2009 Share Posted November 28, 2009 Its amazing that property prices in India are also too high. An apartment in say Rohini or Dwarka in 2004 would cost 25 lacs , in 2008 it was over 60 lacs ... even now it would be around 55 lacs The problem , more than half flats are empty. The rent for a 60 lac apartment is no more than 10,000. If you do the math and use interest rate of as low as say 5%. Even with this low rate, it still doesnt make any sense. People are biuying property and pushing the price cuz if you ask 10 people "Do you think property prices ever go down ".. even now 90% of people would say "No NEVER" ... 2 years ago 99% people said "NO never". This shyt doesnt make any sense .. there are enough houses for people.. in fact a lot more .. then why is the price going higher !!! Same thing in Aus .. an average family makes 50k a year (after tax).. the house prices in bad suburbs is over half a million ... With rent being say 1000 per month and loan repayment is over 3k ... WHO THE FECK IS GOING TO PAY THE 2K :dontknow: People are still buying .... but when few of them will sell ... it will all come crashing down especially in Aus .. Link to comment Share on other sites More sharing options...
Desi Cartman Posted November 28, 2009 Share Posted November 28, 2009 I agree with your point Rajiv but they are a small part of the expat population. Large majority are people who are economic migrants who have taken up a job. They are going to do a runner. lol all Indians would leave dubai within Months if things get that bad, The UAE policy to not make anybody a permanent resident is gonna come back to bite them in the ass since all foreigners have an exit plan. They all have savings back home , houses and even families back home. No one lives in Dubai permanently. Link to comment Share on other sites More sharing options...
SachDan Posted November 28, 2009 Share Posted November 28, 2009 They will' date= there is no option. If they don't help the emirates will fall apart. Further, Nahyan and Al-Maktoum are related families, right? For how long? and what they gets in return ?? :dontknow: Dubai have only themselves to blame for the situation they are in atm...paying the price for lavish spendings. Link to comment Share on other sites More sharing options...
Guest Gunner Posted November 28, 2009 Share Posted November 28, 2009 For how long? and what they gets in return ?? :dontknow: Dubai have only themselves to blame for the situation they are in atm...paying the price for lavish spendings. They get to have a country otherwise they would just get rolled over by the Saudis. At the height of the Dubai boom, expats there hailed Al-Maktoum as a visionary, what happened? :haha::haha: Link to comment Share on other sites More sharing options...
SachDan Posted November 28, 2009 Share Posted November 28, 2009 :rotfl::rotfl::rotfl::rotfl::rotfl: Intha navu valisundha??:(( Link to comment Share on other sites More sharing options...
Malcolm Merlyn Posted November 28, 2009 Share Posted November 28, 2009 For how long? and what they gets in return ?? :dontknow: Dubai have only themselves to blame for the situation they are in atm...paying the price for lavish spendings. do u have a house in india???:nervous: Link to comment Share on other sites More sharing options...
Sooda Posted November 28, 2009 Share Posted November 28, 2009 I agree with your point Rajiv but they are a small part of the expat population. Large majority are people who are economic migrants who have taken up a job. They are going to do a runner. Aye, and then the country will realise what theyre missing. Those workers have no affinity for the place, theyre treated like slaves and hopefully theyve made and sent back home enough. Will be interesting to see how much has been invested by british banks there, think HSBC have something like 15bn in loans to Dubai. Theyve gonna be praying the sh!t hasnt hit the fan. What will happen is that their brothers in Abu Dhabi will come to the rescue, as you say theyre the rich ones who produce all the oil Link to comment Share on other sites More sharing options...
Guest Gunner Posted November 28, 2009 Share Posted November 28, 2009 Its amazing that property prices in India are also too high. An apartment in say Rohini or Dwarka in 2004 would cost 25 lacs , in 2008 it was over 60 lacs ... even now it would be around 55 lacs The problem , more than half flats are empty. The rent for a 60 lac apartment is no more than 10,000. If you do the math and use interest rate of as low as say 5%. Even with this low rate, it still doesnt make any sense. People are biuying property and pushing the price cuz if you ask 10 people "Do you think property prices ever go down ".. even now 90% of people would say "No NEVER" ... 2 years ago 99% people said "NO never". This shyt doesnt make any sense .. there are enough houses for people.. in fact a lot more .. then why is the price going higher !!! Same thing in Aus .. an average family makes 50k a year (after tax).. the house prices in bad suburbs is over half a million ... With rent being say 1000 per month and loan repayment is over 3k ... WHO THE FECK IS GOING TO PAY THE 2K :dontknow: People are still buying .... but when few of them will sell ... it will all come crashing down especially in Aus .. Daisy, in India there is a large untapped market potential with hundreds of millions of first time buyers still waiting. So I am sure that the real estate prices are more stable in India than elsewhere. As far as the rents go, in Bangalore a 3BHK flat still commands 25K rent, which is pretty good. I however agree that these prices have taken the dream of buying a house out of the reach of many Indians which is a huge pity. The government also had a part to play in this with high stamp duties and service tax on construction which are entirely borne by the buyers. The problem in Aus is similar to all western countries, the funny thing is Aus-NZ has the highest home ownership rate in the world. So who is buying, the immigrants? :haha::haha: Link to comment Share on other sites More sharing options...
SachDan Posted November 28, 2009 Share Posted November 28, 2009 do u have a house in india???:nervous: oh yes :two_thumbs_up: Withstood the first part of recession. Now only a miracle can save from this precarious position. Also it doesn't help being part of a sector (banking in my case) which is going to get affected the most in the coming days :( Link to comment Share on other sites More sharing options...
Malcolm Merlyn Posted November 28, 2009 Share Posted November 28, 2009 oh yes :two_thumbs_up: Withstood the first part of recession. Now only a miracle can save from this precarious position. Also it doesn't help being part of a sector (banking in my case) which is going to get affected the most in the coming days :( how bad are the banks exposed???it is not bad as the american one some 60 billz here i guess.....some suppport from abu dhabi may help.....idont see why abu dhabi wont help....they have to keep the emorates together if dubai goes rest will go soon as well Link to comment Share on other sites More sharing options...
Malcolm Merlyn Posted November 28, 2009 Share Posted November 28, 2009 thnk god and touch wood in mu industry there cannot be a recession:pray: Link to comment Share on other sites More sharing options...
Desi Cartman Posted November 28, 2009 Share Posted November 28, 2009 The problem in Aus is similar to all western countries, the funny thing is Aus-NZ has the highest home ownership rate in the world. So who is buying, the immigrants? :haha::haha: Yes ... The suburb of Point cook near melbourne probably has over 60-70% Indians. BTW this suburb also has the highest birth rate in the state :isalute: I know people who own 10-15 properties , these guys have interest only loans .. they pay the interest from the rent and are waiting for the price to go REALLY high in the next few years. I wonder how ****ed they will be if the price drops by even 5-10% in the next 1 year. The govt realized that the housing market is going to crash so they started giving 40k as grant. So people are using 10k ( from Credit car or savings ) & the grant money to buy a $500000 house ... These first home buyers are so ****ed , the value of their house will probably drop by 30% in the next 2 years ... The interest rate willl at least double from the current rate of 5-6% and to top it all , loans in Aus are not like how they are in the US. Here the loans are not limited against the property. If you sell the house and cant pay entire loan amout back then the bank will haunt you for life ... unlike in the US where the bank can only sell the property. Link to comment Share on other sites More sharing options...
SachDan Posted November 29, 2009 Share Posted November 29, 2009 Abu Dhabi refuses to nurse all of Dubai's debt wounds ABU DHABI: Abu Dhabi, capital of the United Arab Emirates and one of the world's top oil exporters, will "pick and choose" how to assist its debt-laden neighbour Dubai, a senior Abu Dhabi official said on Saturday. "We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts," the official in the government of the emirate of Abu Dhabi told Reuters by phone. A policy of selectively assisting cash-strapped companies affiliated with the government of Dubai, instead of providing blanket assistance, challenges assumptions made by many investors who assumed that wealthy Abu Dhabi provided a complete safety net for its racier neighbour. Dubai's crisis exploded on Wednesday when the emirate, known for flashy lifestyles and the world's tallest building, said it would delay payment on debt issued by one of its flagship firms, angering investors and sending global markets sharply lower. "Some of Dubai's entities are commercial, semi-government ones. Abu Dhabi will pick and choose when and where to assist," said the official, who declined to be identified because he is not authorised to speak to the media. Abu Dhabi, which pumps 90 per cent of the oil that make the United Arab Emirates the world's third-largest oil exporter, has already provided $15 billion in indirect support for Dubai through the UAE central bank and two private Abu Dhabi banks. How much more support the emirate provides for its cash-strapped neighbour, however, will depend on how Dubai clarifies its stand on unresolved issues. "Until things become clearer, it is very difficult to make any further investment decision on the bonds. Many things have to be clarified by Dubai," the official said. CENTRAL BANK MONITORING The UAE central bank said it was closely watching events stemming from the Dubai debt crisis to ensure no harm results for the national economy, a spokesman for the central bank said on Saturday. "The central bank is monitoring developments very carefully to ensure that there is no negative impact on the UAE economy," the spokesman told Reuters by phone. Constitutionally, each emirate in the UAE is a separate legal entity within the loose federation, and each controls its own natural and financial resources. The federal government has no guaranteed access to those resources nor is it obliged to underwrite the liabilities of any emirate. International markets were rocked when Dubai said on Wednesday it was instigating a major restructuring at one of its biggest holding companies, Dubai World. As part of the restructuring programme, investors have been advised of a "standstill" in repayment of flagship real estate developer Nakheel's $3.5 billion Islamic bond, or sukuk, due for maturity on December 14. Dubai World had $59 billion of liabilities as of August, making up the majority of Dubai's total debt of $80 billion. International banks' exposure related to Dubai World could reach $12 billion in syndicated and bilateral loans, banking sources told Thomson Reuters LPC. A statement from the Dubai government is expected on Monday, when the markets reopen following an extended break for Eid, a religious holiday observed across the Gulf region. LINK Link to comment Share on other sites More sharing options...
flamy Posted November 29, 2009 Share Posted November 29, 2009 Intha navu valisundha??:(( i wasnt laughing abt dubai mate :icflove: Link to comment Share on other sites More sharing options...
Pioneer Posted November 29, 2009 Share Posted November 29, 2009 Dubai is in deep "faeces". Link to comment Share on other sites More sharing options...
Guest Gunner Posted November 29, 2009 Share Posted November 29, 2009 ABU DHABI: Abu Dhabi, capital of the United Arab Emirates and one of the world's top oil exporters, will "pick and choose" how to assist its debt-laden neighbour Dubai, a senior Abu Dhabi official said on Saturday. "We will look at Dubai's commitments and approach them on a case-by-case basis. LINK Classic arab blackmail and cherry picking. :winky::winky: Link to comment Share on other sites More sharing options...
champ Posted November 29, 2009 Share Posted November 29, 2009 In simple words Dubai was built on a giant credit card. As the article says Dubai doesn't have oil reserves. People conveniently think Dubai = UAE, no sir it isn't. The UAE consists of 7 emirates - Abu Dhabi, Dubai, Sharjah, Fujairah, Ras-al-Khaimah, Umm-al-Qwain and Ajman. Abu Dhabi is the true financial and oil powerhouse, they have all the money. How then did Dubai build all those superstructures and invest across the world? Through funding from Abu Dhabi, Saudi and Kuwait. Then there were all those expats from all over the world who sunk their life's equity into this hole in the desert. When those economies started faltering through lower oil prices, the flow of investment stopped and the switch was turned off on Dubai. The massive quantity of liquidity from across the world both legal and conveniently legal had created an enormous asset bubble (large quantity of money boosting up the price of a small quantity of commodity, in this case real estate). When the liquidity dried up, Dubai without any own equity has just fallen apart. The Dubai government's claim to safety was they considered all these inflows as own equity when it is clearly just external commercial borrowings and nothing more. Now all we have to wait for is to watch the Englishmen who took control of Dubai to run helter-skelter if they haven't already done so. in short .. they are in debt ... :--D Link to comment Share on other sites More sharing options...
Sooda Posted November 29, 2009 Share Posted November 29, 2009 Abu dhabi will get to own half of dubai as a result of any rescue. Link to comment Share on other sites More sharing options...
Jadoo Posted November 29, 2009 Share Posted November 29, 2009 Looks like Dubai is gonna be pwned by Abu Dhabi!!! I read a interview by the leader of Dubai couple of years ago, he seemed like he was someone who had his head screwed on, but it showed that he was over ambitious and wanted Dubai to grow too quicky too soon. I personally felt that a place like Dubai was and still is a great place for Hedge Funds and Investment banks, especially those located in Britain, as the 50% tax rate wil be introduced and drive this financial industries away from London. Link to comment Share on other sites More sharing options...
Sachinism Posted November 30, 2009 Share Posted November 30, 2009 The main stock markets in Dubai and Abu Dhabi have dived at least 6%. The falls came after Dubai's property developer, Nakheel, asked for trading of some of its Islamic bonds to be suspended. Shares are trading for the first time since the state-owned property company Dubai World asked for an extension on repaying its debts. http://news.bbc.co.uk/1/hi/business/8385164.stm Link to comment Share on other sites More sharing options...
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