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Property Investment Abroad instead of UK

My brother has perhaps spotted the 'next big thing' which is property purchases in Dubai. The laws on freehold for foreign nationals have been relaxed (i.e. they are not stopping anyone) for 2 new development areas in downtown Dubai.

Some of the studio flats are on sale for £100,000. The 1 and 2 beds go up to £200,000. I have made enquiries and there are no studios or 1 beds left, just a few 2 beds. Another development is beginning scheduled for completion Winter 2005.

Does anyone have any opinions, or articles they've read on this particular area that they'd want to share with the group?

A couple of things are niggling me:

1) The old adage "if it sounds too good to be true...". £100,000 seems remarkably cheap, what's wrong with them? Are they next to a rubbish dump?

2) Possible ramifications of tying up capital in a post 9/11 Arab country.

But there is also the saying "nothing ventured, nothing gained." This could well be the next hotspot, especially considering the wealth of a country like Dubai. I'm sure if many of us had our chance again in the early 90s we'd have bought up large swathes of Notting Hill or the old Docklands if we could have. I might kick myself at missing the chance for a £100,000 spot in a few years, especially if the banks in Dubai offer remortgaging and BTL services like in the UK. Who knows what fortunes might be made?

Any ideas for further research. Or do your instincts say "don't touch with a bargepole"?

Reply to
Alex Peters
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excuse my ignorance. but why do you think 100,000 is CHEAP ? especially in Dubai. it may be cheap in some shitty part of London but it isn't cheap elsewhere in the world.

Reply to
jsa

Why does that sound cheap? Are you comparing it with the cost of similar properties in the same area? If not, what are you comparing it with?

Reply to
Chris Blunt

£100k may be cheaper than London and SE England, but it is pretty expensive compared to the rest of the world.

I don't know what typical salary levels are like in Dubhai, but I doubt they would stretch to a £100k studio flat.

Reply to
Jonathan Bryce

Salaries are determined by nationality. A typical employee (teacher or nurse) from a developed country might earn 30k or so. Some employers throw in accommodation, flights and school fees and pay less. There is no income tax. A teacher or nurse from an undeveloped country might earn 8k. A cleaner from Pakistan could earn as little as 1k per year. Some employers don't bother paying anything. I could go on.

Basically we do not know what a rich/poor divide is in this country.

In the UAE there are plenty of people, local and expats from other countries, who value image. I am sure that, should this development be marketed as being sufficiently "exclusive", buyers will be found. Certainly there are people there who wont speak to you unless, for example, you own a mobile phone and a Toyota Landcruiser.

I used to like holidays with sun and sand until I went to work in the UAE for a couple of years. There I saw enough sun and sand to last the rest of my life. Had I 100k to spend on a property with no worries about income, I would go somewhere with good people, good weather and good scenery. If you can find anyone who puts Dubai forward as qualifying on one of these three points I would be surprised.

Reply to
dp

Might be worth getting more opinions from the various expat sites. Try the TMF overseas property forum via

I believe the current property boom and prices are reflected globally. Look at The Economist reports on the subject, they might also have specific information on Dubai.

As always, judge it on fundamentals and risk vs reward.

hth

Daytona

Reply to
Daytona

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