Quote:
Originally Posted by georgihh
Much better statement
Now we talk business
I don’t know where you come from but Dubai is nothing special
People made money from properties for the last 5 years all over the world.
For example in India some people triple their money in less than 3 years after tax ,for just buying and reselling properties.
The difference between Dubai and the rest of the world is that Dubai is full of surprises
Like the shopping festival. But the surprises can be very harsh some times. At the moment the government is trying to cool down the Dubai boom with very strange tools. They know that the property business won’t last forever and they want a real business, but the real business means real life and this is not happening in Dubai.
How long is it going to last, I think is going to an end.
What next?
Next is that the people who have bought in Eden garden will suffer a big loss.
Dubai is heating up and needs to be cool down.
If this doesn’t happen the engine will blow
And who is going to fix the engine – the people who have bought in Eden gardens
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From the looks of it, your investment model is flipping. Dubai is not a flipping ground anymore. Prices have shot up and anybody buying blindly could get into distress.
Nobody can predict property markets. Nobody knows when they will move down, neither you nor I or for that matter the best property gurus in the world. I do agree that the markets are over heated but investors who have bought sometime back should not see any harsh repurcussions.
I would still invest in Dubai as I follow the cash flow model and as long as I am on positive cash flow in terms of rental VS EMI, I do not care if the markets crash. correct or fall. Property markets are cyclical and eventually will come up. People might have made money in the last 5 years and will still make money if they are willing to go long term with their investments.
There are risks in real estate. If you have your numbers right, nothing can go wrong. Population is increasing but land isn't and as time passes land is going to be more dearer and dearer.
Dubai sports city will do very well when the full infra structure comes in. I have not invested there but it is on my list for later this year. Don't forget the acadamies coming up. Dubai will be competing with the world for international events and they will go all out for it.
For investors who are willing to hold, Eden gardens will do well. For those who cannot hold and are uneasy, then the only choice is to quit. If I were an investor in Eden gardens and if I had bought it sometime back, I would not be too concerned about it.
I still stand by the fact that real estate tends to do well in the long run. If one feels that Dubai is going to end, then they should not be investing in Dubai and should try other emerging markets.
Define real life if it's not available in Dubai. I have been in Dubi since my birth and I have enjoyed the comforts this place has to offer.
Dubai is not trying to cool down the market with strange tools. I don't know what you mean by that. They were not prepared for such a boom and that's why they cannot handover buildings to investors because there is no power. There is no such hidden agenda by the Govt as they have better things on their mind.
Dubai investing is not like before where you bought and could sell and make money. Now one has to use brains and not buy blindly.
Regards
Roshan