View Single Post
  #36  
Old 11-06-2007, 02:08 PM
dave3076 dave3076 is offline
Active Member
 
Join Date: Jun 2007
Posts: 23
Default

Quote:
Originally Posted by stumbled
7.5% nett is my figure after just deducting 2 charges and i have also mentioned if you live in Dubai then the tax free situation,managing the property yourself(one or 2 is ok but then if you have 20 you have to get professional) does help. But, remember these properties are meant also for people who live in India, pakistan,the UK ,USA etc etc and tax has to be paid on your rental return, flight tickets stay in Dubai ,completion costs,void periods,furshings etc etc.
If you want to go into investment yields in the UK,well, being a professional landlord for 10 years the market currently works is adding value to run down properties and moving on,rental yields are as low as 3%.
The only reason, i think property will stagnate if it hasn't already is rates are on the up world wide,completion of alot of projects bringing in supply,investors world wide feel the squeeze as cheap money disappears, then you could always argue that in New zealand with rates of 7.75% hasn't brought about a crash,but then Dubai is still expanding and projects crop up every month,if not every week and most importantly majority of people come there temporarily not for a life time and those who retire only do so cause it's a TAX FREE state, and not for the weather. Is this tax free state going to remain tax free ???
I am sure you are aware with banks already offering rates of 6.3% on your cash and borrowings if not fixed upto 7.5%, you are better off putting your cash in saving accounts .
Im all ears for a bank account that provides 6.3% net without severe restrictions on a sum of 50k sterling. With respect, the point wasnt about whether you should hold cash right now or not, it was in regard to your comment of SELLING right now. I have for all intense and purposes a dollar asset on a promising development with lots more to come, thats yielding 2 to 3 base points above british interest rates, rising in value(which granted could change) with the dollar sitting at highs against sterling. I totally agree with your analysis on new builds yielding 2 to 3% in the Uk hence i suggested you`de be looking a long time.