This thread is just to let potential foreign investors who may not be aware that the US Dollar ($) has gained strength against the GBP Pound (£), Euro and many other currencies over the last few days. The UAE currency is currently pegged $1 = 3.67AED. The dollar is also forecast to strengthen further over the next few months.

Therefore any property prices you may have seen last week in AED will now cost more in Pounds and Euros etc.

For those who have already placed deposits unless you have a fixed rate forward contract in place with your currency supplier expect to pay more for your next instalment than you originally calculated.

For example a Brit who wishes to buy a property he saw on the market last week Wednesday 06/08/08 for AED 1,000,000 ($272,479) would have paid £139,082. However at todays rate 15/08/08 they would pay £145,772 thats £6,690 more in the space of a week. Im sure those who have already bought have a smile on their faces.

Anyway my point is it might be worth getting a forward contract now so you know for sure what you will be paying for your property.

Regards,

M.O.B

Good piece of info with a nice example.

Thanks

Roshan

Hey M.O.B ,

i am impressed but the practical evaluation of the monetary wizardry you have presented and informed the forum members ,it is so logical and helpfull.

sunil

Thank you, I am a genius and also real estate agent and mortgage broker in the UK and am use to breaking things down to help customers understand. Whether it be for return yields, mortgage calculations, growth or simply whether they will make money or not.

Makes sense. I always use a mortgage calculator to analyse a project, to see whether I will make money on the investment or not. Let me tell you, it has not failed me on any investments I have made so far.

These additional tools as you said breaks down the complex issue to something which can be easily understood.

Regards

Roshan

I think anyone that needs to be told about the strengthening dollar really needs to stop what they are doing and re-look at the whole thing again... I say this simply cause if they are this lapse on the exchange rate then they are prob going to mirror this along other aspects of the process - like what and where shall I buy - and from who & at what price... so if this is useful for you - good - but then just take time out and get someone to check out what you are doing!

Not everyone is a seasoned property investor or are confident and understand calculations that may affect the value of their money or investments. This is why I donated my time to these people. So give them a break mate.

Although the pound and euro are weakening against the dollar,I don't think its too late to buy in Dubai and make some money over the next 18 months.
Anyone who forward books their dirhams can make money both on the rising property prices plus the strengthening of the pound.If its true that the dollar gets to $1.55 against the pound as I;ve read is possible than this makes a huge difference.
It will be interesting to see what the effect will be on the amount of investors from Europe.
A decline would I imagine see a drop in prices in Dubai.
However,its the wrong time to invest in property in the UK especially so even with a weak pound there should still be those looking to buy in Dubai.

I completely agree with you I actually sell property in the UK (more like trying to sell in the last 5 months) and this has been the worst market ive worked in for the last 5 years ive been working as real estate broker. Money is to be made abroad and I personally still think Dubai is a safe bet and like you said taking advantage of a forward contract may even benefit you more if the dollar continues to gain strength.

With all the uncertainty in the world probably the best thing is to do is hold on to your money and wait for prices to fall, see if you still have a job and make sure that you dont lose your existing home. Not a good time for investing overseas if you are in the UK.