lets see what was said here few months back
1-"gold is heading for $900 per ounce next year and you can get (20 to 1) leverage much better than a property mortgage where you get 8/1 20% down payment on average "
it reached $892 / ounce today second week of 2008
2-"prices will pick up again very soon
price of a studio flat in ic should be around 400,000AED
no drop no peg it will never happen "
prices did move up to almost 400,000AED for a studio and yes no depeg
3-i did say buy gold now (at the time)property later
so lets see
it would cost you approx. 122 ounces of pure gold or 3.8KG which makes buying now cheaper than last time calculations.
i assumed gold at 892/ounce and studio flat 400,000AED
from the above price of gold which means higher inflation than last time (if we assume gold is a global indicator) buying today is cheaper
therefore property prices should go up more to catch up with gold(or inflation)
prices go up with high inflation and go down with restrictions such as rent cap
so i guess lower property prices at the moment are reflecting the rent cap reduction from 7%to 5% and maybe to the unknown
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