ounces of gold

[eyeC]

FACTs

before
If you bought your flat last year it would have cost you approx. 108 ounces
of gold 3.375 KG of pure gold .

now
it would cost you approx. 141 ounces or 4.4 kg today
and it would produce for you approx.12 ounces ayear

so how good is this chicken i leave it up to u

1 kg= 32 ounce

if you have any comments about this chicken please post it here

[SAH]

eyeC you can predict future long term but for the moment it looks everything like a hotcake

[eyeC]

Apartments rebound
But the story for apartments had a twist in the tale. According to the HPI the average price of apartments fell by 10% in the first half of 2005, and then rebounded back in the second half, to close pretty much exactly where it started.

Now one factor that ought to be considered is that the general level of inflation in Dubai during 2005 was running at 15-20%, according to the National Bank of Dubai’s recent bulletin.

Hence if house prices are adjusted for inflation then apartment prices fell in real terms while, villas posted around a 10% real gain in value. On the other hand, rental prices soared by an average of 38% on Asteco’s estimate, so rental yields were up.

However, both the new price data and the rental yield situation support the argument to buy rather than rent Dubai property. The nominal value of an investment has been protected in 2005, and improved in the case of villas, while the rent that would be paid to live in a comparable property has gone up substantially.

End-users dominate
Agents report that the Dubai property market has swung from being a place for speculators out for a quick dirham to becoming an end-user market with today’s buyer typically being somebody who intends to live in a property, possibly for quite a long time.

It is not hard to see why. Rent rises in Dubai may have been capped at 15% for 2006, but this is still a lot on top of the 2005 surge in rental costs. Many longer-term residents are sitting down with a calculator to work out the total cost of buying and deciding that buying does make sense.

The HPI does not predict the future, but it does at least give a solid indicator of the recent past, and is not based on industry gossip but an accumulation of hard sales data. And if the pattern that has just been published continues into 2006 then we could see further support for nominal house prices, and even an improvement in popular locations and villas, which rather confounds doomsters who hope for a price collapse.

For with high general inflation nominal house prices may stay steady while the cost of everything else goes up considerably, though eventually property will move to catch up.
posted on Property & Investing

[eyeC]

it would cost you approx. 127 ounces of pure gold or 3.97 Kg today
and it would produce for you 11.26 ounce per year

weeek

[blinkybill]

Originally Posted by eyeC

it would cost you approx. 127 ounces of pure gold or 3.97 Kg today
and it would produce for you 11.26 ounce per year

weeek

Yes, it's a worry - our investment seems to be declining in value (unless your balance sheet is in US$ or Dirhams). I think this is mainly a result of the decline in the US$. Maybe our best hope is that the UAE drops the peg to the dollar.

On the positive side, Dubai real estate is becoming more affordable for investors with, say, GBP, EUR or AUD. Maybe this will help bring more buyers in.

[wayneis]

What about the Euro and the US Dollar...60% appreciation against the dollar since 1999
The continued shortage of Villas and the demand outstripping supply....I am comfortable investing in this section of the market, more reserved when looking at Apartments.

I would like more information on the upcomming condiminium Law as well as the forth comming Time Sharing Law and Short Term Rental Law all which will effect my investment out look and future stratergy. Lets hope they get it write the first time round with out over regulating the market but still providing much needed checks and balances to maintain investment.On that note any one tried to deal with the Dubai lands Department recently? I tried making an enquiry last week ...threw the towel in after 4 phone calls...

I also read the following which is a free, quick-reading daily e-letter on world currencies and economic trends read The daily Pfenning

[eyeC]

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

[eyeC]

enforcing the law is whats important

regarding the escrow account havnt seen one advertisement mentioning

sales with escrow account and they are all new developments it will be

better with dubailand off plan properties

[eyeC]

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

[eyeC]

buy gold now property later