Rate of Retun of Investments - Page 2

anwar khan · #11 10-11-2008, 03:12 PM

very good georgihh!!! I have read through this thread in which you looked very optimistic and there you are.....fantastic !!! so now what would predict for next year for IC???? How far a studio and 1 bed can go in terms of prices???
Regards,

Anwar...

georgihh · #12 10-11-2008, 04:48 PM

Quote:

Originally Posted by anwar khan

very good georgihh!!! I have read through this thread in which you looked very optimistic and there you are.....fantastic !!! so now what would predict for next year for IC???? How far a studio and 1 bed can go in terms of prices???
Regards,

Anwar...

I have a feeling we are approaching the peak.
But you never know suddenly the rest of the market can start going up again and can drag on the IC prices up.
But the advantage is that we are protected from the rental side 60k for studio and 80k for one bedroom

If you buy a studio now 500k and rent it out for 60k per year – you can’t lose
After 2 years the prices will not go down but might go up and this will be a bonus to your rent
Personally I expect slow growth of 10-12% for the next 2 years but if the banks open their pockets with a reasonable rates maybe we can see a growth of 25-30% per year.
I don’t think the bubble has burst yet they are patching it now to get some more air until explode

zombie · #13 11-11-2008, 04:21 AM

Why not look at it on a longer term, say 10 years. In that time frame you would have got back your capital value from the rental income, with no loans associated with the property. The whatever the sale price of your property is your net profit.

Today the markets are baad & prices HAVE fallen(PANIC SELLING/CASH FLOW PROBLEMS), but rental demand in IC remains very strong, so the rate of return on investments is higher than 10%. Where in the world can you get that. Thus according to me the prices will go up again(IC Specific thoughts here), but even if they linger around the price of 450k for studio & 625k for 1BR, I have to think long haul.

Also the lack of proper Bank Finance in IC has hurt the price movement of the Clusters. Hope once all properties have title deeds associated, then it may help banks to value the property & provide mortgages to buyers who intend on using it as primary residence.

BTW Geogeihh is right, there are times one feels like getting the hell outa here, but then there are always other issues that bring you back.

anwar khan · #14 11-11-2008, 09:47 PM

I dont think the bubble is going to burst ever bcz flats in dubai will always be required on rental and as long as we are getting around 10% rental yield we are safe..arent we?
I dont know how long is it going to take for title deeds for our flats prices might pick up after that ..I spoke to ARY about the title deed and they said might take 2 , 3 months...