# Dubai Rents up 100% Due to Expo 2020 - Pathetic



## JBY (May 17, 2011)

Real estate experts in Dubai finally admit that the vast majority of rent increase is due to "Expo 2020" artificial hype / imaginary boom

Landlords 'using Expo 2020' to raise rents in Dubai | GulfNews.com

u guys do realize expo 2020 isn't really all that, the expo event has always been a non event in history, good for Dubai but not worth annual 100% rental increases anticipating something that will happen 7 years from now

it's really unsustainable for all wage categories.

I love Dubai and the progress and leadership of this city is amazing, but this imaginary hype needs to end, these are people's lives that are being ruined by constant 100% rental rises.


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## Tropicana (Apr 29, 2010)

This was predicted on this board, and there were posters asking the same thing;_ why should an event 7 years later lead to double digit rise in rents_?


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## nerd_deluxe (Nov 19, 2013)

At least it's getting some press, maybe something can be done about it.

Lots of folks at my work are talking about it, and folks who have been here for a few years have a very dim view of the landlords. What's tough for us is that I just got my residency visa, so now can rent. Not really sure I'm thrilled about doing so now. We looked at a place in the Marina, which we expected to be expensive, but it was laughable.

At this point, we're debating what to do. honestly, for my work, it may be a limiting factor on staying in Dubai. We're not relocating much so we could get a feel for the place. I feel like I'm getting taken advantage of - not a great feeling...


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## londonmandan (Jul 23, 2013)

If the rents continue to rise we will look to relocate elsewhere.


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## twowheelsgood (Feb 21, 2013)

Just turn it into a buyers market. Refuse to pay more, downsize and wahtc the landlords suffer when they canbnot rent out their overprices properties. then their price drops and you can move back in.

The best solution is not to whine, but simply to downsize for a while and then upsize when realirty bites them on the a**.


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## Byja (Mar 3, 2013)

twowheelsgood said:


> Just turn it into a buyers market. Refuse to pay more, downsize and wahtc the landlords suffer when they canbnot rent out their overprices properties. then their price drops and you can move back in.


Meanwhile, in real life...

You downsize from 2BR into 1BR, paying almost the same rent. You also pay agent's commission, moving, DEWA/DU reconnection, etc. Something gets broken during moving. The old LL refuses to pay you your security deposit.
In the meantime, someone living in 3BR downsizes into your 2BR. That 3BR stays on the market for a month or two, and then someone from Palm downsizes into that as well.
So now we have a 3BR somewhere on the Palm which is vacant, cause it's owner want's to charge an arm and a leg for it. But he doesn't care if it's not rented out, he's not paying service fees anyway, it's one of his dozen apartments for rent, and he bought it for cash to put some detergent on his money anyway.

Dont's downsize unless you have to. Better stand your ground.


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## JBY (May 17, 2011)

Tropicana said:


> This was predicted on this board, and there were posters asking the same thing;_ why should an event 7 years later lead to double digit rise in rents_?


I also find it hilarious how some people are now suddenly "expo" experts, carrying Dubai EXPO flags and sticking 2020 stickers on their desks. When previously they never even heard about the expo event, pretty much no one ever knew or cared about it. Most STILL Don't really know what it is about.

It's a non-event in all the countries that hosted it in the past, i never ever heard of anyone saying "OMG i cant wait for the expo". It helps bring some development like exhibition centers and some minor infrastructure around it but that's it, and temporary "minor" increase in tourists.

Does not justify 50%-100% annual increases for the next 7 years


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## JBY (May 17, 2011)

Byja said:


> Meanwhile, in real life...
> 
> You downsize from 2BR into 1BR, paying almost the same rent. You also pay agent's commission, moving, DEWA/DU reconnection, etc. Something gets broken during moving. The old LL refuses to pay you your security deposit.
> In the meantime, someone living in 3BR downsizes into your 2BR. That 3BR stays on the market for a month or two, and then someone from Palm downsizes into that as well.
> ...


yes that's part of the problem, and i also think as a majority expat country and due to us being non-citizens, people just tend to bend over and take it here. 

So even after the fact the rental rises have been proven to be due to "imaginary" factors, have NOTHING to do with supply and demand (Clearly supply is still huge), people will stay pay 100% more for their rent without resistance.


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## Elphaba (Jan 24, 2008)

JBY said:


> Real estate experts in Dubai finally admit that the vast majority of rent increase is due to "Expo 2020" artificial hype / imaginary boom
> 
> Landlords 'using Expo 2020' to raise rents in Dubai | GulfNews.com
> 
> ...



Any existing tenant cannot have their rent increased by 100%. There are strong laws in place to protect tenants from landlords attempting this. The maximum increase is 20% (admittedly still painful!0 and that's only if the current rent is well below market rate and is permitted by the rent calculator.

Too many landlord are trying to evict tenants so that can charge higher rents, but they cannot just do that. A minimum off 12 months notice is required from renewal in a specific form and can only be for certain reasons.

That said, there is way too much hype in Dubai again and it is not justified at these levels.


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## TallyHo (Aug 21, 2011)

Hah. 

That might be me this summer. I do have to move out of my apartment and yes, this is a perfectly legitimate eviction as there's a new owner and there was a 12 month notice as he intends to move in (I've met him, very nice guy and I don't doubt his intentions but if I ever find out the place's rented again we're going straight to RERA courts). 

If I want to stay in a 2-bed I have to pay an extra 50-60K. Or I could pay the same and move into in a 1 bed. 

Or move somewhere really cheap like Silicon Oasis, but if I did that I'd be inflating their prices. 

What to do? It's hard to stand your ground when you need a place to sleep. 



Byja said:


> Meanwhile, in real life...
> 
> You downsize from 2BR into 1BR, paying almost the same rent. You also pay agent's commission, moving, DEWA/DU reconnection, etc. Something gets broken during moving. The old LL refuses to pay you your security deposit.
> In the meantime, someone living in 3BR downsizes into your 2BR. That 3BR stays on the market for a month or two, and then someone from Palm downsizes into that as well.
> ...


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## Byja (Mar 3, 2013)

TallyHo said:


> What to do? It's hard to stand your ground when you need a place to sleep.


If it comes down to it, I'll give you a room in my place. That way you get to stay in your precious TG. 

The way I understood 2WG is that instead of fighting a rent increase, one should simply move on to a cheaper place ("downsize"). You are, OTOH, being legally evicted. You don't have an alternative.


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## Fat Bhoy Tim (Feb 28, 2013)

TallyHo said:


> Hah.
> Or move somewhere really cheap like Silicon Oasis, but if I did that I'd be inflating their prices.


Even that's not so cheap now. 

A colleague just moved into a 1 bedder paying more than I pay for my 2 bdr flat. My rent will go up by at least 10%, but even that only brings me on par with him. His building is at least brand new, as mine was when I moved in 2 years ago in August.


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## londonmandan (Jul 23, 2013)

Someone in the same building as me is paying 12K more then what I am and I am in a 1 bed.


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## QOFE (Apr 28, 2013)

I'm hearing a lot of people are now downgrading. The new bubble has definitely started. It's ridiculous that RERA is helping the bubble to get worse by updating the rent calculator with rents that are way too high. There are so many properties standing empty and more are built. There is only a minority of ex-pats that are able to afford/willing to pay the new inflated rents.

I can't wait for the bubble to burst!:whoo:


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## rsinner (Feb 3, 2009)

QOFE said:


> I can't wait for the bubble to burst!:whoo:


There is no bubble 
its all based on fundamentals - ask any real estate agent or "property expert" who is quoted on radio shows and in newspapers


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## RandomDude (Mar 7, 2014)

The only thing is driving the prices are the Radio and Newspaper expert and Real Estate Consultancy agency.

Those counting on Supply and Demand, and Landlord will reduce because no one is renting are wrong.

Here is the news: The Land lord does not give a ..... . The investment is really peanut money to them, so whither the apartments/tower are occupied or not, they don't care.
So 1,2,3,4,5 years the apartment is empty, no Problems. We are not talking about some JOE who took a loan and bought an apartment at JLT. 

The big cats are controlling the market, and the real estate is just some fraction, so Empty or not, they want to sell on the highest price


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## rsinner (Feb 3, 2009)

at least in Dubai there are some laws controlling the amount of rent increase. in AD, they have removed the cap meaning at the time of renewal the tenant and landlord have to agree to a market rent. Rents in the entire city shot up upwards of 15-20% literally overnight. 
Luckily I had renewed before the rent cap was lifted, but probably after the expiry of the current contract I am looking at c. 15% increase or move out - no choice.


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## Fat Bhoy Tim (Feb 28, 2013)

londonmandan said:


> Someone in the same building as me is paying 12K more then what I am and I am in a 1 bed.


In Abu Dhabi during the boom days of 2008, I was paying 55k or so for a one bed. Someone in the same building was paying around 150k. 

Mental really.


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## Fletch1969 (Nov 12, 2011)

londonmandan said:


> If the rents continue to rise we will look to relocate elsewhere.


I'm seriously considering just that. This place is very shortly not going to be an economically viable proposition any more. Its a shame, in many ways I love living here, but I see a huge bubble about to burst. Living in the marina I see so many places around me empty, but landlords are refusing to negotiate.


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## Fletch1969 (Nov 12, 2011)

Elphaba said:


> Any existing tenant cannot have their rent increased by 100%. There are strong laws in place to protect tenants from landlords attempting this. The maximum increase is 20% (admittedly still painful!0 and that's only if the current rent is well below market rate and is permitted by the rent calculator.
> 
> Too many landlord are trying to evict tenants so that can charge higher rents, but they cannot just do that. A minimum off 12 months notice is required from renewal in a specific form and can only be for certain reasons.
> 
> That said, there is way too much hype in Dubai again and it is not justified at these levels.


There are laws and they give us some protection. The challenge is for anyone new to the city, or anyone that is forced to move because the landlord is selling to take their cash. I don't blame these landlords (as they are in it to make money like many of us are that have properties at home), but having had estate agents knocking at my door to view the place for sale before I even knew it was for sale, I'm left wondering what happens to my rent in 11 months time when its due to be renewed with a new landlord..


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## JBY (May 17, 2011)

:flame:


Fletch1969 said:


> I'm seriously considering just that. This place is very shortly not going to be an economically viable proposition any more. Its a shame, in many ways I love living here, but I see a huge bubble about to burst. Living in the marina I see so many places around me empty, but landlords are refusing to negotiate.


agreed, however i think rents will keep going up further and further, i recall in the 2003-2008 Boom, rents for Studios in Dubai went up to 85K no kidding, 1bed 110K+ and like another poster said Abu Dhabi was about 150K for a 1bedroom, i know he's not joking because i remember those prices  and looks like they are heading back there again (1 bed is 100K in Reem island already)

Salaries for most haven't kept up of course, no company will give people a 100% raise so forget about that. it's another bubble how long will it continue till it burst i am not sure, we maybe we are in for 150K for 1 Bedroom again  

crazy days


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## plckid (Jul 25, 2013)

is it wise to move to Ajman/Sharjah.??


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## Fletch1969 (Nov 12, 2011)

plckid said:


> is it wise to move to Ajman/Sharjah.??


Not if like me you work in Abu Dhabi.. 

The traffic through Sharjah is appalling; I know people who commute half again as long as I do to do a fraction of the distance. The rental prices in both Ajman and Sharjah are reasonable at the moment and if you can find a way to avoid the traffic, its worth a thought..


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## SgtRoswell (Apr 7, 2014)

I dont think this time the real state bubble going to burst. They have secured the market for at least 2020 because of millions of people expected to land here by 2020. Rents will have no limits now.


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## twowheelsgood (Feb 21, 2013)

SgtRoswell said:


> They have secured the market for at least 2020 because of millions of people expected to land here by 2020. Rents will have no limits now.


No they haven't - are you a Real Estate agent by any chance ?

Expo will last two weeks - it'll have negligible effect compared with the ordinary effect of seven years of general population growth and there is plenty of space already for that seven years of growth. If there was any real rise, it wouldn't happen seven years in advance.

Its yet another hyped up post from listening to too many people with vested interests.


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## TallyHo (Aug 21, 2011)

Agreed.

It was someone else on here who pointed out that the expected expenditures on the expo is comparable to the cost of building the new Al Makhtoum airport. But that didn't bring millions of new people here, did it? Hardly any people were aware the new airport was being built. 

Millions of people aren't going to move here without jobs. And there's no indication the job market is ramping up to hire millions of new people. The economy will no doubt continue to grow but not at the rate to hire _millions_ of people. Dubai is actually a pretty small city as cities go with a relatively small labour market, as all the people struggling to find work can attest. At least during the run up to the last boom there was an explosion of hiring, but I haven't seen any indication something similar is going on.



twowheelsgood said:


> No they haven't - are you a Real Estate agent by any chance ?
> 
> Expo will last two weeks - it'll have negligible effect compared with the ordinary effect of seven years of general population growth and there is plenty of space already for that seven years of growth. If there was any real rise, it wouldn't happen seven years in advance.
> 
> Its yet another hyped up post from listening to too many people with vested interests.


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## SgtRoswell (Apr 7, 2014)

twowheelsgood said:


> No they haven't - are you a Real Estate agent by any chance ?


Of course not ! I'm an Engineer by profession. 



> Expo will last two weeks - it'll have negligible effect compared with the ordinary effect of seven years of general population growth and there is plenty of space already for that seven years of growth. If there was any real rise, it wouldn't happen seven years in advance.


Yeah ideally it shouldn't happen seven years in advance, but it is happening. Real estate is cashing out expo 2020. 



> Its yet another hyped up post from listening to too many people with vested interests.


Interestingly you are absolutely right about vested interest. Thats what a layman does no?


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## w_man (Apr 16, 2010)

SgtRoswell said:


> Yeah ideally it shouldn't happen seven years in advance, but it is happening. Real estate is cashing out expo 2020.


You are forgetting that there's plenty of time between now and the expo to have a 'financial crisis' and then recover.

Who knows what will really happen but as most people here have already stated, it looks like a bubble, feels like a bubble - sure as hell is a bubble. Mainly because prices are going up but salaries aren't. People are moving to Dubai but no where near what the supply already is.

This kind of a market doesn't last. Anywhere! The real question is WHEN this bubble will burst because as it looks right now, soon Dubai won't be worth moving to. I have yet to pay out of pocket for my residence and the day it looks like this will change, is the day I'll be moving back home.


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## SgtRoswell (Apr 7, 2014)

w_man said:


> You are forgetting that there's plenty of time between now and the expo to have a 'financial crisis' and then recover.
> 
> Who knows what will really happen but as most people here have already stated, it looks like a bubble, feels like a bubble - sure as hell is a bubble. Mainly because prices are going up but salaries aren't. People are moving to Dubai but no where near what the supply already is.
> 
> This kind of a market doesn't last. Anywhere! The real question is WHEN this bubble will burst because as it looks right now, soon Dubai won't be worth moving to. I have yet to pay out of pocket for my residence and the day it looks like this will change, is the day I'll be moving back home.


My main point was that they are doing it very carefully this time while cashing out (rental caps in dxb and cap lifted in Abu dhabi). While rest assured in your posts, I'm also planning for an exit strategy :bolt:


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## MAW0504 (Oct 6, 2009)

Dubai real estate prices and rentals have stalled for six months as distressed sellers return « ArabianMoney

Take a read of this article. Very insightful. I don't necessarily agree with the description "distressed sellers" - more "disappointed sellers" as they will finally have to realise that they can't get the inflated prices they are asking. But, can you really give someone the title "Seller" if they just have a property they would be prepared to sell for daft, impossible to achieve money? No, a seller is someone who sells....and to sell at the moment, they are going to have to reduce and, yes, I am in real estate but am proud to be realistic and straight with my advice.

Why is there so much at unrealistic prices? Yes, Expo has to take some of the blame as it has been hyped beyond belief. It's a trade fair that will last 6 months and it's 6 years away, how can it benefit real estate really? Surely the hotel trade is the one that's mainly going to benefit? That's the general belief.

But no, the UAE want us to believe that Expo has forever cemented our future and a lot of (non) sellers have taken this as gospel and slapped more on their already daft prices. What shames me is that there are so many in real estate who do not know the market and go along with this rather than stick to correct principle and say "no, Mr X, that is too high, I am not interested in listing it". 

As you can see by this article though, there is a widespread realisation that we need a small correction. I've been telling my team to inform their clients of this for months. Unfortunatley, there are those out there who just want to bury their heads in the abundant sand around us and refuse to believe this market can ever go down again...


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## JonGard (Aug 18, 2013)

My company give me an apartment and I've been looking to move to a bigger one as my allowance is more than they spend currently.

Judging by the comments around town and on here I think I'll stay for now and see what happens. Don't want to get caught out.


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## arabianhorse (Nov 13, 2013)

JonGard said:


> My company give me an apartment and I've been looking to move to a bigger one as my allowance is more than they spend currently.
> 
> Judging by the comments around town and on here I think I'll stay for now and see what happens. Don't want to get caught out.


Is the allowance given to you in cash or do they pay landlord directly.
If latter, than your risk is pretty small, as you can always either:

negotiate a higher allowance or
downgrade back to where you were


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## Tropicana (Apr 29, 2010)

MAW0504 said:


> Why is there so much at unrealistic prices? Yes, Expo has to take some of the blame as it has been hyped beyond belief. It's a trade fair that will last 6 months and it's 6 years away, how can it benefit real estate really?


Hundreds of thousands jobs created and millions of people coming in means lots of housing needed to accommodate them. That is why prices will keep on rising.

And the Expo means a lot to Dubai and its residents,people are still driving around with Expo stickers and when Dubai won the bid, there were people from all walks of life celebrating and cheering for the victory.


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## JonGard (Aug 18, 2013)

arabianhorse said:


> Is the allowance given to you in cash or do they pay landlord directly.
> If latter, than your risk is pretty small, as you can always either:
> 
> negotiate a higher allowance or
> downgrade back to where you were


Sadly given as cash in my salary.


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## MAW0504 (Oct 6, 2009)

Tropicana said:


> And the Expo means a lot to Dubai and its residents,people are still driving around with Expo stickers and when Dubai won the bid, there were people from all walks of life celebrating and cheering for the victory.


Many without even knowing why. Except for that they have heard it will boost the economy....(and then they moan when it does and pushes prices up, oh the irony). 

Yes, it will create jobs but it won't be the transformation in fortunes that it's being made out to be. Expo is held every 2-3 years and hasn't put previous or forthcoming hosts into the public eye or total financial stability. Without Mr Google could you say where the last 2 or next 2 Expos were and are? Nope.

AND, the point of the thread was why have prices gone up 100% on the news of Expo? Your point about it creating so many jobs - let's assume that's right - did they all arrive on the same day then? Because that is the point being made....

 right back at you


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## Tropicana (Apr 29, 2010)

MAW0504 said:


> AND, the point of the thread was why have prices gone up 100% on the news of Expo? Your point about it creating so many jobs - let's assume that's right - did they all arrive on the same day then? Because that is the point being made....
> 
> right back at you



 was meant to depict sarcasm.......


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## Fat Bhoy Tim (Feb 28, 2013)

Tropicana said:


> was meant to depict sarcasm.......


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## MAW0504 (Oct 6, 2009)

Tropicana said:


> was meant to depict sarcasm.......


ah, then you need to start your post with a "but, surely...." otherwise it might get missed 

A subject that irks me. Can you tell?


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## arabianhorse (Nov 13, 2013)

MAW0504 said:


> ah, then you need to start your post with a "but, surely...." otherwise it might get missed
> 
> A subject that irks me. Can you tell?


Dont get your kickers in a twist mate. Chill!


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## arabianhorse (Nov 13, 2013)

JonGard said:


> Sadly given as cash in my salary.


No . Think of it as a bonus then, at least while it lasts.


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## MAW0504 (Oct 6, 2009)

arabianhorse said:


> Dont get your kickers in a twist mate. Chill!


ah, I didn't start my own post with "but surely" so my sarcasm was missed too. Winky face didn't do it either? :wave:


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## arabianhorse (Nov 13, 2013)

winky face made it look like you were getting off doing something naughty


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## nerd_deluxe (Nov 19, 2013)

arabianhorse said:


> winky face made it look like you were getting off doing something naughty


Doesn't naughty land you in chains around here?

But seriously, well - as serious as this thread gets, this kind of rubbish _IS_ pushing us out. Despite my brief time here (5 weeks), an offer has come up to move to Bangkok for a pretty cool job.

I look at all the rent garbage, random arrest criteria (I can't flip off someone who's earned it?), not to mention some of THE MOST gawd-awful television KNOWN TO MANKIND... And Bangkok looks pretty good. Having a Kiwi-owned Rugby-oriented pub helps!

Ahh, I don't know. Dubai is pretty cool, but looking at options, it gets tough...


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## arabianhorse (Nov 13, 2013)

nerd_deluxe said:


> Doesn't naughty land you in chains around here?
> 
> But seriously, well - as serious as this thread gets, this kind of rubbish _IS_ pushing us out. Despite my brief time here (5 weeks), an offer has come up to move to Bangkok for a pretty cool job.
> 
> ...


Aah Bangkok. Naughty with a capital C.
Im jealous. If you decide to take up the offer, good luck. Give us the name of the pub, im sure many here will'come visit.


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