# Moving to Abu Dhabi - to buy or not to buy??



## sumonhoque (Sep 2, 2011)

Hi Guys,

I am moving to Abu Dhabi next week.

My company will provide accommodation for 1month, within that time I have to find my own place.

Initially I wanted to rent for 6months and then possibly buy an apartment.

However, everyone I have spoken to tell me not to buy.

What are the risks associated with getting a mortgage for a place that is already built and ready to move in.

It works out cheaper than the rent per month, also you are paying into equity rather than wasting money on rent. 

Even if you lived for 4 to 5 years and moved back home, you could either sell the property and get your equity or you can just rent it via an agent.

Why are more people not doing this? Am I missing something??


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## Akhils39 (Aug 31, 2011)

C'mon dude don't care wat people say if u have enough 
Fund to buy a mortgage go ahead. There are many options like Rem Island.


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## sumonhoque (Sep 2, 2011)

Akhils39 said:


> C'mon dude don't care wat people say if u have enough
> Fund to buy a mortgage go ahead. There are many options like Rem Island.


But are there are any risks? If it was, then i could understand that there is a chance it may not be built on time or not built at all!

The only other thing I could think is, the banks or gov in UAE start adjusting the interest rates, so you suddenly start paying more per month. Can they do that? Have they historically done that?

Is there a product in the middle east mortgage market that is fixed?


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## sumonhoque (Sep 2, 2011)

** if it was 'offplan' **


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## 4drsupra (Sep 1, 2010)

- construction here never finished on time so if you are looking at something that isnt built yet...ur contract at work may actually end before your house closes...

- having that big of a debt isnt a good thing here as they are not forgiving if you somehow miss a payment whether it be to your fault or not...u actually end up in jail...so I guess what most expats try not to deal with debt unless they have too....

-most expats in here have accomodation for free so I do not know of anyone currently who actually indulged in buying a property and from what I hear it is a very painful task trying to settle everything from your mortgage to the approval to buying a house its not as much fun as say back home.

-selling is also hard from feedbacks as most of the locals actually prefer to buy new homes more than used(how credible is this statement I do not know)


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## sumonhoque (Sep 2, 2011)

Thanks for that. Unfortunately, I only get free accommodation for a month. So I have to think of the most effective of working my money when it comes to living.


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## TallyHo (Aug 21, 2011)

It's unlikely that renting will be more expensive than owning. I've done the calculations a few times and owning never came out to being cheaper than renting.

Remember that as an owner you are required to pay maintenance fees on top of the rent. Maintenance fees are not cheap and will only go up with time. 

In the beginning of a mortgage most of your payments will go solely to the interest and only a small amount will be used to pay down the actual mortgage. You may find that after 4-5 years you really haven't paid off much of the mortgage.

Interest rates can be changed at will by the bank. Quite a few people thought they were getting fixed interest rates but the banks changed the rates without warning and there was nothing the mortgagee could do.

Property prices are still declining. There's no telling where the decline will end.

Employment contracts mean nothing out here. You may think that if you have a 3-year contract you're guaranteed a job for three years. Unfortunately that isn't the case. The UAE isn't a country where you want to find yourself unemployed and saddled with a large mortgage. 

As expats it does pay to be able to pack up your bags and leave at a moment's notice. Being tied to property in the UAE is restrictive. 

For some people it's worthwhile to buy property but it is always a gamble. 




sumonhoque said:


> Thanks for that. Unfortunately, I only get free accommodation for a month. So I have to think of the most effective of working my money when it comes to living.


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## fcjb1970 (Apr 30, 2010)

Risk!

This is the UAE, and anything can happen. What seems like a very secure job/project may change within no time (trust me, I have experience in this regard).

Someone told me when I moved here, never get in debt. In my opinion outside of a lease I would never commit to payments of any kind. No loans ever.


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