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Homes From Hell In Dubai

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It should be interesting, especially the "Arab" attittude to people who don't pay their debts.

Homes from Hell

New series

Thursday 01 July

9:00pm - 10:00pm

ITV1 London

1/4

First in a new documentary series. Today's episode looks at the British victims of Dubai's property crash. While the property boom was in full swing, they paid out thousands for brand new, state-of-the-art homes, but now the recession has left them with nothing. The programme meets the couple who invested in a yet-to-be-built ski resort, a family who were forced to flee in the middle of the night to avoid jail, and a man who travelled to Dubai to meet the developer who took his money but failed to build any apartments.

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It should be interesting, especially the "Arab" attittude to people who don't pay their debts.

You have to laugh at a few things :

- British victims of Dubai's property crash

- invested in a yet-to-be-built ski resort [in Dubai?]

I wonder whether the penny will finally drop : owning a home at anything more than a 3.5x income multiple is speculation. Owning any homes beyond your principal residence is speculation.

Sometimes speculation works : sometimes it doesn't. Speculating with money that one can't afford to lose is stupid. There are no victims of speculation.

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I do hope they feature the two 'designer' Dubai developments I read about a couple of years ago.

Everything down to the towels and dinner plates was going to be Armani/Versace (or whichever labels they were) and they were going to install under-sand cooling on the beach, so that the owners wouldn't burn their feet in high summer.

As I recall, ownership was by invitation only - they couldn't have just anybody permitted to share their exclusive designer dream. :P

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You have to laugh at a few things :

- British victims of Dubai's property crash

- invested in a yet-to-be-built ski resort [in Dubai?]

I wonder whether the penny will finally drop : owning a home at anything more than a 3.5x income multiple is speculation. Owning any homes beyond your principal residence is speculation.

Sometimes speculation works : sometimes it doesn't. Speculating with money that one can't afford to lose is stupid. There are no victims of speculation.

Typical HPC drivel. I haven't got one. Everyone who has, must be a cheat or a liar or stupid.

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Typical HPC drivel. I haven't got one. Everyone who has, must be a cheat or a liar or stupid.

I own a house in a rational market and rent one in an irrational market.

I don't think that I am a cheat, a liar or stupid.

[Typo]

Edited by LuckyOne

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I have own a house in a rational market and rent one in an irrational market.

I don't think that I am a cheat, a liar or stupid.

I think something has got lost in translation somewhere.

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The programme meets the couple who invested in a yet-to-be-built ski resort

Some things are just beyond parody.

Probably invested in a yet-to-be-built beach resort in Greenland as well.

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Some things are just beyond parody.

Probably invested in a yet-to-be-built beach resort in Greenland as well.

Dubai does have a ski resort, (and presumably Greenland has beaches too.)

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You have to laugh at a few things :

- British victims of Dubai's property crash

- invested in a yet-to-be-built ski resort [in Dubai?]

I wonder whether the penny will finally drop : owning a home at anything more than a 3.5x income multiple is speculation. Owning any homes beyond your principal residence is speculation.

Sometimes speculation works : sometimes it doesn't. Speculating with money that one can't afford to lose is stupid. There are no victims of speculation.

Whether or not your 3.5 times rule of thumb is right or not ( I don't think it is) I think the generalisations you make a way off the mark.... there are plenty of people who but second homes, holiday homes or whatever and their principal motivation is not speculation ( of course any person would do what they do when they buy their own home, which is try and make sure they don't pay too much for it and try and think about what might happen to it financially in the future)....buy to let is clearly speculation first but second homes, holiday homes etc I think are anpother matter and I think you might have become a little detached from the real world if you think speculation is peoples primary motivation ( its about as primary as sepculation is in the purchase of the first home).

And finally of course your statement that their are no victims of sepculation is of course way wide of the mark.

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Whether or not your 3.5 times rule of thumb is right or not ( I don't think it is) I think the generalisations you make a way off the mark.... there are plenty of people who but second homes, holiday homes or whatever and their principal motivation is not speculation ( of course any person would do what they do when they buy their own home, which is try and make sure they don't pay too much for it and try and think about what might happen to it financially in the future)....buy to let is clearly speculation first but second homes, holiday homes etc I think are anpother matter and I think you might have become a little detached from the real world if you think speculation is peoples primary motivation ( its about as primary as sepculation is in the purchase of the first home).

And finally of course your statement that their are no victims of sepculation is of course way wide of the mark.

I should have tightened up my language a bit.

People who buy second homes, holiday homes etc might not be motivated by speculation but they are exposed to the same consequences as those who speculate. House prices can go up or down.

I agree that there are victims of speculation. The victims are not the speculators of course : they only bear some of the costs of speculation that they entered into willingly and get all of the rewards.

I agree that the 3.5 times rule is an oversimplification and is a proxy for sustainable mortgage servicing.

A slightly better rule might be that mortgage granting criteria should include a maximum mortgage amount determined by the payment on a repayment mortgage with an amortisation period of the smaller of 30 and (65 - age) priced at a very long run average interest rate being no more than 30% of gross monthly household income with total debt servicing (including the mortgage, credit card balances, car loans etc etc) being no more than 40% of gross monthly household income.

For a 35 year old and a long run average interest rate of 8.0%, this means a mortgage of 3.38 times earnings. A realistic house price would be the deposit (25% minimum) plus 3.38 times earnings as long as they don't have much other debt.

If my arithmetic is right, someone with a 25% deposit who is 35 or younger can realistically afford a house that costs 4.5x earnings as long as they don't have much other household debt. The existence of quite a bit of non-mortgage debt would probably push the 4.5x multiple lower.

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Whether or not your 3.5 times rule of thumb is right or not ( I don't think it is) I think the generalisations you make a way off the mark.... there are plenty of people who but second homes, holiday homes or whatever and their principal motivation is not speculation ( of course any person would do what they do when they buy their own home, which is try and make sure they don't pay too much for it and try and think about what might happen to it financially in the future)....buy to let is clearly speculation first but second homes, holiday homes etc I think are anpother matter and I think you might have become a little detached from the real world if you think speculation is peoples primary motivation ( its about as primary as sepculation is in the purchase of the first home).

And finally of course your statement that their are no victims of sepculation is of course way wide of the mark.

Yeah all true and we looked at a holiday flat back in the 90s. To holiday in - radical huh?

Just one thing, could all the people who didn't buy speculatively just shut the f*ck up about how much their holiday home has gone up in value. Its the glee that gets you down. Wealthy people are OK - they already had money and are cool about it, but the people who did this who had never got ahead financially in any way before are just intolerably joyous about their unexpected windfall. And to make things worse they often act as if there was some wisdom on their part in a matter of pure luck (& a corrupt govt.).

Telling those types repeatedly how much their little goldmine has gone down in the ongoing crash/correction is going to be very satisfying for the poor souls who are unlucky enough to work with or be closely related to one of them.

Edited by xux42

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I got stuck in Dubai en route for Korea thanks to Emirates a few weeks ago (don't ever fly Emirates BTW, they're rapidly turning into an expensive version of Ryanair)

I took a tour of the place to kill a few hours. Nice architecture, but i struggled to see the point of the place - one big, hot building site full of greedy people. If I had the money to live there, I'd live somewhere nice instead.

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If I had the money to live there, I'd live somewhere nice instead.

Me, too. My list of alternatives is now quite long.

BTW, isn't that Servalan in your avatar?

My heroine. I would just so love to be able to swan around in a long frock killing people. I wouldn't secretly fancy Blake, though.

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Dubai is Hell. Many Islamic states are concerned that people don't believe in heaven and hell so they built Dubai to prove at least one of them exists :D

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Could be interesting.

http://www.itv.com/tvguide/?intcmp=NAV_TVGUIDE2

First in a new documentary series. Today's episode looks at the British victims of Dubai's property crash. While the property boom was in full swing, they paid out thousands for brand new, state-of-the-art homes, but now the recession has left them with nothing. The programme meets the couple who invested in a yet-to-be-built ski resort, a family who were forced to flee in the middle of the night to avoid jail, and a man who travelled to Dubai to meet the developer who took his money but failed to build any apartments.

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"John" and "Claire" weren't speculating. No, of course not. Paying your rent with post dated cheques, everybody does that. In Dubai they do!

Edited by deflation

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"John" and "Claire" weren't speculating. No, of course not. Paying your rent with post dated cheques, everybody does that. In Dubai they do!

Going to prison for defaulting on a debt may seem harsh but I guess is ultimately fair and I am sure it would focus a few minds.

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Going to prison for defaulting on a debt may seem harsh but I guess is ultimately fair and I am sure it would focus a few minds.

They knew what could happen if they did not keep up with their payments, but still took on the debt.

Are we supposed to feel sorry for them? They are not the losers, the people who lent them money are.

Dubai is a harsh regime. The sensible thing is not to live in that over-priced, brassy, soulless, venal sh*thole in the first place.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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