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bazzzzzzz

Irish Property Speculators Get Sucked In

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http://www.timesonline.co.uk/newspaper/0,,...2113703,00.html

Ireland: Comment: Jill Kerby

Beware shifting sands if investing in Dubai

AER LINGUS may not have filled its inaugural flight to Dubai last Tuesday, but there were plenty of people at the Dubai property exhibition at the RDS last weekend who said they'd be booking flights in the near future to check out the country’s real estate boom...

The concept of this glittering city in the desert, with its combination of commercial and financial centres and world-class tourist, sport and healthcare facilities, is a remarkable one. The danger of property exhibitions, however, lies in the glossy front they put on everything, from the brochures and glass- encased scale models of buildings still in the planning stage to the sales agents’ sharp suits.

What the promoters don't emphasise is that Dubai will be the world's biggest construction site and traffic jam until at least 2010.

When you buy a property there, you automatically receive a residence permit, but it must be renewed every three years. There is no conveyancing system for property purchases. The developers and agents offer to undertake all contract exchanges on your behalf (not a good idea).

The emirate does enjoy year-round sunshine (and indoor skiing), but this comes with 40C daytime temperatures for about six months of the year.

Nearly every promoter at last week's show was offering rental guarantees of about 7.5% per annum for the first two years. Since so many thousands of apartments and houses are still being built and have as yet no tenants, this is just another case of handing you back some of your own money to secure the deal. Such returns may not be sustained.

According to official government of Dubai literature, the average per capita income is about $20,000 (£16,500) and rising. While this makes it among the highest-paying workplaces in the Gulf, even with a tax-free salary there won't be too many takers for modest £250,000 apartments with monthly rents of £1,560 as this is more than the average monthly pay cheque.

Meanwhile, you take up the all-inclusive management and maintenance packages from the promoter at your peril: one offered me such a service for the equivalent of 25% of the rent.

But Irish property investors are insatiable, greedy and naive, which is a dangerous combination.

One woman I spoke to, who was thinking of buying a two-bedroom apartment in a soaring tower overlooking the Gulf for investment purposes, said: 'I was told property here comes entirely tax-free.'

'Sure, in Dubai,'I replied. 'You still have to pay income tax and capital-gains tax on your return here in Ireland.'

'What?' she said. 'I don't believe you.' :blink::blink::blink:

Irish Property investors? The same could be said of most property investors.

With the exception of those who have recently sold millions of house building companies' shares recently

Sorry-didn't see Duplex' post highlighting the bubble in Ireland. All part of the same story.

http://www.housepricecrash.co.uk/forum/ind...showtopic=27190

Edited by Baz63

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One woman I spoke to, who was thinking of buying a two-bedroom apartment in a soaring tower overlooking the Gulf for investment purposes, said: “I was told property here comes entirely tax-free.”

“Sure, in Dubai,” I replied. “You still have to pay income tax and capital-gains tax on your return here in Ireland.”

“What?” she said. “I don’t believe you.”

Yup, just about sums-up the hard-nosed ultra-savvy Richard Branson wannabes pushing the prices up around the UK, Ireland, Southern Spain and ... Bulgaria :P.

"Burn Baby Burn"

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  • 301 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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