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Old 05-07-2021, 11:14 PM   #5901
Eeyorefora
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Re: Home ownership

Quote:
Originally Posted by Melkerson View Post
If you like the house and you're going to be there for 20yrs, I don't know what you accomplish by selling. Any profit you make will be gone when you buy the next place or rent.
This.



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Old 05-08-2021, 06:24 PM   #5902
de captain
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Re: Home ownership

Quote:
Originally Posted by KemoSabeNada View Post
Having a bit of a dilemma these days.

I live in the Middle East and plan to stay until retirement, which is ~20 years down the line. Tired of paying rent here I decided to buy a house in an established and well known neighborhood in November last year. The prices hadn't been that low since 2010 when I bought and I felt I got a good price.

Right now we are experiencing an insane surge here. Prices for some areas/houses has gone up 40% since January. This is mostly due to this country (United Arab Emirates) being the only place on the planet that is fully open for business (no quarantine on arrival, everything is open as usual, booze is flowing etc). Plus they just starting giving out residency status and potential citizenships for investors. Of course it also helps that there is no transparency here, nobody cares where the money comes from. Right now they have an influx of Chinese, Indian and Russian buyers, but I also see more Americans than before.

When I signed the papers I paid ~993k USD. That was slightly above the median because of the location within the community. I put in roughly ~100k in renovations; did all the bathrooms, new floors, new deckings outside, polished the kitchen, smart home stuff etc. The same exact house (in a worse location) now sells for 1.3-ish, without any renovations whatsoever. The agent who handled the sale on behalf of the previous owners says I can expect to get 1.6 now.

Let's say we remove the agent bullshit tax and say I could get 1.5, that would be a rough net profit of 220-250k (I had to cover all the sales costs when buying which is the norm here). I think a lot of people would take the money and run, but I spent a lot of time on the renovations, it was extremely frustrating at times and the number one issue I have is that I sell and buy in the same market. I would have to go back to renting again, or go for something run down and rebuild again which I dread right now as I just finished this one.

Would you sell if you're in my shoes?

Thanks for reading!

Ps; Here the buyer carries most of the cost of the sale/purchase. I will have pay around a small fee for the marketing, the agent fees and government fees are the buyer's responsibility. Also there are no taxes here since that is haram, so I will pocket the rest of the profit outright.
List for 1.95, and don't take less than 1.8. Doing so makes all decisions easy.
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Old 05-08-2021, 06:49 PM   #5903
Dream Crusher
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Re: Home ownership

Quote:
Originally Posted by KemoSabeNada View Post
Having a bit of a dilemma these days.

I live in the Middle East and plan to stay until retirement, which is ~20 years down the line. Tired of paying rent here I decided to buy a house in an established and well known neighborhood in November last year. The prices hadn't been that low since 2010 when I bought and I felt I got a good price.

Right now we are experiencing an insane surge here. Prices for some areas/houses has gone up 40% since January. This is mostly due to this country (United Arab Emirates) being the only place on the planet that is fully open for business (no quarantine on arrival, everything is open as usual, booze is flowing etc). Plus they just starting giving out residency status and potential citizenships for investors. Of course it also helps that there is no transparency here, nobody cares where the money comes from. Right now they have an influx of Chinese, Indian and Russian buyers, but I also see more Americans than before.

When I signed the papers I paid ~993k USD. That was slightly above the median because of the location within the community. I put in roughly ~100k in renovations; did all the bathrooms, new floors, new deckings outside, polished the kitchen, smart home stuff etc. The same exact house (in a worse location) now sells for 1.3-ish, without any renovations whatsoever. The agent who handled the sale on behalf of the previous owners says I can expect to get 1.6 now.

Let's say we remove the agent bullshit tax and say I could get 1.5, that would be a rough net profit of 220-250k (I had to cover all the sales costs when buying which is the norm here). I think a lot of people would take the money and run, but I spent a lot of time on the renovations, it was extremely frustrating at times and the number one issue I have is that I sell and buy in the same market. I would have to go back to renting again, or go for something run down and rebuild again which I dread right now as I just finished this one.

Would you sell if you're in my shoes?

Thanks for reading!

Ps; Here the buyer carries most of the cost of the sale/purchase. I will have pay around a small fee for the marketing, the agent fees and government fees are the buyer's responsibility. Also there are no taxes here since that is haram, so I will pocket the rest of the profit outright.
Your post is pretty much akin to asking us if we think the market will fall. Nobody knows. Certainly if interest rates rise the market will nosedive but that would be contrary Federal Reserve guidance. You said it yourself that you bought at a low. That should mitigate some of the downside risk and frankly your profits don't sound all that great if you truly did buy at a low, which tells me there is likely more upside potential.

One would need to understand the rental market to really make a determination though. If rent prices are low and not expected to rise much then perhaps a case could be made for cashing out. This would especially be the case if property taxes, hoa fees, and assessments are high (if your monthly fees are not much less than renting then certainly it makes sense to rent).

I'm no expert on UAE but my understanding is that aside from an uptick in cases in recent months, UAE has done a fantastic job of handling covid-19 relative to other countries. If a country/state/municipality has shown competency in implementing common sense solutions that are business friendly then that's exactly the type of place that I'd want to invest my money long term.
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Old 05-10-2021, 07:30 AM   #5904
gregorio
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Re: Home ownership

Re THE blind bidding process in Ontario and BC


Re/Max Canada’s two top executives are calling for more transparency in the home bidding process, and say homebuyers should be allowed to know what their competition is offering.

The common realtor practice of blind bidding has angered buyers and is being blamed for pushing up prices in the country’s overheated real estate market. Some economists and a handful of realtors have said blind bidding needs to end.


https://www.theglobeandmail.com/busi...in-bidding-on/
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Old 05-10-2021, 09:13 AM   #5905
pwnsall
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Re: Home ownership

I'd guess it's pretty far down the list of reasons to end it. Also if very many realtors want it I'd be sus.
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Old 05-10-2021, 10:59 AM   #5906
Didace
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Re: Home ownership

Canada is weird.
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Old 05-10-2021, 11:27 AM   #5907
Tom Ames
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Re: Home ownership

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Originally Posted by Didace View Post
Canada is weird.
eh?
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Old 05-10-2021, 12:18 PM   #5908
marknfw
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Re: Home ownership

you betcha
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Old Yesterday, 04:51 AM   #5909
KemoSabeNada
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Re: Home ownership

Quote:
Originally Posted by Dream Crusher View Post
Your post is pretty much akin to asking us if we think the market will fall. Nobody knows. Certainly if interest rates rise the market will nosedive but that would be contrary Federal Reserve guidance. You said it yourself that you bought at a low. That should mitigate some of the downside risk and frankly your profits don't sound all that great if you truly did buy at a low, which tells me there is likely more upside potential.

One would need to understand the rental market to really make a determination though. If rent prices are low and not expected to rise much then perhaps a case could be made for cashing out. This would especially be the case if property taxes, hoa fees, and assessments are high (if your monthly fees are not much less than renting then certainly it makes sense to rent).

I'm no expert on UAE but my understanding is that aside from an uptick in cases in recent months, UAE has done a fantastic job of handling covid-19 relative to other countries. If a country/state/municipality has shown competency in implementing common sense solutions that are business friendly then that's exactly the type of place that I'd want to invest my money long term.
Regarding the UAE, you are absolutely right, they have really put on a clinic here in terms of handling this. We have been more or less open for business except a few weeks in March/April last year. There's a million different reasons for this, I won't spam this thread with why's.

My post was more of a thinking out loud thing. I'm no expert in bubbles, but what they call villas here (single family homes/detached houses) is where the increase is. Some apartment areas (Marina/Downtown) are seeing an uptick, but the 40% increase as reported is in the villa communities. The demand is far greater than the supply at the moment for houses.

There is no property tax in the UAE and my HOA is roughly 6k per year.

The rental market in the UAE is fairly complex, see spoiler below. Basically still low, but most rental contracts are renewed during the summer months, so let's see what happens. Mine will rent for 68-70k per year, enough to cover the mortgage, HOA and insurance, but not much more than that. On top of that I would have to freeze the rent for 3 years according to local law.

Spoiler:
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Old Yesterday, 07:26 PM   #5910
REDeYeS00
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Re: Home ownership

Quote:
Originally Posted by Didace View Post
Canada is weird.
but typically polite about being weird

sorry
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