Job Discussion Forums

[ChrisV]

Someone (can't remember who) mentioned in another thread a couple who had used their accomodation allowance to pay the mortgage installments for a flat in Dubai. Would most employers be happy with this?

Thanks in advance,

Chris

[Tuttifruitti]

It depends on who you work for. The private schools will often give cash, but in general, government educational institutions don't. HCT pay for your accommodation, they will not give you the cash instead. I think Zayed Uni is the same, though younggeorge would know more about this.

[veiledsentiments]

From what I have seen of the prices of the limited real estate on sale to foreigners, you better have a spouse who makes big bucks... not two teachers... ... and how is the commute off these communities stuck out on islands in the Gulf?

But I doubt the employers have the slightest interest in what you do with your housing allowance.

Got any updates YG?

VS

[caliph]

A couple of years ago, when "freehold" became available in Dubai, some HCT teachers wanted to apply their housing allowance to purchase flats, the HCT response was a resounding NO.

HCT wasn't in the business of helping teachers accumulate equity, and probably more to the point, they weren't about to bypass the relationships with greedy local landlords by denying them the obscene rents they are charging.

Just keeping the money all in the "family", not letting any of it escape.

[veiledsentiments]

Whether buying or renting, the cash is still flowing to same small group of Sheikhs... ... after all it is the same people who rent flats, run construction companies to build flats to rent or sell, provide the bank financing... all one big, rather incestuous family...

BTW... is it still only Dubai that allows real estate ownership by foreigners?

VS

[Afra]

Property is bought on leasehold for 99 years, and the residency visa is through the developer as sponsor. Ajman, UAQ and RAK all have similar schemes. There are many properties in Dubai being offered at 3% downpayment, 97% financed so presumably, they aren't selling.

[veiledsentiments]

Of course the prices that make it to the internet tend to be the most expensive, but I thought that Dubai properties were ridiculously overpriced.

I would have little interest in leasehold myself... but perhaps because I don't really understand it and how it affects resale value. I can think of at least a dozen countries that I think would be better real estate investment opportunities.

VS

[like2answer]

Here is a nice story - two good friends, each married with families, wanted to get into the freehold market in Dubai about 5 years ago. Family A bought a place and Family B bought a place. Each put their place up for let/rent with a realtor. Family A "rented" Family B's place and Family B rented Family A's place. The college/university where they work never heard about it and I believe they are still doing that to this day.

I thought that was pretty interesting.

[veiledsentiments]

I don't quite see what the benefit of that would be... it rather sounds like an expat urban myth.

VS

[like2answer]

The benefit is that once you want to leave, you sell your flat or house for more than you paid for it and the college/university has paid about 70,000 dirhams a year for it. It's free money. So far they lived in their places for 5 years... that's 350,000 dirhams extra. Nice.

[ChrisV]

[ChrisV]

[Spin duck]

Then there's the question as to why employers didn't/don't invest in the real estate market themselves by buying properties to put staff up in, instead of paying out larger and larger accommodation allowances directly to individual owners each year.

[veiledsentiments]

[ChrisV]