Archive for September, 2013

The race is on

28/09/2013

Thanks to the recent ‘fee’ changes (see last post) we’ve been galvanising the troops to get our mortgage processed this week.

If it doesn’t happen, either we or the sellers will have to cough up a large sum. The sellers are supposed to split the fee 50/50, but… We can manage it – but if for some reason we hadn’t been able to and the sellers refused to pay, we could have ended up in nasty situation, with the worst outcome meaning pulling out of the sale, which could mean the sellers demanding their rights as per the MoU, which would take a third of our deposit from us and leave us with no new home and a massive hole in our finances. I don’t think it would have come to that, but I’m sure some people will find themselves in an awful situation.

It looks like we can get all the paperwork together so that things can go through on Wednesday or Thursday. However, this all hangs on Zurich Life Insurance processing in a day what they claim usually takes three and which friends have seen drag out over two weeks.

Fingers crossed everyone can work together on this.

This is all happening just at the end of work’s financial quarter. I am losing track of the discounts, letters of credit, MoUs, delivery dates, updates, corrections and other things whirling around!

Wish us luck.

Land Department fee rage

27/09/2013

This is extremely frustrating.

The Land Department can charge what they want – it’s their country and they manage the market.

However, introducing the new fee with little more than a working week’s notice is not the right step to take, in my opinion. It leaves people who have already signed MoUs in a tight spot, as either buyer or seller is going to have to stump up a sizeable chunk of cash at very short notice or back out and pay even more whilst losing the property they have found – it is simply penalising the market that Dubai surely wants to have, namely people buying properties to live in, as opposed to speculative investors.

Regardless of whether the fees are higher or lower than other countries, it will cause a great deal of unnecessary short term pain and confusion due to the unexpected announcement and immediate implementation. Three months’ notice or , at the very least, an exemption for people who have signed MoUs should have been implemented.

This will not affect the practice of ‘flipping’ in the slightest, as you don’t pay the tax when flipping a property on to someone else.

The things which affect Dubai’s property market remain unchanged, therefore – uncertainty due to the expectation that random changes will be announced at the drop of a hat, off plan flipping can continue unabated and rents will continue to rise as owning a home for the ‘average’ person becomes even harder.

It also frustrates me when the only talk is of ‘investors’ and nothing about ‘homeowners’. The man with a suitcase of cash in town for a week is fine, people committed to Dubai are penalised. I wonder which investors were consulted during this process. Were any boring old homeowners consulted? What was the response from the investors? ‘Yes please, feel free to increase the costs, that’s a great idea, thanks’?

If a fee is to be increased as a way to generate revenue, that’s up to the Land Department. It seems a shame to dress a revenue raising method up as some kind of fiscal measure to manage the market in a proactive way. It’s astonishing to implement changes that affect such an important market in such a short timeframe.

As you may have guessed by now, we are looking at buying a new property. Unless we manage to get the endless reams of paperwork finished in four working days, as opposed to the 21 or so we had budgeted for, we are faced with paying thousands of dollars more – not just the new fee, but an extra month’s mortgage, service fees, etc. The fee is supposed to be split between buyer and seller. Even if our seller agrees to pay, we’re faced with unwanted negotiations and the seller is also obliged to stump up that chunk of unbudgeted cash. Do they even have it available? We’ll find out if we miss the deadline.

It’s also going to be chaos as all the banks, life insurers, developers and the Land Department itself will be inundated this week with people screaming for paperwork that usually (and inexplicably) takes days to complete to be sorted in a much shorter timeframe. I will be queuing from the early hours, much like someone waiting for a new iPhone, outside the relevant office on Weds morning. I bet I won’t be the only one.

Not happy.

On a positive note, my medical for the obligatory mortgage life insurance was absolutely fine. No issues at all – not that I expected any, but I am always paranoid. I did have to have my blood pressure checked twice – it was high the first time, due to my always being nervous at the doctor, but fine with the second test. Needless to say I am also not HIV+. If I guess right, I have been tested eight or nine times over the past eleven years for residence visas, Russian visas, insurance policies and the like. It’s getting a bit tiresome!

Bureaucracy

27/09/2013

Thank goodness Brits abroad don’t have to go through this.

I wonder if the revenue it generates is worth the hassle. No wonder there are relatively few Americans working in the Gulf.

Way ay behind the wheel like

03/09/2013

I’d forgotten that AC/DC’s Brian Johnson was a geordie.

Evidence here.

The fact that he used to sing in a band called Geordie was probably a clue. I love the fact that he still sounds the same after years of living in the US.

My mother’s family came from Newcastle. She was born in New Malden but was evacuated during the war with her sister to stay with family there. Did her mother go with her? I’m not sure. When someone’s gone you realise how much you’d like to ask them.

She told me a few years ago that she had had elocution lessons at around the age of nine to help her speak ‘proper’ English! In 1950s London I suppose a Newcastle accent wasn’t really something you wanted your children to keep.

As I’ve mentioned here before, I’ve been teased throughout my life for ‘speaking posh’, but there’s nothing better than speaking what is actually standard English for most of the non-English speaking world, when it comes to people understanding you, from Yemeni IT consultants to Nigerian drivers. It has proven problematic in the US though – people always assume I am Australian, which makes no sense to me at all.