Tag Archives: real estate
IMF no longer concerned about property price bubble in Dubai
The International Monetary Fund (IMF) has announced that it is no longer concerned about a property price bubble in Dubai. According to Masood Ahmed, head of the IMF's Middle East and Central Asia Department, price growth on the emirate has moderated considerably. He said that Dubai authorities had taken steps to limit speculative buying and along with mortgage curbs the market is now much less likely to see a spike in real estate values. However, he said there were still areas that needed to be watched, and that real estate projects needed to be sequenced and carefully managed to avoid encouraging excessive risk taking by government related enterprises. The IMF had previously warned that rapid rises in Dubai real estate prices, which earlier this year were in some cases a third higher than they were 12 months previously, could lead to another bubble and then a crash in the UAE emirate. A report by property consultants JLL last month found residential rents and sales prices rose 2% and 1% respectively in the third quarter compared to the previous quarter, slower than the 3% and 6% recorded in the second quarter of the year. Between June and August 2014, prices in some of Dubai's most popular areas fell by almost 4% according to a Mashreq Bank report. Jumeirah Park saw prices fall by 3.5% the largest of the declines, while Greens saw a decline of 3.1%, the Springs and Meadows dropped 3.4%, Arabian Ranches 3.3%, Jumeirah Village 2.6% and JLT 0.9%. Dubai Marina saw the smallest drop with prices declining just 0.2%. Meanwhile, Jumeirah Beach Residence (JBR) prices continued to rise. Between June and August, prices rose by 3.2%, bringing the overall annual increase to 15.2%. Mohamed Alabbar, chairman of Dubai's biggest real estate developer Emaar Properties, said he welcomed the slowdown in the emirate's property market and vowed to keep supplying new homes to help hold prices at 'a reasonable level'. 'In 2013, things went crazy because supply was limited. For me as a long term developer, this spike scares me, so I'm glad people are saying the market is cooling down. I think that is healthy,' he said at the launch of the first phase of a new high end residential development called Dubai Creek Harbour, a joint project between Emaar and Dubai Holding, the personal investment vehicle of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum. Continue reading
Research shows sneaky fees and charges make it hard to get best mortgage deal
UK borrowers could be paying over the odds on their mortgages and with sneaky fees and charges making it harder for people to find the best deal, it is claimed. Research from consumer champion Which? reveals that there are more than 40 fees and charges across the market, including set up fees, arrears fees and final repayment fees. Providers using different names for the same or similar fees. For example, a booking fee can also be called a reservation or application fee. There is also duplication with some lenders charging more than one set up fee. The research reveals increases to the cost of some fees. The average arrangement fees have almost doubled in the last five years, from £878 in 2009 to £1,588 in 2014 and there is a wide variation between lenders in the cost of the same fees, suggesting that fees don't always reflect the true cost the lender incurs. Which? also highlights a lack of clarity which makes it difficult for borrowers to tell if the fees are avoidable. The research shows that consumers borrowing £100,000 over two years could save as much as £1,503 if they took into account the set up fees rather than choosing the product with the lowest interest rate. This vast array of confusing fees and charges, which aren't always reflected in the standard APR (Annual Percentage Rate of Charge), means the total cost is not clear to borrowers leaving them unable to easily find the best deal. The research found just 3% of people could correctly rank the cost of five two year fixed rate mortgage deals when displayed using typical information, including APR. This rose to 36% when presenting the total cost of the mortgages over 24 months. With mortgage repayments the biggest monthly expense for most homeowners, and the prospect of future interest rate rises adding to this, Which? is calling on the Chancellor George Osborne to use his Autumn Statement to make it easier for people to find the best mortgage deal, working with the FCA, industry and consumer groups. ‘Home owners could be paying over the odds for their mortgage because of the complex range of fees and charges that prevent them from finding the best deal,’ said Which? executive director, Richard Lloyd. ‘The Chancellor must act now to stop sneaky fees and charges and end mortgage confusion for consumers. The government and the regulator should also explore better ways of presenting the total cost of mortgages,’ he added. Suggestions for change include making mortgage price comparison easier. Which? says given the limitations with APR, the government and the Financial Conduct Authority should explore other ways to present the total cost of a mortgage. It also suggests making the full cost of a mortgages clearer. For example, all compulsory fees payable throughout the deal period should be expressed as a total of fees and included in the advertised costs. It should also be clear which fees payable over the life of the mortgage are compulsory and which are… Continue reading
UK’s new property redress scheme exceeds membership expectations
The Association of Residential Letting Agents has confirmed that the UK’s new Property Redress Scheme membership meets its membership requirements, as members join daily. The announcement follows compulsory legislation which means that since the beginning of October letting agents must be part of a government authorised redress scheme in order to operate. The redress scheme means that Tenants have a straightforward route to take action should they get a poor deal, while avoiding excessive red tape. ARLA membership guidelines state that all ARLA Licenced agents, or those agents wishing to become ARLA Licensed, must belong to an independent redress scheme in order to be a member. The PRS is one of three authorised redress schemes under the Department for Communities and Local Government, whose role it is to provide fair and reasonable resolutions to disputes between members of the public and property agents. ‘We’re very pleased to have approved the PRS to cover our consumer redress requirements for ARLA Licensed status. We have already received enquiries regarding membership from PRS members,’ said ARLA managing director David Cox. ‘ARLA Licenced agents are provided with the support and advice needed to help them carry out best practice. ARLA agents benefit from client money protection and the assistance that a trade body can offer,’ he added. Sean Hooker, head of redress for the PRS, welcomed the announcement and revealed that the PRS has now seen over 2,000 members sign up to the scheme with new members joining daily. He believes that the decision to do things differently has been a huge supporting factor in the scheme’s success so far. ‘We offer two different membership options so our scheme is both affordable and flexible whilst covering the needs of different types of Agents,’ he explained. ‘Giving Agents the opportunity to decide which model is best suited to them is something that sets us apart from the other two schemes and has contributed greatly to us reaching the 2,000 member target in such a short space of time,’ he added. Tim Frome, managing director of the PRS, said that this surge in membership has really exceeded expectations. ‘Estimates suggested there were 3,000 to 4,000 letting agents who would need to join a redress scheme. To achieve a membership of 2,000 in such a short time suggests that the majority of these agents have chosen to join the PRS or the number of prospective members was underestimated,’ he pointed out. Of the 2,000 members, 78 % of these have selected the Entry Model which is a pay as you go structure where the agent pays a smaller application fee of £95 plus VAT and then pays per complaint should the PRS receive it. The remaining members have opted for an all-inclusive Enhanced model that covers both their application and their complaints (subject to a fair usage policy) and costs £199 plus VAT. So far, over 97% of members have joined as a property agent with nearly 3% joining the scheme on… Continue reading
