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is there any reason why i should not rent a property directly advertised by the owner from classified ads in somehwere like gulf news?

they seem a lot lower prices than through estate agents - just wondered if i was missing something obvious, and was doing the wrong thing.

also, what do rents include/not include? what are the extra things i'd have to pay for, and typically how much do they add up to?

i'm all questions. sorry

agents charge anything between 5-10% so that would account for some differential.

What is or not included is purely down to negotiation.

cheers arnie

so does the agent price inlcude his fee in the rent, or is it charged on top as an additional fee?

apart from utilities/internet etc, are there any other charges like council tax type thing in the uk?

trying to get a fix on my budget - my annual salary will be 400,000 AED from which i pay for everything, inc schooling for my two urchins.

i am budgeting annually 150k aed for housing, 45k for schools, 50k (loan repayment) on two cars. this will leave around 150k aed to live on (wfe & 2 kids & me). i get good bonuses on top, but need to be sure that we can live reasonably ok on the base income.

thoughts anyone??

red ketchup wrote:cheers arnie

so does the agent price inlcude his fee in the rent, or is it charged on top as an additional fee?

apart from utilities/internet etc, are there any other charges like council tax type thing in the uk?

trying to get a fix on my budget - my annual salary will be 400,000 AED from which i pay for everything, inc schooling for my two urchins.

i am budgeting annually 150k aed for housing, 45k for schools, 50k (loan repayment) on two cars. this will leave around 150k aed to live on (wfe & 2 kids & me). i get good bonuses on top, but need to be sure that we can live reasonably ok on the base income.

thoughts anyone??

Simply put, you are fine with what you have. No worries there

Enjoy Dubai!!!

The agent MUST make it clear if its included or charged extra, as the contract is between you and the owner.

You have the financials spot on, you wont go far wrong. I cant comment on the school fee's. Gabs would be one of the best here to advise on that.

Could i be so bold as too give you something to consider.

With a housing allowance of 145k, over 3 years that would be near on 1/2 million AED.

Although sale prices in Dubai have peaked (imho) it may be worth a consideration of buying a property using your allowance to service the mortgage. So rather than just renting you could use the allowance to your advantage and ultimately will return as opposed to losing to rent.


The only extras besides the utilities would be a maint charge to the developer ( check contract if this is included) and the new Property Tax ( 5% of the annual rental).

red ketchup wrote:so does the agent price inlcude his fee in the rent, or is it charged on top as an additional fee?

apart from utilities/internet etc, are there any other charges like council tax type thing in the uk?

Fee is on top of rent amount. So is the security deposit.

There are no taxes in Dubai at this point. Lets hope it stays this way

most of the places "free hold property" developments have an annual maintenance maintenance levy - this is normally excluded - whether the contract is through an agent or directly with the landlord. arnie may have some idea on the rates - i think they are a fixed rate per square foot.

if the arrangment is between you and the landlord directly - make sure the contract is on a proper tennancy agreement form and is registered with the dubai municipality to ensure there are no "miscommunications"

the 2% property tax as far as i'm aware only applies to re-sale of the property and not rental - again arnie is the property guru and could possibly straighten this out for me.

Generally the maint charge can be anywhere between 7-11 Dhs per sq ft. Some developers include the balcony area some do not.

Sorry a bit of confusion over the property tax, i didnt expalin very well, apologies. I was infact referring to the new levvy imposed by the government charged via DEWA. For rentals it is 5% per annum of the rental price and i think for owners it is 1% of 50% of the original purchase price.

The 2% charge mentioned by dxbsoul is the transfer charge by the developer, when resales take place.

Liban is correct re taxes, but the DEWA property charge is indeed a new form of taxation. However, it is almost certain that Dubai will introduce VAT by the end of 2007.

arniegang wrote:
VAT by the end of 2007.

really? but i'm allergic to tax!!!!!!!!

as far as you/anyone knows, will this be levied on all goods, inc housing rent and school fees? depending on what rate it is imposed at, and on what, that changes the financials.

you'll be telling me that they'll be building a snow dome in dubai next

arniegang wrote:
Liban is correct re taxes, but the DEWA property charge is indeed a new form of taxation. However, it is almost certain that Dubai will introduce VAT by the end of 2007.

There will certainly be a regionwide VAT system in place by the time the common currency comes into being in 2010. By all accounts, it appears it will be around the 5% mark. Not too shabby.

Also, it will not apply on essentials like for example milk and eggs

It is unclear how they will apply it RK. However in my humble opinion is already exists to some extent by stealth.

One small example is, has anyone noticed the hike in ciggie prices over the last 6 months. It seems odd, that after last years feeble attempt at banning smoking in public places like malls etc, the price of fags suddenly escalated and has continued.

The economy within Dubai for import /export is becoming uncompetative with other nations that charge VAT/Import duty. This is the sole reason for their considering charging VAT to the residents. Also there is pressure form other nations as dubai's GDP increases.

School fees.....hmmm.Some schools have debentures (nothing to do with teeth!! like a interest free loan you give to the school and get back when you leave BUT it is a big loan!!) and unless your company has debentures with that school it means you probably won't consider sending them there. Our kids go to a Brit curriculum school that has a good reputation and is non-profit. It is also probably one of the most reasonably priced schools- my two youngest have fees of just over 7000AED per term (years 1 and 4)-3 terms but my oldest in year 7 has fees of 14000AED per term Sure does jump up!! Places like the American school were way out of our league. Uniform for this school isn't too bad comparing with private schools at home but shoes they have for the kids are about 250-300 AED a pair -on par with home for us but still a shock when you first arrive. If you have to go to McGrudy's apply for a McGrudy's card first!! After spending 3000AED I found this out-they give vouchers for every x amount that you spend that you can use in their stores!1 (books, toys, gifts, school clothes, shoes etc).

There has been a hike also in food prices since we arrived here-so much so infact I should redo the cost of living allowance post I did some months back. Some fruit and veg seems to have doubled in price-this may be a seasonal thing, as we have not been here a year yet and may be it depends on the origin of the produce.

Gabs

The RPI in dubai is escallating and will continue i am affraid. It is the consequence of a fast growing economy.

School fees - I hope you have worked out from GAB's message that the 45K may just be enough if they are little - say KG and Grade 2 maybe. Again this may not cover the extras uniform, extra swim lessons, ballet, class photos, theme days etc....which really add up.

AFG wrote:School fees - I hope you have worked out from GAB's message that the 45K may just be enough if they are little - say KG and Grade 2 maybe. Again this may not cover the extras uniform, extra swim lessons, ballet, class photos, theme days etc....which really add up.

thanks, i'll re-check my numbers. i have a year 3 and a year 6.

AFG makes a good point.
Year 7 is high school and I think it is possibly year 6 at some schools. Speaking of extra-curricular activities I pay 80 -100 DH for specialist (violin etc)lessons for each half hour!! Yes, it occurs to me, I'd be better of tutoring than doing the current work I do!! Take into account transport ie buses and when you consider one child it's managable but multiples is just a huge amount. Another thing is extras like excursions-having been privately educating my kids at home these were factored into the school fees but here they are not, for us anyway, and the latest is for my eldest to see a play-100DH and oh, I forgot civies/plain clothes/mufti day with a 15dh donation -that just bothers me because charity doesn't begin by opening mummy's purse-how about a bake sale or something like that? All excursions have so far been between 10 and 20DH on average even if they have been free, just to cover bus costs. You can't really get away without extracurricular activities here-the school days are so short and on Wed they even finish earlier and the terms are also short and there is only three terms-kid's need the activities especially in the summer-it's not like they can play in the garden then (well, unless you are cruel!! ).
Bit of a rave on, but hope it helps!