Life in the UAE is getting more expensive. Let’s be honest, it has never been cheap – but the lure of tax-free living and year-round sunshine has historically been a huge pull for anyone thinking of moving here, especially from Europe.
I was one of those people eight years ago. Although some things, such as rent and the weekly grocery shop, were more expensive, others – such as petrol and, therefore, getting around – were much cheaper. Financially, I felt things balanced themselves out and, coupled with a luxurious lifestyle and beachside living, the UAE was far more attractive to me than the green grass of home.
Now, almost a decade later, the price of living is on the rise. The Government has deregulated the price of petrol and value-added tax is on the horizon. This is forcing us all to look to our pockets and start to count the pennies.
From a personal point of view, I am a living a different life to the one I was leading when I arrived. I’m now married and, with a growing family, I am looking to set down more permanent roots.
The big question my husband and I are now asking ourselves is “to buy or not to buy”? We are looking at the options we have to enter the housing market in Dubai.
When I moved here, I didn’t think twice about renting, even though it cost much more than I had been paying in the United Kingdom. When I got married, equally, I didn’t blink an eye at the rent bill – after all, we were sharing two incomes and we didn’t feel ready to consider such a huge financial commitment as buying a place to live. But now, with rents rising and all our other annual bills increasing year-on-year, we are seriously weighing up the possibility of spending all of our savings on a deposit for our first house. At least if we do that, we won’t be squandering a good proportion of our income on rent.
On paper it seems like a good idea. The price of a mortgage and maintenance costs on a modest two-bedroom apartment is actually the same, if not slightly less, than the rent that a landlord will charge for a similar place.
Plus, there is the added benefit of actually owning property, meaning we will be able to renovate as we wish and put our personal stamp on the place.
However, I’m sure I am not alone in feeling extremely nervous about this possible transition.
Both of us worry about the stability of the property market and fear the fact that if we plough all the nest-eggs we have into one basket, then we are taking a huge risk.
We have spent the past few months asking as many people as we can for their opinions and everyone seems to have a different point of view, which is sending us around in circles.
I don’t remember ever feeling this confused about what is the right decision to make. It takes me back to all the other big choices I have made in my life – such as emigrating to a foreign country or getting married. I didn’t falter over any of them, I just knew deep in my heart what was right.
I think that the difference this time is that I no longer only have myself to consider, but my new family, too. My resolve, therefore, is to face the doubts head-on and, hopefully, make the right decision.
aseaman@thenational.ae
