Thursday, 31 October 2013

Regulations must end property ‘boom and bust’ | GulfNews.com

Regulations must end property ‘boom and bust’ | GulfNews.com:

"Boom and bust economic cycles are a threat to the sustainable development of a country. The volatility makes it difficult for companies and consumers to budget and they become reluctant to spend and invest, which hinders growth. This is why the UAE Central Bank and the other relevant monetary and fiscal authorities are wary of asset bubbles, when prices increase sharply on the back of speculative demand and then collapse, often leaving people without savings or investments for later life.
To help prevent this, the Central Bank has increased the deposit required to purchase property with mortgage finance. From next month, purchasers will be required to deposit a minimum of between 20 and 25 per cent of the value of the property to secure finance. The Bank has also capped the amount that can be borrowed at between seven and eight times the borrower’s annual income."

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