Saturday, January 25, 2014

What a difference!

We plan to visit Dubai less in future so we decided to lease out our apartment in Dubai Marina.

What a difference between the way it's done here and there.

A neighbour recommended a real estate agent, who we contacted in mid-December. She brought a few people round, one family wanted it, the lease is signed, deal done.

Apart from the speed and efficiency, the financials are the big difference.

The owner pays nothing to the real estate agent. No fee, no advertising cost. Zero. Not one cent.

The tenant pays the agent's fees and lodges a security bond.

But best of's one cheque from the tenant for the full year's rent in advance. It's in our bank. Amazing.

The process also highlighted the difference between a high cost country like Australia and our cheaper competitors. That's something that's always in the news with offshoring of jobs and Aussie companies manufacturing overseas.

We had the apartment painted. That's a very large lounge, two big bedrooms, study, corridors. All with 4 metre ceilings, so there's a fair bit of wall to cover.

Six painters came in at 10am and left, job done, at 9pm. They removed all the picture hooks, filled holes and made good the walls, supplied all materials, cleaned up beautifully. Total cost for materials and sixty-six man-hours of labour was, at today's exchange rate, A$376.

There's an added factor too. The painters were all Indian, working in Dubai because they can earn very much more than they can back home.

No comments: