The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Falconer on October 06, 2013, 05:56:29 AM
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Hallo everyone,
I am a german (26yo) expat living in the UAE and just at the beginning of my career to IR and FI. I would like to invest a minimum of 50% of my salary and so am looking at what to do with it. I am considering buying an apartment, now the lucky part is that it looks like instead of getting the money from a bank I can get it from my parents who due to my granny passing away last year have a lot of cash sitting around. rent per year is about 10% of the buying price in the area I would like to stay.
Now when it comes to paying my parents back should I do that asap, give them my full 50% every year?
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1) How confident are you that you'll be in Abu Dhabi for the long haul?
2) At what interest rate will your parents lend you money for a purchase?
3) What are the local considerations? Are there rules about foreign ownership of local property? Are there restrictions? Benefits (fast track to citizenship for instance)? What's the political situation like? Is it possible that the region could become destabilized or that foreign owners could be adversely affected? Is there an active mortgage market or do transaction take place in cash (rental yields are usually higher in countries without an active mortgage market, but properties tend to go south faster under conditions of economic turbulence).