On March 15, the Dubai government announced that it will allow locals to develop commercial and industrial land gifted to them by the nation’s ruler, Sheik Mohammed bin Rashid Maktoum, in exchange for a fee of 50 percent of the land’s assessed value.
Previously, these lands had been tightly controlled by the government, and their uses were closely monitored and restricted. Now, however, in light of the “estimated 50 percent drop in the value of property in Dubai over the past two years,” (as reported by The Wall Street Journal) the government is taking a new approach: encouraging small businesses.
The government of Dubai hopes that the fees paid (about 25 percent of the estimated value of the properties less than two years ago) will help Dubai raise billions in additional revenue. At the same time, these properties will now be part of personally developed and managed projects handled by the owners of the property, which the government hopes will lead to more development because the investors will be more likely to develop projects that they directly own.
I think this is an interesting idea. After all, the idea of paying some sort of fee for permission and then being permitted to just “do deals” and get them done sounds very appealing. Maybe we should institute a form of this program here: for example, instead of having to season a home, you can flip it right away if you pay a small percentage of the purchase price for skipping the “seasoning” process. Of course, this assumes that seasoning is a reasonable request and requirement, which I’m not inclined to think it is, but imagine the possibilities in terms of liberating real estate investors and paying down our massive national debts…
At the very least, it’s interesting to think about. Sadly, I expect that’s all that it will ever come to. This program is way too “proactive” for our current governing body to be interested and I imagine that the regulations that would come with it could end up stifling real estate investors even further. Furthermore, it seems unlikely that real estate investors would welcome the idea of paying for something that we should be allowed to do anyway. It’s just an interesting notion to think about, and I welcome your thoughts in the comment area below.
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We should watch how they do! Soon when King Obama has the same system in place here, he may decide to let us common folk in on the deals too.
Seasoning? The Govt just completely waived their seasoning requirement on FHA loans, specifically because they know that it will help stabilize the market. We in the short sale investor community are flipping deals immediately…WITHOUT paying any kind of fee to any govt entity. So what’s so intriguing about this Dubai thing?
Fair point. Seasoning is simply an example that many people understand. — Bryan Ellis
It seems to me that there’s just a lot of whining going on in this country. The measures this govt has taken have allowed us to avoid a complete financial meltdown on the scale of the Great Depression, yet we’re complaining that we’re still in debt after 8 years of spending like drunken sailors.
This is the hangover period. Take two aspirin and call Obama in the morning. But don’t blame your hangover on him.
I’m not the author of this article, and I won’t speak for her. But if you’re still drinking the Obama Kool-Aid, you have more serious problems than can be addressed here. Do yo understand that Obama’s EXISTING spending – ignoring that to come under his healthcare takeover – has put us into such debt that the Moody’s rating service expects our credit rating to be dropped and will likely result in financial policies that challenges social cohesion? Don’t blame the hangover on Obama? I blame him for forcing a spiked drink on all of us that few Americans ever wanted. This guy is a lunatic narcissist far beyond what any of us have ever had to suffer through. Do you really think this guy cares about anybody but himself? I’m serious: Do you REALLY think he gives a rat’s ass about you or anyone around you? Obama doesn’t care enough about his own brother to rescue him from squalor. Just because you supported his election doesn’t mean you have to believe the lies now. This is why his support has fallen faster than ANY president in modern history – INCLUDING George W. Bush. — Bryan Ellis
STICK TO REAL ESTATE, folks!!
Political diatribes never settle anything!!! So there!!
Anyone can get “facts” to back up just about any proposition!!
Moody’s? Aren’t they part of the cabal that gave over-hyped “AAA” ratings to MBS’s? Have they gone back to being credible?? If yes., please let me know when that happened.
If I remember correctly, many investors took a bath, thanks to Moody’s, S&P, Fitch, et al.
And I still think the “rescue” of AIG was a correct move in the economic maelstrom of 2008. Of course, they need to pay back every dime of my/yours/our money!!!
I think I’m almost “diatribing”, so let’s all get back to REAL ESTATE– even though it might not be as cathartic as lobbing shucked peanut shells at Obama.
Bryan,
There is a huge, HUGE difference between good debt and bad debt.
Bad debt is borrowing a trillion dollars from our grandchildren to dump into the desert on a war that killed thousands upon thousands of innocent women and children.
Good debt is investing in infrastructure and creating jobs AT HOME that will inject money into OUR economy.
Yes, that’s good theory. Government spending is the prescription to every problem if you’re a liberal – whether socialist or communist. I would concede your point, if there was any evidence that the massive expenditures of Obama’s administration THUS FAR had done anything to help the employment situation (except for in government jobs), but there’s no such evidence. This theory that government “creates jobs” reflects what’s clearly a fundamental misunderstanding of economics on your part. But maybe you’re extremely well informed and I’m not. So please, do tell: Where are these wonderful infrastructure projects that you’re referring to? Do you know a single person who has gotten a job as a result of any government spending? Or are you, like Obama, relying on made up figures (such as number of jobs “saved”) to bolster your position – a position which, by the way, is not proving out right now, and never has throughout history?! Bryan Ellis
One would think a self-proclaimed “investor” would know the difference.
Healthcare? You mean like the kind of healthcare Congress has? You mean the kind of healthcare every Iraqi citizen has, thanks to U.S. taxpayers?
Do you think this supports you? They shouldn’t have it either. Focus on the law and the facts. There’s no Constitutional provision for health insurance. It’s just that simple. Check it out sometime. You’ll be surprised. Bryan Ellis
If it wasnt for the agents of disinformation out there, (you included) people might actually know the TRUTH about the President’s healthcare plan. It will introduce COMPETITION into the picture which will give everyone lower costs. It will also cover people who can’t afford it, which we are paying for now ANYWAY when they go the emergency room after becoming severely ill. It is always cheaper to pay for preventative care than to pay for someone who is very sick.
Competition? Maybe you should read an economics book. Competition is what happens when there’s a level playing field, and everybody gets a shot. In Obama’s misguided world, only the government gets to decide what is acceptable in a health insurance plan, and only the government is free to operate at a deficit to make their vision happen. The result? No more private insurance companies. I’m guessing this is too difficult for you to really understand, but think about it for a while, and maybe you’ll get it. A majority of the U.S. population understands it already. Bryan Ellis
It seems every other civilized nation in the world except for ours understands that simple concept.
We spend more on healthcare than any country in the world yet our health care system is crap (rated about 37 in the world) contrary to what your only source of ‘news’ is telling you. (I’ll refrain from using the F word there) This is all thanks to your support of the insurance companies and what they have done to our system.
This is intellectually infantile. Before I destroy your arguments publicly, would you like to go ahead and try to support your claim that our system is “crap”? This will be fun. Bryan Ellis
So let’s drop the paranoia, pessimism and whiny negativity and get behind OUR country, and stop defending the stranglehold the insurance companies have on our healthcare system.
(I’m sure you won’t post this but I just wanted you to hear an opposing sensible view rather than the monolithic view youre getting from the so-called “liberal” media)
Why wouldn’t I post it? Your ramblings are very illustrative, though not of the points you believe you are making. Bryan Ellis
Good for you Bryan!
To people that think spending means jobs, if that were the case then we would be swimming in jobs. To people that think we really have a health care system at Number 37 in the world. When was the last time you went to one of those wonderful health care systems?
Are health care system is numerically skewed downward because we have a higher fatality rate because we will do more in this country than any other in the world to attempt saving a life.
Get real, if you think the current Moron in Chief is anything more than a Maxist then you are not looking at any facts! If you think Obama care is going to be the first government program to work well and come in under budget, then I am sure you believe in the tooth fairy!
AMTRACK is screwed up, every light rail system in the country is a long skinny hole we the people pour money into for basically no benefit other than creating mobile gang homes that bums pee in instead of a bathroom, kind of a bathroom on wheels for them.
The Post Office is loosing money hand over fist and it comes as a surprise to who? The shareholders and bond holders were totally screwed when GM and Chrysler were taken over by Obama and the Unions. And they are still making crappy cars!
Fannie Mae-Freddie Mac are giant holes with Trillions poured in and needing trillions more and are failing. I can go on, Medicare, Medicaid, Social Security, the list just keeps getting bigger.
NOT ONE WINNER AMOUNG THEM!!
If you are too stupid as an investor to see what is happening then maybe you just have a system where you can get in and screw a few people and get out before it all goes to hell. Kind of like what Obama and his idiot controllers are doing to this country.
If you want to whine about what Bush spent then maybe you should look at the numbers and see when the big spending took place, that is right after the Dems took over congress! So if Bush spent too much then Obama creating an even larger deficit if great?!
Kind of like if your wife spends more than your paycheck then you should go our and get a hooker, get drunk and spend even more than she did!!?
It takes a village to raise a child I have heard, I guess it takes a moron to run the country into the ground. No damn village raised me or my children and NO Marxist should be running our country. There is a reason the Soviets failed, Cuba is failing and China if more capitalist than the we are right now.
As for political diatribes if we do not save the country we will have nothing to invest in soon.
The bailouts have not done anything except spend a lot of money where it should not have been spent and has set up a horrible situation for America and the rest of the world.
There is a reason we have bankruptcy laws in this country!
This has been fun. We all need a cathartic experience every now and again. — Bryan Ellis
I actually think this is a pretty good idea. The banks are seemingly doing everything possible to inhibit the very people who have the best chance of turning this economic situation around…the investors. The seasoning issues are ridiculous and prohibit many investors from making a difference to the distressed home owners, the negative assets on the bank’s ledger, and the investors who stimulate the economy by employing people and buying materials etc. that are needed for rehabs. I think as radical as it sounds if this would get the ball moving faster and release the “red tape” and strangle hold banks have on investors, it should be investigated.
Thanks for sharing this article.
Jim D.