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Wael Abdul Rahman (author)'s picture
5 years 9 months ago
Wael Abdul Rahm... - Thank you for your comment. I will try to answer come of your questions: - around 6-7 years ago and earlier, people did not use to flip houses at all. However, recently, flipping houses has increased tremendously due to the illogical rise in prices of real estate. I personally know of people who own 12 apartments in Beirut (very much into flipping houses). I believe this is one more reason why prices will have to drop, as this is not real demand by people who want to live in these houses, but just specualtion - rental yields are very low, especially for big and expensive apartments. I would say, rental yields reach a maximum of 4 to 5%, but something around 2% is more accurate. And 2% is a very low rate (you are better off putting your money in the bank for 5% interest and capital guaranteed) - liquidity position is a case by case. Some buyers have the cash while others take loans. - In my opinion, the average price per sqm that makes sense and can be afforded should be around $2,000, if not less - New construction in Beirut is more skewed towards smaller apartments, which only makes sense, and which also proves that the prices are high and developers are looking for alternative ways to sell I hope this makes sense.