Brad Pitt and David Beckham Struck by Dubai Debt Crisis
Increasing credit crisis in Dubai has caused trouble everywhere and even Hollywood star Brad Pitt and star footballer David Beckham are not spared.
Pitt and Beckham have bought properties in Dubai but the serious dip in the cost of property has caused them financial damages. The plunge in the value of property is caused by increasing credit crisis in Dubai.
The crisis strengthens when the developer of manmade island and its parent company Dubai World yesterday appealed for suspension debt repayments.
According to the reports, to face this problem the Dubai Government has called accountants from Deloitte for suggestion on financial reforms, as Dubai’s economy is struggling with a debt of 80 billion USD.
Dubai Government’s main concern is that, the crisis may divert the mind of investors. Some of the well known celebrities who have decided to buy properties in Dubai are now reconsidering their decisions. So, it is a big problem for Dubai Government to keep investor’s confidence in Dubai’s economy.
Now Brad Pitt and David Beckham will think twice before buying any other property.
Related posts:
Their property values went down? Welcome to the fricken’ club!
Dubai is suffering from a catastrophic property slump. But more importantly, House Democrats won’t discuss the economic damage Forced Health Insurance Costs Will Cause the U.S. Real Estate Industry.
After the Health Care Bill passes, the annual costs of Forced Health Insurance will disqualify millions of home buyer mortgage applicants, needed to support selling prices and home values; it is foreseeable Home buyers will increasingly qualify for smaller mortgages. For many, health insurance costs may equal their paid Income Tax increasing the risks of mortgage default. Homeowners who can’t afford health insurance or opt-out penalties, IRS can file liens destroying their credit; families deemed not poor by Government for subsidized insurance, may have to sell their homes or borrow money to buy health insurance or pay Opt-Out penalties with money needed for medical expenses.
Falling home prices and values continue to lower property taxes, forcing local governments to layoff workers and ask federal agencies for money; increasing federal deficits. Historically dropping home values cause unemployment in real estate industries, e.g. construction and manufacturing.