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Is this a good time to invest your LBPs in Real estate?

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  • Thawra # Furoshima

    Thawra # Furoshima

    Well-Known Member
    Real estate prices are rising
    After the meltdown
    If good governance emerges
    With oil
    Real estate will greatly increase in the medium future
     
    NMA

    NMA

    Well-Known Member
    I hear prices are going up...crazy!! shou hal balad ma 7ada fehim shi anymore.
     
    V

    Viral

    Active Member
    I hear prices are going up...crazy!! shou hal balad ma 7ada fehim shi anymore.
    That is expected because the market value is based on demand and supply and as you can tell many are rushing to buy real-estate they don’t need to outsmart the system but in reality they are getting screw like those who are buying dollars they don’t need at an inflated price. Buying real-estate now is basically freezing your money for ever and deflating it at the same time without even gaining the minimum interest which is worse than the banks temporary capital control that will inevitably loosen up and if it doesn’t, everything will crash including real-estate because no one will have money to buy. People’s priority will be buying food.

    I would consider buying a property now only to live in it but definitely not as an investment or to protect the money I have in the bank.

    No matter what happens in the near future I’m certain the real-estate will crash because of all those who are making the mistake of buying today at inflated prices who will eventually find out they are cashless and they will be forced to sell at lower prices for cash they need when the banking system stabilizes.

    The central bank must stabilize the LL at any cost and make sure no depositor will lose more than a fraction of the interest they gained over the years. They are suggesting a 10% haircut which is a year interest. So no big deal… Any thing excessive will cause the whole country to go bankrupt because you’ll never see expatriates send money to a Lebanese bank again which again, will cause the real estate to crash.

    So the smart thing to do is to make Riad Salameh fix it before you kill him so we don’t all die together. Those burning banks are simply stupid or don’t have anything in them to lose. At this point, 7irak is causing more harm than good and they have no clue what they are doing. It’s easy to destroy but when it comes to rebuilding, they have no clue.
     
    Manifesto

    Manifesto

    Legendary Member
    Orange Room Supporter
    Today's rate was 2,400. I exchanged $5,000 to LBP and put them in the safe. Hoping that once the crisis is over, (likely in 6 months) and the rate goes back to normal, I can exchange them back to USD.

    That's an easy $3,000 gain.

    @shadow1
     
    shadow1

    shadow1

    Legendary Member
    Orange Room Supporter
    Today's rate was 2,400. I exchanged $5,000 to LBP and put them in the safe. Hoping that once the crisis is over, (likely in 6 months) and the rate goes back to normal, I can exchange them back to USD.

    That's an easy $3,000 gain.

    @shadow1
    love people that dance on the edge of the precipice. I couldve given you 2401. In six month time I am betting you could buy the dollar upward of 10000LL.
    You are either playing a game of brinkmanship with your money or really having a peasant's understanding of financial matters.
    The way I see things and you might be right in your transaction is that there will be one last opportunity, one last and final, and it will be very short lived, perhaps days no more, for people to exchange their LL to dollars. If you miss that opportunity then you deserve to be poor and you have nothing to look forward to but the after-life. Not even love as this often comes with a high price tag but miserable days of impovrished loneliness singing Oum Kulthoum song "if only I had been wise instead of being cute."
     
    Resign

    Resign

    Well-Known Member
    Orange Room Supporter
    Today's rate was 2,400. I exchanged $5,000 to LBP and put them in the safe. Hoping that once the crisis is over, (likely in 6 months) and the rate goes back to normal, I can exchange them back to USD.

    That's an easy $3,000 gain.

    @shadow1
    Not the wisest thing to do.
     
    Manifesto

    Manifesto

    Legendary Member
    Orange Room Supporter
    [
    Not the wisest thing to do.
    Why not? You think the current crisis is permanent?
    The official USD rate has been around 1,500 LBP for the past 15 years.

    If you've got some dollars aside, it's a good time to be in Lebanon. Your dollar will go further.

    The other day I paid $240 to buy shoes worth $400. I simply exchanged $240 to LBP.
     
    Resign

    Resign

    Well-Known Member
    Orange Room Supporter
    [

    Why not? You think the current crisis is permanent?
    The official USD rate has been around 1,500 LBP for the past 15 years.

    If you've got some dollars aside, it's a good time to be in Lebanon. Your dollar will go further.

    The other day I paid $240 to buy shoes worth $400. I simply exchanged $240 to LBP.
    That’s because the shop is stupid for converting as per Central bank fake rate

    I think you’re being too optimistic expecting a recovery within 6 months
    Such crisis can last for years
    There is no guarantee that the $ will go back to 1507

    remember in the 80s the dollar was at 20 Liras ?
    Before it went up to 3000 then back down to 1500

    aftter the crisis we might end up with a 120,000 per dollar
     
    NMA

    NMA

    Well-Known Member
    [

    Why not? You think the current crisis is permanent?
    The official USD rate has been around 1,500 LBP for the past 15 years.

    If you've got some dollars aside, it's a good time to be in Lebanon. Your dollar will go further.

    The other day I paid $240 to buy shoes worth $400. I simply exchanged $240 to LBP.
    Try MEA... thats dirt cheap tickets all the time.
     
    opium

    opium

    Well-Known Member
    Today's rate was 2,400. I exchanged $5,000 to LBP and put them in the safe. Hoping that once the crisis is over, (likely in 6 months) and the rate goes back to normal, I can exchange them back to USD.

    That's an easy $3,000 gain.

    @shadow1
    Just exchange the sum you need for daily expenses on weekly basis. Anything more is a suicide.
     
    shadow1

    shadow1

    Legendary Member
    Orange Room Supporter
    [

    Why not? You think the current crisis is permanent?
    The official USD rate has been around 1,500 LBP for the past 15 years.

    If you've got some dollars aside, it's a good time to be in Lebanon. Your dollar will go further.

    The other day I paid $240 to buy shoes worth $400. I simply exchanged $240 to LBP.
    what you are doing is looking through a rear view mirror imagining that the real value of the LL is what has been set by BDL. That was an artifical value responsible for a large part for the catastrophe we are in today. In order to Fix the exchange rate, Salameh was in constant need to bring in USD to help the trade deficit by propping up the account deficit. He ran a ponzi scheme of the most insidious kind. He lured the expats to send in the money as means of tax evasion for them and a way to finance trade and current acocunt deficits and prop up the liras. Something has now changed, These expats are well and truly burnt now. I think it would be highly unlikely anyone would dare send in more money unless and until the same scheme can be restarted somewhere down the line in ten or twenty years when all those burnt now have died and a new generation of tax evaders takes its place.

    Many things have changed now. First and foremost the country is ungovernable. Corruption is just about the only thing Leb politicians would agree on. Europeans have given up on Lebanon and are not putting good money after bad. The arabs have now finally waken up to the idea that Lebanon is an Iranian colony and they too will withhold their money. You need at least 30 Billion usd a year to maintain the same conditions you had prior to oct19. I can think of ways to provide 10 to 15 Billion at best. The rest has to come from somewhere that no longer exists.

    if I told you now the dollar could reach a million LL ( 10M or even a 100M) is not as far fetched as you might think. The figures support it. in order to give a more correct figure you need to bring is some sustainable balance in trade and currenct accounts. In the near future That is out of reach for a country where every single institution is corrupt to the core. No one gives a **** about the country. Not even its own politicians for god sake.

    Before the govt ( assuming there was ever gonna be a decent one) bring in a budget surplus, the hole will get deeper and deeper. Right now what you should be worried about is not making a good return on your money but guaranteeing your saftey, your physical safety. Very tough times lie ahead. Stop thinking things will go back to the way they were. Banks are illiquid, the central bank has no money of its own and the country is ruled by dinosaurs.

    I'd like to ask you a question I would very much appreciate if you answer honestly. Now that you have converted 5000USD at a rate you think is good, do you feel better having that money now in LL or if you had kept it in USD? Be honest.

    PS once upon the time and while the country had no debt to speak of its currency depreciated by 100,000 percent. at the same rate of depreciation the currency could reach one and a half million LL to the dollar.
     
    Last edited:
    NAFAR

    NAFAR

    Legendary Member
    I have frozen USD account in Leb Bank up to October 2020.
    I am still gettting the interest and able to spend it/cash it from abroad using the debit card.
    Any ideas?
    I tried to buy property but the bank refused to even give me a check since the account is frozen; is this legal?
     
    shadow1

    shadow1

    Legendary Member
    Orange Room Supporter
    I have frozen USD account in Leb Bank up to October 2020.
    I am still gettting the interest and able to spend it/cash it from abroad using the debit card.
    Any ideas?
    I tried to buy property but the bank refused to even give me a check since the account is frozen; is this legal?
    From a legal standpoint yes it is legal for the bank not to allow you to break the term deposits. However in Lebanon it's not about the law it's about whrther the bank manager would allow you to break it or not.
    the fact that you can still use your debit card outside the country is good. Beware though of the charges and the exchange rates.
     
    Danny Z

    Danny Z

    Legendary Member
    I have frozen USD account in Leb Bank up to October 2020.
    I am still gettting the interest and able to spend it/cash it from abroad using the debit card.
    Any ideas?
    I tried to buy property but the bank refused to even give me a check since the account is frozen; is this legal?
    wait, are you saying you are able to withdraw cash on ATM outside Lebanon? and your account is frozen on top of that? heck why don't you withdraw everything then?
     
    SeaAb

    SeaAb

    Legendary Member
    Staff member
    Super Penguin
    wait, are you saying you are able to withdraw cash on ATM outside Lebanon? and your account is frozen on top of that? heck why don't you withdraw everything then?
    He's withdrawing from the interest he's getting...
     
    Mrsrx

    Mrsrx

    Somehow a Member
    Staff member
    wait, are you saying you are able to withdraw cash on ATM outside Lebanon? and your account is frozen on top of that? heck why don't you withdraw everything then?
    Cashing interest not the lump sum i think ...
     
    Danny Z

    Danny Z

    Legendary Member
    Cashing interest not the lump sum i think ...
    There is no interest, they're are giving him money from his money if any, interest is a scheme, there is no money against the bank number. It is interesting to see if the can get all his money + interest then we know what he's getting and if he's even able to get his money.
     
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