The million dollar question, where to buy, every one has its own opinion and more over people listen to someone who himself don’t know the answer, people ask friends and relatives what to buy and where to buy and most of the buyers end up in buying the wrong product or projects. Before buying a property in Dubai always keep in mind few things The Goal- what is our objective with the investment, is it a long term, a short term, renting or our own home Our own home – if this is the case then the investment is not and investment it’s a dead investment, that means you will not create a wealth with it, this is just for the family home. For this you have to choose a very right option for yourself and for this investment I will suggest you to buy from the secondary market only after visiting the same type of properties which you tend to buy. For example – if you have children and you want a big house – look at the investment budget you have a range upto which you can invest. Choose the location wisely- where there are schools around, swimming pool, garden area, shopping areas and everything you may need in daily life. If you opt for the apartment, then consider the community, may be that is far from the city or inside the city should not matter as this going to be your home for at least 7-10 yrs. Community should be nice, it should have similar set of people and should be surrounded by all amenities you need for daily life. School and hospitals should be around with shopping complex and restaurants around that area, if there is a beach or marina, would be an added advantage. Villas – should be chosen wisely, you need to take care of the quality of the villa plus there should be a room on the ground floor for the guest or aging parents as you will need it sooner or later and then you will have a need to search for another villa. All rooms should have ensuite bathrooms and wardrobes, this is must, snagging should be done properly by the professionals. Rain water proofing should be done for the floors and the terraces, any splash rains in Dubai can cause the severe damage to the villas. Investment in Dubai – then comes the second category – where to invest then there are many choices – when to invest and where to invest When to invest – there is no good or bad time to invest, markets always goes up and down and no one really can time the market and when the market is at low people are afraid to invest as we all think about what will happen in future, or keep the cash, as we never know when we need it, and when market is low everything is cheaper but we are afraid that it might go more low and in this thinking thinking the market pics up and we are unable to pick any unit and we miss that opportunity, so no one really can time the market. So its better to invest and wait for 10-12 yrs with the real estate and keep on buying the inventory at the regular stages, and in this we need to buy the developer stocks which are on the long term payment plan. Now you will ask what I will do if I am living on the rent and how will I pay installments of the developer as well as the rent- my answer is simple first buy the ready house for yourself – stop paying the rent – you can take a mortgage and buy, keep accumulating the money till the time you have half the money for the first house. Do not take 80-90% of mortgage as that can be risky, if you lose the job or business – you will tend to lose the house as well. If you are living in your house and have capacity to invest, look what is your investment range and what you can choose to buy, keep in mind the objective – first is rental income or appreciation or both This is the city which is full of High Networth Individuals and people who can afford to live here, they invest, so choose the luxury property, these units are always in demand whether it is crises or boom time. Places to choose for luxury is a different subject and it is vast – palm Jumeirah is always in demand and will be in demand , `Dubai hills Estate golf facing villas have given 100% returns in the last 3 quarters – Fairways vistas plots were trading at AED 300 AED psft in 2019 and in Jan 2022 they were trading at AED 1000 psft, this is the increase of 300% profit on the initial investment, so you never know which property is going to boom, but the anticipation is the premium you buy the premium you get on that property, this is simple, and very very simple rule. But then you will ask why should I invest now in DHE if the plots have appreciated, yes you should not buy here to invest but to construct the villa, as the price of the plot here is 10 m approx. but the villas of 6 beds are trading at 20 m – you can still make profit on the investment. Or search for the stock of similar profile with the other developer or in the other development. Emaar is one company which never reduces the prices whether it’s a week market or strong economy scenario. In the week market they offer you the DLD fees waiver and the payment plan, but the include this by making the properties expensive by 8-9% from the launch prices, so it is good for the old buyers as they prices for their properties have increased and on the other hand the people could not afford they can now afford the property on the long term payment plans (PP). this is the scenario we have seen in the recent past in 2020 when the property market crashed due to covid and for Emaar 2020-2021 was the best years as people have invested 25bn AED with them. It all depends on what you want and what you need. We can quote several examples about it- the townhouse have given the best returns in the last 2 years but people from outside the country have queued up for the apartments as they think that dubai is all about marina and burj khalifa, these 2 areas have appreciated by 10% at the max and Emaar beachfront has be astonishing – the units is Elie Saab building facing the palm 2 beds were priced at 3.8 m by emaar and now they are trading in the secondary market at 5.8 m and buyers have just paid over 30% which is around 1.2 m and they are pocketing a profit of 2m on top of 1.2 m paid by them which is 180% profit. These are the investment which you choose and wait for right time to sell, but look the villas on the other hand, Nakheel sold the villas 5 beds in Al furjan area for 4.2m 7000 sq.ft. plots, now they are at 6m profit of 1.8m and people have just paid over 1.2m which is 30%.
By: Nitin Bhargava
Date Created: 2022-02-18 04:47:06