Buying property is a long-term secure investment and is one of the best assets to have. We’ve collaborated with one of our top award winning agencies, Allsopp & Allsopp and created an investors guide to guide you through your house hunting process.
The top 3 tips for buying property in Dubai are…
- Buy in the best location that you can.
- Buy the best view that you can.
- Don’t over stretch yourself, make sure to keep within your limits and not get carried away.
Budget and mortgage
Take the time to figure out your budget and speak with mortgage lenders to plan how much you are capable of borrowing.
Reach out to your consultant
Make sure to ask your consultant for documents on the property and the sales fees required.Once you’ve selected the property of your choice, make an offer and send the documents to your consultant. The next step would be to register the title deed for your property. Find a lawyer who is willing to outline the sale and purchase agreement (SPA) for you.
The top 5 communities to buy in Dubai which decreased in price are…
- International City ( dropped by 6.7%)
- Jumeirah Beach Residence (dropped by 6.6%)
- Arabian Ranches ( dropped by 2.7%)
- Emirates Living ( dropped by 17.53%)
- The Sustainable City ( dropped by 7.3%)
How to maximize your capital growth
In order to maximize your capital growth over medium to long-term ideally it would be best to consider buying property in an area which is not high in demand at the moment, but which could potentially be in the long-run then hold on until it slowly begins to appreciate in value.
Research is vital
When you decide which community your interested in buying in then take the time to look at sale and rental prices of similar properties in the area. Compare prices to get a clearer picture of the rental yield it could potentially generate.
If you are looking to rent out the property have a think of the features which could appeal to your tenant.
What is the best investment approach? Is it buying off-plan and selling upon completion or focusing on steady or high rental yields?
This all depends on your personal judgement and what type of investment you are looking for. For example, if you buy a completed property in Downtown then you will get a steady yield, but also a property in a prime location. This should perform well, or at least above average, in any market, remain popular and not lose as much value as properties in some other areas. However, you are not going to get the same kind of % capital appreciation as purchasing an off plan unit and being in a good market when it comes to handover/ sell. The best time to get into a development is at the earliest opportunity as from there you will see the greatest appreciation.
Both approaches produce results.
Our best saying is…‘don’t wait to buy real estate, buy real estate can wait’ – T. Harv Eker.
It’s easy to procrastinate as property is such a big purpose, however nobody has a crystal ball so it’s very hard to predict what is going to happen in a market. However, if you look over the whole of history of property markets, the values go up over time and the value only matters when you come to sell.
To look for a quick buck or not to look for a quick buck, that is the question…
Looking for a ‘quick buck’ is always a risky strategy that, whilst it works for some people it’s not advisable.It’s best to make an investment and then wait for the right time to exit, don’t put yourself in a position where you are going to be forced to sell at a time that doesn’t suit you.
The Dubai market is predominantly about affordable properties.
Dubai is a maturing real estate market, as well as a maturing city, and as in most cities around the world the majority of inhabitants are mid income level. It is vital to provide housing options that are affordable to them and previously there hasn’t been that much choice in Dubai on this front. This is changing radically now with some amazing developments at a great price point. Consequently there is a huge amount of demand for this.
Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.
-Franklin D. Roosevelt
To start search studios under 500 K here.
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