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Completed properties with tenants

Discussion in 'Dubai property' started by kk1974, Apr 18, 2008.

  1. kk1974

    kk1974 New Member

    Hi

    One more question tonight.

    What is the market like for an investor who would like to buy a completed property (both commercial and residential) with existing tenants?

    The logic would be that its a safer investment than off-plan because you have something you can actually see how it is performing, you can see what is realistic rent achievable etc.

    Where to look for such properties being advertised?

    Would you recommend such investment?

    Thank you.

    Kana
     
  2. kk1974

    kk1974 New Member

    I understand the premise of higher capital appreciation, but the question is - how strong is the off-plan resale market?

    Everyone with a bit of brain is looking for pre-launch opportunities, and in the case of any shake in the market, this segment is first to suffer.

    I'm new to Dubai market, but my sense tells me that the only 'safe' exit route for off-plan resale is to leave enough juice in as an incentive for a new buyer.

    Since it looks like the Dubai property market is at the moment dominated and driven by investors rather than end users, leaving some juice in by selling low seems like the safest way to get it moving fast.

    The profits are not depending only on the appreciation, they are equally depending at the timeline of the investment.

    If my judgement is right (and I'm requesting all the experts to correct me if I'm wrong), then the most important question here would be how much below the 'market value' you would need to sell your off-plans to shift it quickly, and compare that realistic capital appreciation with the profits generated from solid buy to let investment that is already up and running. Also, the risk factor is significantly different.

    I appreciate your point about the project management, tenants etc. I would also really appreciate if you could help me understand the situation in Dubai in that regard. Are there laws helping you with non-paying tenants? How good are the project management companies?

    Thank you.
     
  3. Wannaberich

    Wannaberich New Member

    Kana regarding non-paying tenants.In dubai they pay u well in advance for rental.2 x 6month cheques,4 x 3month,even 1 x 12 month.It;s illegal to bounce a cheque in dubai also.
     
  4. kk1974

    kk1974 New Member

    Thanks. Sound good.

    What is the eviction law like? What happens if the cheque bounces, and tenants continue not paying? How is a landlord protected legally and how does it work in practice?
     
  5. Wannaberich

    Wannaberich New Member

    Not sure about eviction law.All I know is that u just don't bounce cheques in Dubai.
     
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