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Need Some Advice

Discussion in 'Dubai property' started by Ayyan, Jan 2, 2009.

  1. Ayyan

    Ayyan New Member

    I have a villa in the arabian ranches Alvarado which i brought in 2007 for 3.4M AED . I owe the bank say 2.3M AED .

    My montly installments are about 17k .

    I have rented the villa for 330k AED

    I would guess the current market value would be say 4.5 to 5m . Early last year it was 6.2m AED

    What should I do hold or sell is the question

    your thoughts and opinions apperciated
     
  2. Roshan

    Roshan New Member

    Why press the panic button when you have a positive cash flow. Wait for the markets to go up and then sell. You will not get a good price if you sell now.

    Regards

    Roshan
     
  3. financier888

    financier888 New Member

    I agree with Roshan - as long as your rent is covering your mortgage - hold. You even have room to cover the mortgage if the rent decreases... Re-think it in May - and see where the market it. I would hold it and rent it as long as you were covering your debt service - you have a good performing asset . Do you have pay the monthly maintenance charges? does the rent cover that also??? it should - You bought it right...
     
  4. georgihh

    georgihh New Member

    If you can sell, you can reinvest in a smaller business and you are safer
     
  5. Ayyan

    Ayyan New Member

    everything is covered i clear 130k a year

    but dont really fancy going into negative equity hence the post

    but good idea see what happens next year
     
  6. Ayyan

    Ayyan New Member

    i really brought it to live in and dont want to sell if i dont have to its a nice house

    and the other problem there are no buyers
     
  7. jags

    jags New Member

    i have 1br in DM.rented. soon renewal is coming up. 2br in JLT.handover is next month.both cash buy.bought at 745psf and 780psf.should i sell them while i can still make some profit and currency is in my favour.or rent them out and wait.what are the current selling price psf in both the places.and how much rent for 2bdr 970sft in JLT.

    advice will be appriciated.

    thanks
     
  8. georgihh

    georgihh New Member

    Keep it than
    I don’t think the price will go down more than 250k per year.
     
  9. Wannaberich

    Wannaberich New Member

    The fact you have tenants almost takes the decision to sell away from you as this will make it much harder to sell.
    The only way I would sell myself is if I could get a very good price and then re-buy something at a bargain.
    Tha fact you are getting a very good rent and that your villa will be worth alot in a couple of years means whether you sell at a good price or hold on to it you will win both ways.
     
  10. financier888

    financier888 New Member

    Really depends on what your expectations are in regard to 'profit' - both the flats you mentioned were purcahsed at good prices especially the former. Calcluate the ROI based on the rental and see if that works for you - in regard to a sale - now is not a good time IF you can afford to hold and collect the return on the rent...

    good luck !
     
  11. jags

    jags New Member

    thanks for the reply.

    my only concern is will prices fall further.can i make loss on my OI. will Dubai ever recover. will it be easy to rent out in the future when demand and rents fall further. if demand for rental sustains i can afford to keep them.

    this is going to be our pension in few years time.if i sell them up i can pay off 2 rental properties in UK. though return will be reduced it is safe at home.

    thanks
     
  12. georgihh

    georgihh New Member

    Uk 100%.

    UK 100%.
    Stable market with history
    On top of that you will get the same amount of pounds as early last year
    It is a win-win situation
    It’s your choice, but if I was you I will reinvest in UK.
     
  13. Djjunior

    Djjunior New Member

    why not put them out on the market, see what type of offers your getting?

    If you can cash out, even if its a 10% gain I would take it man.. you never know what can happen tomorrow, cash may be king after all.. Plus you make a nice 30% gain on currency exchange, so overall you have still done well on your investments...

    In a recession you really do want to be debt free, that would be my primary concern, so in my opinion I would take all measures to increase my cash holdings and reduce my debt payments, as you don't know where the market can go...


     
  14. Roshan

    Roshan New Member

    You clear 130K. WoW everybody would love to be in your shoes. :cool:

    Ranches is considered a good investment and the chances of getting into negative equity is minimal.

    Rent the villa out and get money coming in every month. Don't have to depend much on a job. You are financially free...and when you have had enough, sell it and put the money into something else.

    Regards

    Roshan
     
  15. naxal

    naxal New Member

    To All Fellow Forumers

    Could also also shed your honest advise/suggestion to the following :

    * For people who have bought in Dubai Lagoon ,(Dubai Investment Park) at the rates of Aed 650 /sq ft , what is the best route for them NOW . The completion date is revised again to 2012 with a vague compensation plan .The only wonderful part was that the payment plan which is that only 50% of the unit price is to be paid till completion ,remaining 50% on a 5 year installment basis .

    Looking forward to your inputs ......... ;-)
     
  16. iceman

    iceman New Member

    hi!!! guys ...i am new to this forum ...pls tell me about queue point properties by al mazaya.they havent start the construction and suppose to complete by 2010 ..
    thanks .i have paid 20% and 10% in january 09 and 70% after completion .
     
  17. sk302016

    sk302016 New Member

    read Escrow Related Information and all information about RERA

    Hi Iceman,

    I suggest you spent time to read this forum especially the topic "Escrow Related Information" and all topic about RERA.

    Did you pay your 20% to your escrow account or to the general business account of developer? This is where you start to propect your rights and money. Don't transfer any more funds to the general business account of your developer.
     
    Last edited: Jan 3, 2009
  18. Ayyan

    Ayyan New Member

    if you can wait its all good but i reckon this project wont be ready until 2015

    is suggest you join this board everyone here wants a refund

    Dubai Lagoon Message board - Home
     
  19. naxal

    naxal New Member

    I've joined that board long time ago AND what's the use of a refund which is without any interest or compensation attached to it .

    BTW , If u could pls explain how will waiting help me >>>>>>>> Are u hinting that prices of this project will rise ? ? ?

    Regards .
     
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