Suggestions needed in my first Dubai investment

[Roshan]

Thanks a lot Roshan, for your time replying my post.. Yes, I have 600K AED only cash available.. And not interested in Mortgage, what do you suggest?? Interest would be an extra load and actually, I don't know its procedure as well.

Anyways, do you think 1bed will be worth buying? As I have been told on this forum, that families need atleast 2 beds (one for the childrens and one for the parents).. So, one bed is not of much use.. Either go for a studio or a two bed... Anyways Roshan, if you had given a choice to invest, where do you invest? And what? 1 bed? Let me know. Thank you very much..

Anyways, I have a studio offer in JLT for 550K AED, worth it? Let me know. Thank you

I would not suggest you put in all your money in buying a flat. It's common to use OPM ( other peoples money ) in real estate.

For eg, on a 1.4 million dhs flat ( 1987 sq ft ),I just put 20% ( Dhs 273,000 ) and got the bank to finance Dhs 1,092,000 for 15 years. The monthly EMI would work to about Dhs 11,000 per month. Expected rentals would be Dhs 180,000 ( Dhs 15,000 per month ). That leaves me with Dhs 4,000 profit ( positive cash flow ) using the banks money. In other words, I get my tenant to pay for my mortgage and property while my property is appreciating. Don't forget in 2 years time, the property value would have appreciated from Dhs 705 to Dhs 1200 hopefully, giving me an instant equity of Dhs 985,000 besides the rental value I get leading to a win - win situation.

What I am trying to imply here is why put all your money in one place. You could try and invest in more than 1 property and get the benifit like above. Pls note that, if the price of property is too high, then you might end up in negative cash flow. Download a mortgage / rental calculator and put in all the figures to see where you stand. I will try and post a mortgage calculator in my next post.

Under ideal situations, a 2 BDR would be ideal for a family. But things are changing, the cost of living is going high. My observation between a studio and 1 bedroom was based on your capacity to pay. I still feel a 1 BDR is a good compromise. Don't forget, in time to come people would be going for smaller places to rent, as the cost of renting out will be very high.

A studio in JLT seems to be a good idea. Is the property ready - OR - under construction. A price of Dhs 550,000 is a good price in my opinion, as you want get anything less than that in Dubai as of today. Find out whether the areas are gross or nett.

I underwent a 2 day property secrets course with Sunil jaiswal and i learnt a lot from him. I owe my knowledge, my success to Sunil. I will ask permission from him if I can post his details on this site, and if yes, then I can give you more details. Sunil started just like us and to day, he owns property all over the world.

More to come.....

Regards

Roshan

 

[Demoniise]

Hi Roshan,

Which mortgage company did you use in the UAE?

 

[mpat]

My unwanted advice ...
If you have 600k CASH ready,dont wait adn wait and wait,. ,. ,. Just put it in some place and it will make you worth wait,Like what ROSHAN said sometimes back, ITS GOOD TO INVEST AND WAIT, NOT GOOD TO WAIT AND INVEST.
I feel that you should look for something that is with good payment plan so that you dont face problems for paying huge installments.Nowadays many developers give good payment plan just to get things sold....
Look and do research.
Bye

 

[manman]

Agents

Hi Roshan
Many thanks for your advise. i will be in Dubai next week and would really apprecaite if you can email me contact details of any agent you know who can help me buying a property Please email me to mansoor_work -- hotmail --com

Regards
Mansoor

 

[Roshan]

Hi Roshan,

Which mortgage company did you use in the UAE?

Emirates Islamic bank on the Motorcity project.

Roshan

 

[Roshan]

My unwanted advice ...
If you have 600k CASH ready,dont wait adn wait and wait,. ,. ,. Just put it in some place and it will make you worth wait,Like what ROSHAN said sometimes back, ITS GOOD TO INVEST AND WAIT, NOT GOOD TO WAIT AND INVEST.
I feel that you should look for something that is with good payment plan so that you dont face problems for paying huge installments.Nowadays many developers give good payment plan just to get things sold....
Look and do research.
Bye

As mpat said, always look for good payment terms and take advantage of bank finance.

Rgds

Roshan

 

[faisal]

does any body know about the DEVELOPERS named AQAAR, and how their projects prospects?

 

[faisal]

i am looking for an good investment to be paid in instalments of 3 years located in dubai of a total worth of about 1000k

 

[faisal]

informative note

i am really greatful that was very informative thanks roshan, i will be looking forward for the calculator you mentioned.

regards,

faisal

I would not suggest you put in all your money in buying a flat. It's common to use OPM ( other peoples money ) in real estate.

For eg, on a 1.4 million dhs flat ( 1987 sq ft ),I just put 20% ( Dhs 273,000 ) and got the bank to finance Dhs 1,092,000 for 15 years. The monthly EMI would work to about Dhs 11,000 per month. Expected rentals would be Dhs 180,000 ( Dhs 15,000 per month ). That leaves me with Dhs 4,000 profit ( positive cash flow ) using the banks money. In other words, I get my tenant to pay for my mortgage and property while my property is appreciating. Don't forget in 2 years time, the property value would have appreciated from Dhs 705 to Dhs 1200 hopefully, giving me an instant equity of Dhs 985,000 besides the rental value I get leading to a win - win situation.

What I am trying to imply here is why put all your money in one place. You could try and invest in more than 1 property and get the benifit like above. Pls note that, if the price of property is too high, then you might end up in negative cash flow. Download a mortgage / rental calculator and put in all the figures to see where you stand. I will try and post a mortgage calculator in my next post.

Under ideal situations, a 2 BDR would be ideal for a family. But things are changing, the cost of living is going high. My observation between a studio and 1 bedroom was based on your capacity to pay. I still feel a 1 BDR is a good compromise. Don't forget, in time to come people would be going for smaller places to rent, as the cost of renting out will be very high.

A studio in JLT seems to be a good idea. Is the property ready - OR - under construction. A price of Dhs 550,000 is a good price in my opinion, as you want get anything less than that in Dubai as of today. Find out whether the areas are gross or nett.

I underwent a 2 day property secrets course with Sunil jaiswal and i learnt a lot from him. I owe my knowledge, my success to Sunil. I will ask permission from him if I can post his details on this site, and if yes, then I can give you more details. Sunil started just like us and to day, he owns property all over the world.

More to come.....

Regards

Roshan

 

[HaiderAli]

I would not suggest you put in all your money in buying a flat. It's common to use OPM ( other peoples money ) in real estate.

For eg, on a 1.4 million dhs flat ( 1987 sq ft ),I just put 20% ( Dhs 273,000 ) and got the bank to finance Dhs 1,092,000 for 15 years. The monthly EMI would work to about Dhs 11,000 per month. Expected rentals would be Dhs 180,000 ( Dhs 15,000 per month ). That leaves me with Dhs 4,000 profit ( positive cash flow ) using the banks money. In other words, I get my tenant to pay for my mortgage and property while my property is appreciating. Don't forget in 2 years time, the property value would have appreciated from Dhs 705 to Dhs 1200 hopefully, giving me an instant equity of Dhs 985,000 besides the rental value I get leading to a win - win situation.

What I am trying to imply here is why put all your money in one place. You could try and invest in more than 1 property and get the benifit like above. Pls note that, if the price of property is too high, then you might end up in negative cash flow. Download a mortgage / rental calculator and put in all the figures to see where you stand. I will try and post a mortgage calculator in my next post.

Under ideal situations, a 2 BDR would be ideal for a family. But things are changing, the cost of living is going high. My observation between a studio and 1 bedroom was based on your capacity to pay. I still feel a 1 BDR is a good compromise. Don't forget, in time to come people would be going for smaller places to rent, as the cost of renting out will be very high.

A studio in JLT seems to be a good idea. Is the property ready - OR - under construction. A price of Dhs 550,000 is a good price in my opinion, as you want get anything less than that in Dubai as of today. Find out whether the areas are gross or nett.

I underwent a 2 day property secrets course with Sunil jaiswal and i learnt a lot from him. I owe my knowledge, my success to Sunil. I will ask permission from him if I can post his details on this site, and if yes, then I can give you more details. Sunil started just like us and to day, he owns property all over the world.

More to come.....

Regards

Roshan

Roshan, thank you very very much.. I believe, I have understand your point.. But what in under-construction projects, a project will take couple of years to finish and the interest will add one more mile to the cost of the unit.. Isn't it? Are you advising to invest in a ready-one? Let me know.

Anyways, I will be looking forward for the mortgage/rental calculator, as I am unaware of one.. Anyways, Roshan, can you refer me to any agent, which has knowledge and is honest too, so I can invest as soon as possible without waiting too much..

In my situation, it is better to wait and research rather than end up loosing my money, as I am quite unexperienced and not sure where to go and where not..?

Thanks, Haider

 

[alexft]

Hi folks,

Here is a calculator Mortgage Calculator -- Bankrate.com

Yes its good idea to use other people money but leverage carefully. Look at the recent bank collapses And ideally you would want to stress test your scenario. What happen if there will be over supply of rental properties? Currency fluctuations. Increases in your mortgage rate. And the list goes on.

Property can be rented only after completion. With current delays alot of projects might not be completed until 2009 , 2010. And its hard to predict rental demand in 2009.

In Dubai the best residential buy at the moment seems to be waterfront and villas if you can get one. As one of my clients said if you live in Dubai you want to leave near water. Its hot in Dubai


Regards,

Alex.

 

[alexft]

Update.

From exclusive sources.

Arabtec was issues with a letter from Mohamed Bin Rashid Housing Establishment
to design and construct 22900 villas at AlBarsha, AlWarqaa & Oud AlMuteena in Dubai.

Mohamed Bin Rashid Housing Establishment provides `affordable` housing to UAE nationals.

Project is estimated to complete in 42 months.

The question is who will buy properties priced at 3000+ AED per sqft at the moment?

Wealthy returning UAE nationals might be one group. Moscow wealthy business people is another group. Chinese business owners are buying too. Well designed and somewhat unique properties can offer good return. During recent launches properties with semi finish option went very fast.

There are some very nice properties in Dubai Marina still on the market from developer. So yes opportunities do exist.


Regards,

Alex.

 

[Roshan]

Hi folks,

Here is a calculator Mortgage Calculator -- Bankrate.com

Yes its good idea to use other people money but leverage carefully. Look at the recent bank collapses And ideally you would want to stress test your scenario. What happen if there will be over supply of rental properties? Currency fluctuations. Increases in your mortgage rate. And the list goes on.

Property can be rented only after completion. With current delays alot of projects might not be completed until 2009 , 2010. And its hard to predict rental demand in 2009.

In Dubai the best residential buy at the moment seems to be waterfront and villas if you can get one. As one of my clients said if you live in Dubai you want to leave near water. Its hot in Dubai


Regards,

Alex.

Alex,

I agree with you. Leverage should be a combination of both self finance. As long as you are on positive cash flow, you should be OK with high leverage.

Oh yes, waterfront properties followed by Golf course properties have always done well.

Roshan

 

[abudhabigreen]

Mu suggestion would be, if you do not have much money, buy into Hydra Village, a villa/townhouse is around 1M dirham, and will appreciate with the starting real estate boom in Abu Dhabi, and the need for cheaper housing (not everyone can afford to live close to water and pay high rental). PM me if you need help to find a reliable agent for Hydra Village.

 

[faisal]

what is JLT?

 

[fws]

Jumeirah Lake Towers

 

[faisal]

jlt

Jumeirah Lake Towers

what is the status of constuction? does the it worth to invest in JLT, what is approx prices going on ,if some body can answer this please?

regards.

faisal

 

[HaiderAli]

There are some very nice properties in Dubai Marina still on the market from developer. So yes opportunities do exist.

Hello Alex,

Can you please let me know the few of those nice properties in Dubai Marina?

And one more thing, does bank provide mortgages on Resale properties?

Thanks, Haider.

 

[HaiderAli]

Trying to use the Mortgage Calculator.. Just want to know, what is the interest rate there in Dubai?

 

[mpat]

Emirates islamic bank charges 6.5 % and commercial bank of dubai charges 5 %.