Is buying a Dubai investment property a good idea?

If you have bought a property in Dubai, then you will no longer need to pay rent to anyone, also you can get away from the 37% average rental hike this year. Anyway, you should take a further step and making yourself to become a Dubai landlord.

When you turn to be a landlord you are going into Dubai property investment business, not only a house owner. This going to be a big change for you, and demands a business-like approach, else you better keep your saving in the bank or going for a good holiday trip instead.

Being in Dubai property investment business is not for everyone, but buying rental properties in Dubai still increase everyday from a business view, provided that you are a long term investor for property and not short term property speculator.

For instant, you buy a two-bedroom apartment in The Dubai Promenade area to let out, this going to cost you around Dhs650,000 and the gross rental would be about Dhs60,000, you need to less Dhs10,000 in service charge. So the net yield is 7.7%, it is enough to cover the mortgage if you bought the apartment by loan.

The advantage is that rents go higher year in and year out, so do capital values. If this year’s 30% rental increase was maintained, then in 2009 you would have Dhs82,000 in rent, and about 12% return on the buying price.

But there is also disadvantage. Rents could fall back depend on the world economy and supply of property in Dubai is keep increasing, this might send property tumbling if economy down.

Now purchasing property is a long-term investment, so what you have to be very careful about is that your financial status must be in good shape, in order not to wipe out entirely during the economy crisis.

Property moves in cycles, there are ups and downs year in and year out. So you can’t avoid some bad cycle periods during the time you own a property, but you do have to be ensures that you can survive throughout the bad cycle, thus you do not have to sell up at the worst time in order for you to live to enjoy the equally inevitable upside.

If you can find a good property in the strategic location, which offers a yield higher than the mortgage charge, then for sure over the long run you are stand at the winning side. Moreover, as rentals rise over time, you can pay you debt ahead by using the surplus income you gain from the rental, this will expedite your mortgage completion.

However, in more developed property markets this has become transparence, you can’t get much profit as yields have fallen to very low levels.

This is still feasible in Dubai, though it might in the future which is another reason to buy now and not wait until house prices are increasing and rental yields much lower.

Invest in Dubai, Most Upcoming Property Markets

Dubai is undoubtedly one of the fastest growth real estate markets in the world. It also is the safest investments you able to make on the overseas property market due to its transparent and thorough buying processes.

Property and real estate as an investment trend has been around the market for years and now there is another new trend in real estate emerging due to a region of the world that is really fast growing and becoming one of the most profitable and biggest tourist attractions.

This region is Dubai and its investment onto the real estate market has been fast as the city authorities of Dubai have make up their mind that the oil in the land sat on was not enough for a sustaining and thriving Dubai economy, so the city officers were try to shift to tourism. Dubai has been very manageable and successful creating a name for itself to be one of the favorite vacation spots, so people are starting to think about Dubai in an alter way and starting to consider buying property and real estate in Dubai.

The property and real estate market in Dubai has been particularly actively trade during the past three years. As the city has become more businesslike, it is more commercialized now and focused on serving those who intend to make investment in Dubai. Constructors and developers are looking for opportunities as they build many developments to satisfy the needs of all those who choose to purchase Dubai property.

There are many different types of property in Dubai that are being developed. The property built and that can be bought before it starting it construction. The different styles allow for Dubai property to become attractive to investor as well as property buyers, the different type of property suit the age or their individual needs. Property in Dubai generally starts at about twenty-thousand pounds but that is really the lowest price that the Dubai market will offer. The prices will increase gradually but a starter property in Dubai is still very good and will have a very cozy and comfortable atmosphere. Someone who is interested in the luxurious living in Dubai can expect willing to pay approximately one million pounds for a living. The amount of Dubai property available within this price range is amazing. With such a huge span, Dubai property can be suited for any budget!

Its also vital to remember that even if you don’t think to live in Dubai, still buying property in Dubai can be a great investment opportunity. Many people choose to use their Dubai property for a portion of the year and rent it out the rest of the year. This can make an excellent return for the buyers and will make you money when you’re not even visiting Dubai!

By the way, renting Dubai property is also a very good idea, some even agree that it is a better option than investing. Of course when renting Dubai property you will need to pay for the rental, but you will also not be the one to deal with the necessary household and maintenance of the property. Renting Dubai property can be a great choice if you plan on visiting for a particular time or if you simply want to rent the same property every year. Many visitors choose this option while considering visiting Dubai.

Whether you are planning on purchasing or renting Dubai property, it is important to hire a property and real estate agent that is well known the property status, familiar with the area and can tell you about all benefits of the properties you will be seeing as well as their advantages and disadvantages. This will assist you to avoid finding yourself in a situation where you are having a bad deal, or caught with unpleasant surprises of the property.

Property Investment In Dubai

I love Dubai and think that it is a city of the future that link to the world business, leisure and real estate industry,

companies all around the world are looking for a piece of the action toward Dubai. But is it at the moment is the right time to dabble into the Dubai property market?

Doing business in Dubai is really easy with minimal bureaucracy interruption and a just do it attitude that makes Dubai an attractive area for making business. The country wants foreign investment, they also try to increase its population as well. Economically and politically stability and low crime rates are also one of the features of Dubai.

International visitors feel secure as the heavily armed police and army is not found in Dubai. How can this state achieved such an oasis of tranquility is really unbelievable. The ruling Royal family are admired and spoken highly by the people of Dubai. It may be the lack of political interventions or political parties in Dubai that may indeed make this place harmony.

Dubai is now being well known as the business, leisure and sporting capital among the Middle East region. Overseas real estate purchasers and its millions of visitors each year are attracted to the liberal attitude and relaxed environment. Live is the feel of Dubai where almost all of the 1.5 million populations are in fact expatriates.

The normal temperature in Dubai is between 10-30 degrees Celsius and it can turn up to 48 degrees in July-August. The climate in Dubai is sub tropical, most of the time is hot and dry, and arid rain is seen during the winter months of December-March.

The properties were bought among the international investors from Russian, British, Indian and Pakistani investors. The French are now seeing the potential of this region and foreseeable to become one of the major investors in Dubai.

The Middle East and United Arab Emirates investors are amongst the earliest investors. Buying real estate and property in Dubai as an overseas buyer is quite simple and straightforward. Most of the real estate in Dubai is come together with off plan or pre construction. Typically as real estate and property developers launch a project there is flurry of activity amongst investors. Seasoned speculators have speculated about the bubble bursting in the Dubai real estate market.

Property oversupply has led to concerns by overseas investors. In 2010 the number of houses in Dubai is set to double from around 260,000 to 530,000. The commercial sector is also constructing and expanding at a rapid rate. The office space is set to triple, so who play the major role in buying all this real estate? Dubai Property Authorities are keen to explain how Dubai is a wonderful region to invest.

A government backed property developer, Nakheel, and its Chief Executive Chris O’Donnell said that people do get a little concerned about Dubai rapid development, thinking we are just building and hoping we will sell the building upon completion. But we sell building before starting construction. Everything you see at Palm Jumeirah has been sold”.

Dubai Properties Chief Executive Mohammed Binbrek: “We do not start another project until the units are sold, then we ask for a 70% deposit.” When asks if he thought the Dubai market would collapse with so much construction taking place, he replied ” Around 40% of the population, their age is under 20, it implies much more houses are needed. With so much construction planned undergo to make Dubai the city of the future, it is the best time to buy property in Dubai. But just don’t be too optimistic and overt.

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