Buying property to rent in Dubia

chatter-box-charlie

Has anyone any experience in buying property to rent in dubia... what the pro's and cons are..
There is major project work going on over there so would it be wise to buy now off plan??
Any ideas?

flossy_splodge

Where??? Do you mean Dubai?

chatter-box-charlie

flossy_splodge wrote:

Where??? Do you mean Dubai?

haha Yes Fossy I did, why do you have any suggestions

lynzpower

I often wonder about these, just out of interest Chatterbox Charlie, who do you rent the properties to? Whos the target market?

missk_ensington

Id be cautious, Ive heard several 'Martin-alikes' saying the market in Dubai will crash. Supply and demand, the supply is outstripping the demand and we all know what that means! Id do your homework on this, although i've heard off-plan is the best way if you are intent on buying as the value increases between you buying offplan and the house completing.

Doozergirl

The Dubai property market sounds like a pyramid scheme to me. Buy off plan and sell on to another investor without having to pay the balance... It sounds incredibly high risk to me; moreso than the new build apartments over here that I keep ranting about. There's no doubt that quick gains have been made and maybe there are still some to be had, but when the bottom falls out of the market, people are going to lose big time.

How can the population realistically be growing as fast as they're building and why on earth would everybody need/want to live in skyscraping apartments?

F_T_Buyer

The stock market in the UAE fell 34% last week. I'd be wary... the condo market could turn on a dime, and catch you with your pants down!

chatter-box-charlie

thanks for all your info everyone. There are of course soooooo many apartments coming up and I know some of them you maybe onto a loser because of oo much supply. The area of which I was thinking of buying in was The Palm which is more than just your average high rise apartment block. It is near to the Jumeirah Beach hotel and the Burj Al which are two of the most sort after areas for tourism.

I wasn't actually thinking of buying to sell on but to invest and let out to holiday makers as at the moment to house a family of 2ad 2/3 children to stay in any of the hotels cost an arm and a leg ( I work in the travel industry) and would have to mainly have two rooms ( which most families dont like the idea of if they have small children).
So in this instance it would work out so much cheaper for them to go..

Of course I do need to research it alot more than I have done, so if there are any of you who has bought in this area or knows more to give me some information.


Once again many thank for everyones input

chatter-box-charlie

lynzpower wrote:

I often wonder about these, just out of interest Chatterbox Charlie, who do you rent the properties to? Whos the target market?

I was looking at renting to families who want to holiday in dubai. It is very popular as a holiday destination and I do get alot of people wanting to go, but if there is a family of 4/5 then the price can be near to £9k as most will need 2 rooms therefore all paying adult prices!! So by renting out a 2bed apt not only will the family be together in the same apartment but the cost will be per apartment and not per person which could reduce the amount significantlyprobably to just over half the amount on the above figure.

lynzpower

You say you work in the travel industry, well I guess you would be able to get better figures than me, but I do know My parents got a weeks holiday in a 6* hotel with flights included, all inclusive the meals etc for 800 for the two of them not so long since. Not much hunting, got it off the teletext. Do people tend to holiday in Dubai for 2 weeks? Almost all of my mates have been at some point, and theyve never gone for more than a week, many just for the weekend. At the end of the day, you have access to the figures. What do a family pay ( of course usually including flights/ transfers) for 2 weeks, whats the availability like. I expect availability is high which is why my foks got such a cheap deal. Would it ever be cheaper to do book accom seperately with the rates that you will charge. How do the figures stack up? You say this is a family apartment, who do you propose will be staying in it when the school holidays are finished? Where will you market the property? Have you researched where gets good return for advert price etc.

Renting week by week involves a management company ( & cleaners etc), have you priced this up?

And you might want to look at the channel 4 homes forum theres a whole section there on buying abroad, Im fairly sure there were lots of people buying in Dubai when I used to look at it a few months ago ( before I found here )

HTH

flossy_splodge

Hey! I agree with some of the responses you've had. Investing in Dubai is following the market rather than being ahead. You can pick up some really good deals there at present which does suggest saturation point is near. How about looking at Abu Dhabi or similar? These inflows of cash sometimes flow sideways and when Dubai is oversubscribed it might all move sideways? Look at a map! Actually I would buy in Oman if that is possible now. Much much nicer country, people climate and experience. Good Luck.