First time investor in dubai.

[Jøran]

Hi Guys!

I'm thinking about investing into one apartment maybe in Dubai.
After reading through forums and articles for a while, i have some questions about where to invest in dubai.

What do you guys think about the town square? I'm looking to buy to rent it out. will this investment be viable?
The price i'm willing to pay will be around 500k aed. As i'm actually a student, i think this is the highest i can go.

Also, how safe would it be? any tips?
I see that there are a lot of different opinions on this forum, as how good dubai are for investment. And i'm looking for a way to do this as safely as possible.

Thanks guys!

 

[Dennis Cortez]

Hi Joran, 500AED would get you a studio or 1br on International city for around 400k with a good rental income if this is your strategy. You can do flipping as well or invest in 2 apartments with spread payment while it's on rent. This you can enjoy property value appreciation if you get a good deal and in a good area!

Hope this helps.

 

[nmb]

Personally I would look towards a long-term investment if I was making funds available for the Dubai real estate market. Once you have experience of the Dubai real estate market then perhaps you could look to flip properties in the future. The idea of flipping is relatively simple in theory but timing, finding the right property and keeping costs to a minimum is not easy.

 

[Dennis Cortez]

Both strategies require timing too as you make money the moment you buy. I usually recommend investing in long-term and do buy to let while the property price increase. Of course, this requires a knowledge in the area. We have invested in different areas in Dubai and different areas have different mix.... extreme mix in some areas. The key is when you have the money to invest... do research... if you don't have time, ask!

Hope this helps.

 

[nmb]

The main difference between flipping and long-term investment in Dubai property is obviously the timescale. If your long-term strategy is correct then you should make money but if you are constricted by short timescales, because you are flipping a property, short-term events out of your control could have a major impact upon your investment return. Indeed, when we saw the market downturn after the 2008 US mortgage crash many of those looking to flip properties in Dubai were left with unwanted investments when buyers disappeared.

 

[Moaza Al Shamsi]

Hi Joran,

Being a first timer investor with such a budget I would personally visit Dubai to see the areas and decide before making any decision. I have also seen posted above a suggestion to purchase in International City, just a pre-warning for you that is a very bad area to invest in as its basically turned into slums. If you are more interested get back to me and we can discuss and I can advise you as I own my own family real estate business and a lot of foreigners are being duped in by agents and lose a lot of money.

 

[Zishan M. Khan]

Hi Jøran,

International city is not the best choice.
Nshama townsquare is a good choice for an offplan property. The developer is an unofficial subsidiary of EMAAR properties, one of the biggest developers of Dubai. The project is on a 3 year payment plan. But you will miss out on the rental income. The project is massive, so expect realistic delays in handover/completion.
I would recommend sports city or Jumeirah Village Circle/Triangle for a ready property or something that is nearing completion. You would do far better investing in theses areas.

 

[Jøran]

Hi guys! No one responded for a while so i haven't checked in for a while Thanks for all the feedback! I will check out some other locations, and stay away from International city!

How would you guys think Nshama will be? Or something in Dubai marina?

Thanks guys!

 

[nmb]

Do those looking to invest in Dubai feel more comfortable with the new regulations which came in after the 2008 worldwide economic crisis? The authorities were forced to offer more protection to investors and developers as well as firming up the banking system. Has this given investors more confidence?