{"id":691,"date":"2017-11-22T16:19:58","date_gmt":"2017-11-22T16:19:58","guid":{"rendered":"https:\/\/www.mortgagefinder.ae\/blog\/?p=691"},"modified":"2018-07-26T14:55:34","modified_gmt":"2018-07-26T14:55:34","slug":"dubai-property-purchase","status":"publish","type":"post","link":"https:\/\/www.mortgagefinder.ae\/blog\/dubai-property-purchase\/","title":{"rendered":"How to time your Dubai property purchase"},"content":{"rendered":"<p><strong>When it comes to buying a property timing is everything.\u00a0Price is what you pay. Value is what you get.\u201d <\/strong><strong>So said Warren Buffett.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-692\" src=\"https:\/\/www.mortgagefinder.ae\/blog\/wp-content\/uploads\/2017\/11\/shutterstock_431846140.jpg\" alt=\"\" width=\"651\" height=\"435\" srcset=\"https:\/\/www.mortgagefinder.ae\/blog\/wp-content\/uploads\/2017\/11\/shutterstock_431846140.jpg 500w, https:\/\/www.mortgagefinder.ae\/blog\/wp-content\/uploads\/2017\/11\/shutterstock_431846140-400x267.jpg 400w\" sizes=\"(max-width: 651px) 100vw, 651px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Having had the privilege of being involved in the UAE property market for fourteen years now, has ever a day\u00a0gone by without being asked the question: \u201cis now a good time to buy?\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Of course not. Dubai has always been a spectacle for Emirati and international buyers and it is no different from any other global city other than it is a mere infant compared to destinations such as London, Paris, New York, Hong Kong and Sydney, with the decree for legal title being issued to foreigners in 2002.<\/p>\n<p>&nbsp;<\/p>\n<p>With such a rapidly evolving market comes other considerations of course, but also great opportunity. Driven on the power of sentiment, it is common for existing and prospective property owners to react in haste and not with focus. As Warren Buffett also said: \u201cGames are won by players who focus on the playing field\u2014 not by those whose eyes are glued to the scoreboard. If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Much of the developed areas of Dubai have seen property prices fall by 30 per cent since the peak near the end of 2008 with apartments faring better than villas in most cases. Some analysts forecast a continued downward trend moving into 2018, both in price and rental value of completed properties, whilst there has been a marked boost in off-plan purchases this year, a recorded 16,173 transactions to August 2017 with July being the record month giving a total of 2,220 transfers.<\/p>\n<p>&nbsp;<\/p>\n<p>Whether it is a good time to own property or a good time to buy firstly depends on an individual\u2019s personal circumstances. You must understand why you want to buy, what you want to achieve during owner- ship and, most importantly, what you can afford to buy and sustain as commitment going forward.<\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<h2><em>Back in the days of pre-crash, investors were buying property as a commodity whereby there were thousands of trades a day \u2013 but these times are long gone.<\/em><\/h2>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p>The material and financial objective of owning a property is creating wealth over time, whether it be in capital growth, rental income or simply not paying your hard- earned money to a landlord in rent. The subjects of off-plan developments, supply coming to market, and the effect of Expo 2020 is a whole column in itself \u2013 so here my focus is on completed properties which are less speculative. Properties that can give a net return in excess of 6 per cent per annum, a sure indicator that it\u2019s a good time to buy.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" class=\" wp-image-725 aligncenter\" src=\"https:\/\/www.mortgagefinder.ae\/blog\/wp-content\/uploads\/2017\/11\/shutterstock_669633394.jpg\" alt=\"\" width=\"714\" height=\"478\" srcset=\"https:\/\/www.mortgagefinder.ae\/blog\/wp-content\/uploads\/2017\/11\/shutterstock_669633394.jpg 500w, https:\/\/www.mortgagefinder.ae\/blog\/wp-content\/uploads\/2017\/11\/shutterstock_669633394-400x267.jpg 400w\" sizes=\"(max-width: 714px) 100vw, 714px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>If you are thinking of buying as an end-user, key factors will come in to play. Location and connectivity in relation to work and schools, price, size, amenities, facilities and the condition of the property. If you are planning to stay in the UAE for three years plus, then it makes sense to own the property that you live in to create personal wealth provided that such a position is not likely to cause you financial stress in the future. Never be forced to\u00a0sell if you can help it, anticipate your exit strategy and do not overcommit.<\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<h2><em>If you are planning to stay in the UAE for three years plus, then it makes sense to own the property that you live in <\/em><\/h2>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p>As an enduser the next natural progression once you\u2019ve acquired a property is to personalize and improve it. Many properties in Dubai are now tired and could do with some TLC, both aesthetically and practically. Not only will this enhance the comfort of your living but upgrading your property makes it more attractive and popular when it comes\u00a0to selling it. This is a sign of a maturing market.<\/p>\n<p>&nbsp;<\/p>\n<p>As an investor looking for a high yielding but steady investment, much of the above remains the same and you should not disassociate with it and just focus on price. It is easy and, unfortunately com- mon, for property owners especially when residing outside of Dubai, to neglect their property so long as the rent cheque arrives. An investor who is not only looking to achieve a good return but to maximise it, is the wise one. There is a draw towards brand new properties due to higher specs and less maintenance issues but also con- sider that some of the most popular rental properties are in the best central locations of Dubai but are getting older.<\/p>\n<p>&nbsp;<\/p>\n<p>The worst situation for a landlord is that the property remains empty between tenancies. Every month accounts for 8.3 per cent of the annual rent and that\u2019s not the idea, is it\u00a0Void periods are costly for an investor so ensure that you have a good relation- ship with your tenant and softly vet them when you sign up. Make your property presentable for viewings, first impressions count and reflect on the landlord.<\/p>\n<p>&nbsp;<\/p>\n<p>Maintain your property as though you were living in it, to fix small issues every few months with a tenant in place is better than having to take it off the market for a complete overhaul.<\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<h2><em>If you have a good tenant and they ask for a price reduction of 5% on renewal in line with the market, do it, it\u2019s better than holding out for your price, having an empty property and then still having to accept a lower offer. <\/em><\/h2>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p>If you do experience a void period consider upgrading the bathrooms or kitchen, it will add value and demand for your property.<\/p>\n<p>&nbsp;<\/p>\n<p>Consider taking six to twelve cheques, just like the UK rental market is based on monthly payments, this way you can justify a higher annual rent and again there will be more demand.<\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<h2><em>When rental values are in decline, which we will most probably experience over the coming months, investors need to play smart. Property is a long-term game and it will repay you in abundance if it remains tenanted.<\/em><\/h2>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p>Finally, work with a reputable estate agent to represent you and your property who has your best interests at heart, a good property manager will generate a greater return.<\/p>\n<p>&nbsp;<\/p>\n<p>___________________________________________________________________<\/p>\n<p>By Helen Tatham\u00a0Managing Partner of <a href=\"https:\/\/www.propertyfinder.ae\/en\/broker\/prime-places-real-estate-1295?page=1&amp;agentPage=1\" target=\"_blank\" rel=\"noopener\">Prime\u00a0Places\u00a0Real Estate.<\/a><\/p>\n<p><em>This article appeared in<a href=\"http:\/\/www.prestige-magazine.ae\/wp-content\/uploads\/issues\/31\/index.html\" target=\"_blank\" rel=\"noopener\">\u00a0Prestige Magazine November\/ December 2017 issue<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to buying a property timing is everything.\u00a0Price is what you pay. Value is what you get.\u201d So said Warren Buffett. &nbsp; &nbsp; Having had the privilege of being involved in the UAE property market for fourteen years now, has ever a day\u00a0gone by without being asked the question: \u201cis now a good [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":692,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to time your Dubai property purchase - Mortgage Finder Blog<\/title>\n<meta name=\"description\" content=\"When it comes to buying a property timing is everything. Price is what you pay. Value is what you get. 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