What’s the Best Way to Invest & Grow £65K?
Here are the top 3 options:
1. Do Nothing with it – Keep the money in a Savings Account
2. Traditional Investments – Put into Shares, Pension, ISA, various Funds, or even Gold.
3. Property – Buy an investment Property in Dubai.
Here we look at these 3 options in detail
Two of the most popular countries considered by International Investors for property investment are the UK and Dubai. Our group companies (Find UK Property and Openshore Dubai Property) sell and manage property in both of these locations, and so we thought we would give you a summary comparing these two options – UK Property or Dubai Property.
Last year, about 8 months ago, we told you that the 2nd Dubai Property Boom had started and we were the first company to tell you this.
At the time we expected property prices to rise fairly quickly over the next few years back to peak 2008 levels and then go beyond these before slowing down. This indeed is happening! Prices are now rising every month.
But Will it be another Boom and then Bust? Continue reading
Why Some Customers want ‘Off-Plan’ Property
We are frequently asked about ‘off-plan’ or ‘under-construction’ property with good payment plans. Developers promote such properties at high prices but with the attraction of payment plans spread over 2 to 3 years. Currently such properties are typically premium 1-bed units costing over AED 1 million (£180K); or larger even more expensive properties for future own use. Due to the payment plans over 2 to 3 years, the properties seem affordable and good value to investors.
Whilst there are some good off-plan projects being launched, buyers still need to be careful.
Reasons for Buying a Dubai Property
We often get asked to state the reasons why people purchase property in Dubai. Wherever, we discuss a property sale with a potential client, we always ask them to decide on the aims of their purchase and proceed accordingly – see below.
a. Buying for Investment
Most purchases are for pure investment and the property is never used by the owner. It remains rented out. The aim is to get maximum net rental income and capital growth whilst acquiring a property that will be easy to resell in the future. In such a case, the smaller and lower cost properties provide the best investment returns and these are the properties we recommend. If you have a larger budget – buy multiple lower cost properties rather than one expensive property.
Over 90% purchase a low cost (Studio or 1-bed) investment property. A good example is like our best seller 1-bed property – details of which are attached (1-Bed from £45.1k). Full price is AED 359K and rental income can pay for 25% of the property – so customers would end up paying about AED 271,000 (about £45,167) themselves. These offer about 8% net rental yield and come with rental guarantees. We would recommend such properties as the best for low risk investment.
Top 10 Questions About Dubai property
Here is a list of the most popular questions asked by customers looking to buy a low cost investment property
1.Why are prices rising in Dubai?
After massive drop in 2008/2009 and relatively stability for 3 years prices are now starting to rise. The 3 main reasons are:-
-Dubai Population Growth (50% increase in next 4 years)
-Massive increase in Tourism
-Return in confidence to Dubai
The past 12 months have been worrying for many Dubai property investors. Property prices have fallen by over 50% and many off-plan projects (for which customers have typically paid 10% to 40% on a payment plan) are severely delayed and on hold.
Here is the Timeline