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I have 1m AED to invest in property in Dubai. How should I spend it?

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By Rajesh Mirchandani
06 Oct
2022
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So, you have 1million AED to spend in Dubai but don’t know where to start? Look no further, this guide will help and if you follow these tips, hopefully will make the most of your investment.


Location
Sorry to bore you, but here we are again. Location, location, location! Find the spot that works best. It’s ALL about location. We regularly mention this in our blog and there’s a reason why. If your property is in a poorer place, the chances are it won’t do as well for you. Think long and hard about what you want and the type of community you want your property to be situated in. Look at the pros and cons of each area. The more luxurious parts of Dubai are very expensive, but there are good deals to be snapped up in other parts of the city so don’t ignore them!


Spread your risk
Rather than buying one property for 1million AED, have you considered buying two for 500,000 AED each? It’s a tactic worth thinking about as it’ll be two different projects or locations. That way, if something goes wrong with one property, you still have the other as back-up. Of course lesser properties will result in lesser rent, but you’ll have two income streams, and your journey of owning a property portfolio is well underway!


Look at purchase options
You have to be careful here, but if you look at off-plan properties you can pay slowly or gradually. You can either be a risk taker or risk averse. We know of clients that only buy off-plan properties on the first day of the launch. Their strategy is to try to sell it right after making the first payment and they have succeeded many times.

 

Think differently

When investing, most people look at the Marina or JBR, areas that are popular with tourists, but with your budget, you might want to go a little on the outskirts, where great deals can be done. JVC – for example – is only 10-15 minutes from the tourism hotspots but is much cheaper. We recently bought a property there for 735,000 AED and within two weeks the price had gone up to 850,000 AED. The building is new and has just been handed over. For us this meant that we would have a one-year developer liability period warranty (snags and other issues in the property would be taken care of by them), less service fees and of course a newer look and better finishes. The seller was motivated so we got a good deal. That property is now renting out at 75,000 AED which is an amazing yield. The most important thing that really matters as an investor is your ROI, so have a think, do some research and it’s almost certain that a good return is coming your way.

Tags: RERA Off-Plan Villa Townhouses News Blog Lifestyle Travel

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