Quote:
Originally Posted by sammy1003
I see both pros and cons. I agree with you that it can be a safer investment, but remember that you usually get a higher capital appreciation on off plan properties. You will get an additional income through rental yield for finished properties, but you have to deal with tenants, letting/management companies, repairs etc...
I deal with both type of investments and I can assist you with your search.
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I understand the premise of higher capital appreciation, but the question is - how strong is the off-plan resale market?
Everyone with a bit of brain is looking for pre-launch opportunities, and in the case of any shake in the market, this segment is first to suffer.
I'm new to Dubai market, but my sense tells me that the only 'safe' exit route for off-plan resale is to leave enough juice in as an incentive for a new buyer.
Since it looks like the Dubai property market is at the moment dominated and driven by investors rather than end users, leaving some juice in by selling low seems like the safest way to get it moving fast.
The profits are not depending only on the appreciation, they are equally depending at the timeline of the investment.
If my judgement is right (and I'm requesting all the experts to correct me if I'm wrong), then the most important question here would be how much below the 'market value' you would need to sell your off-plans to shift it quickly, and compare that realistic capital appreciation with the profits generated from solid buy to let investment that is already up and running. Also, the risk factor is significantly different.
I appreciate your point about the project management, tenants etc. I would also really appreciate if you could help me understand the situation in Dubai in that regard. Are there laws helping you with non-paying tenants? How good are the project management companies?
Thank you.