The Cube Sports City - Good investment? Anyone interested in Co-invest

[papakilo]

Anyone have thoughts on The Cube in Sports City as an pure investment?
Looks like an interesting business model and risk spread across the whole hotel - they say every owner gets the same returns. Any thoughts would be welcome.

[Roshan]

Originally Posted by papakilo

Anyone have thoughts on The Cube in Sports City as an pure investment?
Looks like an interesting business model and risk spread across the whole hotel - they say every owner gets the same returns. Any thoughts would be welcome.

The cube is an interesting model as you put it. This looks to be a good investment, but was all sold out the last I heard of it.

How much are you paying for it is the question.

The developer is German and this model should work in sports city. Keep us informed of the developments.

Regards

Rosan

[papakilo]

Rosan,
thanks for your thoughts.
Not sure what your background is, but would you suggest any better investment opportunities.

[Roshan]

Originally Posted by papakilo

Rosan,
thanks for your thoughts.
Not sure what your background is, but would you suggest any better investment opportunities.

Each investor has a particular model. Some investors would like to enter flip and exit making money or at times loose also.

My model is cash flow, which means renting out once ready. A lot of research is involved in real estate investing. It begins with evaluating a project which interests you.

With the help of a mortgage calclator ( google to get one ) you enter all the requested parameters which are easy to understand and enter. Then you see what your monthly EMI's work out to. If your rental should be more than the EMI's ( at times mind you not ), then you are on positive cash flow and have money coming in instead of going out.

I would like money to come in every month and supplement my income to a stage where I do not depend on my job.

Read the book " Rich Dad - Poor Dad" by Robery Kiyosaki. It will change the way you think about real estate and investing.

Studios & 1 bedrooms tend to rent out easily. Most investors start with these kind of projects.

If you have enough money to back you, then you could look at commercial space.

It's never late to invest in real estate. The best time to invest as all say is "NOW".

My suggestion is to take up a real estate course whichteaches you how to invest and gives you the confidence. That's how I started and since then I have never looked back.

Regards

Roshan

[dpc]

Hi, I have invested in the Cube and bought about 8 months ago. The Cube is not sold out. In phase I they release floors 1-11, and in the second round of sales floors 12-23 were released. They have another round of sales in the future to finish off the building. The Cube is in my opinion, one of the best projects out in Dubai for rental returns. I spoke to the project manager at the Cube and they have absolutely no funding problems so they are phasing the sales so they benefit from the appreciating value. They have already increased the price several times and resales are aplenty for those who have made a profit and want to flip their Cube properties. The price will continue to go up.

The Cube sold itself offering 10%+ returns. They do a 50-50% split of the room night with the owners (split according to the proportion of the square foot of the hotel that you own). Essentially, if your room gets £100 (AED ~750) a night, you will get £50. Occupancy, given Dubai's 5 star hotel occupancy this year, will be 90%. The Cube's original figures were based on 70% occupancy at £100 for the smaller suites. However, the likelyhood is that it will see 90% at nearly £200 based on current rates. This means that returns will be nearly 30% (with around 3% maintenance costs) per year. I would also expect the room rate to increase by the year as Sports City completes and becomes one of Dubai's main attractions.

From my conversations with the Cube's project manager, they are also tying up with major sports brands such as Germany's biggest football club Bayern Munich ( a huge name in European sports) within the next couple of months.
I own a Dubai property investment and sales company and I believe this to be one of the strongest investments in Dubai (despite recent price increases). I will be happy to offer any property consultancy and of course any sales of Dubai properties.

[papakilo]

Thanks DPC.
Is anyone out there interested in co-investing in THE CUBE.
I want to buy but can't afford the whole thing and don't really want to go down the mortgage route.
Let me know.

[dpc]

Hi Papakilo,

Unfortunately there aren't any mortgages on the Cube. There was talk of HSBC doing it but this didn't materialise. For some reason, there is no finance for sports city. This is really a bit of ridiculous situation by the Dubai Banks - all the developers and property people I talk to in Dubai can't understand why Banks don't finance it as it fully meets all the legal requirements and is a huge project.

If you are interested I can possibly find you a co-buyer from our network. Are you looking for a 50-50 split? Are you looking to flip or hold long term? I imagine you will have to split the owners usage to 15 days each.

The Cube is available from 800,000 AED for a studio for resales(which is cheaper than the developer's price for the same unit types). They have started construction and they are confident of July 2009 completion - last time I spoke to them.

[papakilo]

DPC,
not having any mortgages available for Sports City is a little concerning?
Basically this suggests the banks see this as greater risk than other areas?
ALso why would their be resales if it's such a good deal?
Where do you find the resales anyway?

In terms of the co-investing I know a few other that are interested as well so together maybe worth a shot.

What is your background by the way? Is this your full time job or just a hobby? I ask as you mentioned your network?
Papakilo

[Roshan]

Originally Posted by papakilo

Thanks DPC.
Is anyone out there interested in co-investing in THE CUBE.
I want to buy but can't afford the whole thing and don't really want to go down the mortgage route.
Let me know.

WOW a good decision. I have friends of mine who followed the same idea and co invested 5 properties. They have done well for themselves.

However your co investor should have the same outlook as yours and should not want to sell when you want to keep. You all have th have the same mind sync.

Regards

Roshan

[Roshan]

Originally Posted by papakilo

DPC,
not having any mortgages available for Sports City is a little concerning?
Basically this suggests the banks see this as greater risk than other areas?
ALso why would their be resales if it's such a good deal?
Where do you find the resales anyway?

In terms of the co-investing I know a few other that are interested as well so together maybe worth a shot.

What is your background by the way? Is this your full time job or just a hobby? I ask as you mentioned your network?
Papakilo

Falak has 90% fnance by Amlak.

Regards

Roshan