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Dear Friends,

I wanna buy a 1 or 2 bedrooms apartment and then let it but as long as I am not a local, I don't know where is a good place to buy and easy to let.

Will you be kind enough to give me some advice, I really don't trust real state agancies.

Cheers,
Shahin

Perhaps Dubai Marina? It is a really nice area and close to Media City, Internet City and Knowledge Village, as well as Jebel Ali - so there should be many people interested in renting in that location.

Totally disagree, 1 million will get you 1 decent apartment in the Marina or 4 Studios in International City. The problem with investing here is everyone is going for high end housing but most of the people here aren't high end wage earners, gone are the days of guaranteed/generous housing allowances and median disposable income is rapidly decreasing. You want to make money the Fayz way, market towards middle class and not high end. a 1 million apartment in the marina realistically will get you 80-100k per year (although a caveat for short term renters). 4 Studios at 35k will net you 140,000 a year.

Do the math.

This is my humble opinion anyway, to each their own, good luck in whatever you decide. I think I would search some of the other threads on this board before jumping into property right now anyway.

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fayz wrote:This is my humble opinion anyway, to each their own, good luck in whatever you decide. I think I would search some of the other threads on this board before jumping into property right now anyway.

Probably the best point made so far.

You can get 1 bdrms in Dubai Marina for 600-700k dhs but not ready yet. You pay a significant premium now for completed apartments. As a location I'd rate it better than most other places.

My number 2 choice would be either good value apartment in Jumeirah Lakes (but I don't see any) or Discovery Gardens studio (except I believe there's no underground parking - I think that's a significant minus).

250k dhs for an International City studio looks attractive on paper but I think 35k for a studio may be optimistic especially by the time they're ready. Location will appeal to all those currently commuting from Sharjah. I think a 1 bdrm may be a more sensible option - they always seem to be more in demand than anything else.

Better Homes, Cluttons, Asteco, Landmark are agents that are probably ok.

good points Sharewadi, I think International city isn't that far though, it takes me about the same amount of time to get to dragon mart as it does to an apartment in the marina from SZR, i think more and more people will find this area of interest for its low costs and rents will be more stable there, similar to what happened in Mirdiff 18 months ago, they are undervalued right now because of lack of interest, is my opinion.

Having said all of that, i wouldn't touch any place with a 10 foot pole for at least another year.

More importantly what do you feel about today's trading day?? tomorrow should be a gap up at open but after that i'm not sure.

It's not the distance that puts me off International City - I agree the travel time is probably the same, and IC apts do seem like good value. It's the fact there's limited coastline (making DM more appealing) but plenty of desert to keep building in. And walking around DM now there seems to be a bit of life especially weekends and evenings.

As for the markets, yes well, always easier with hindsight but pretty much as you thought - it went up, then didn't know what it was doing, then fell down again. Big volumes though. As for yesterday, yes, the haemorrhaging continues.

good points, I do like the Marina at least i will once the construction stops but they do have some nice outdoor areas and the friday market, it has a nice feel to it.

As for the markets, I did an overnight hold from bought yesterday and sold this morning for 8% but yeah, I really wish you could short in this market. They are starting to allow shorts in other Middle East markets though so who knows what'll happen.

I agree and disagree with both of you

Fayz has a valid point in terms of "long term investment". But i disagree in terms of his client group.

In considering the "long term" rental potential, i think one has to anaylise who will be renting in the mid to low end of the market.

In long term and i mean upto and beyond 2015. The market will shift substantially towards the "holiday let". This will make position paramount. The high end market will always remain, as will the housing allowances for those seeking the higher end.

Fayz, if you wanted to consider an "outside bet", i would think seriously about Dubailand.

In Paris and North America for example take Disney. The infrastructure built around these "parks" have brought massive returns for those who need and want to be near the "action". Florida in particular has a massive rental market to mainly tourists, who cannot afford the artificially high and captured "hotels".

The same would apply to JBR, being the only single development with a beach access and beach clubs. ( but we have already discussed in depth the current JBR price situation).

This in my humble opinion makes a wise and spread property portfolio. I would urge against putting all your eggs into one basket Fayz.

It is encourageing that many of us incl Sharewadi agree, the time is not right to start this process. Yup, we could all be wrong, but thats markets for you. If we all held the answers, we would all be billionaires.

I definately agree with sharewadi regarding thinking seriously about looking at 1 beds as opposed to studios.

We havent even touched on the Palm developments yet. Of this i am still not sure. The huge maintenance costs and the resulting "managemaent charges" worry me.

some interesting points arn. definatly a lot to chew on

Hi All

I recommend you go for a 1 BEDROOM in the GREENS. The most sound investment at the moment in dubai. HIGHLY IN DEMAND BY RENTERS. The Greens is near enough opposite Dubai Marina. Very close to Media & Internet City, Jebel Ali Free Zone, beech, mostly all the important areas within Dubai are close to the Greens. The Greens is a completed area and has been trialled and tested for some time now and as the months have gone by it has and is becoming one of the most successful area in terms of investment returns.
The location is great for bachelors and family life with beutiful design buidlings and all ammenties near by. A nice little shoppng area to go with it.

Its is highly in demand by renters and attracts most europeans and americans.

PRICE GUIDE: Around 790,000AED - 850,000AED
RENT GUIDE: Around 75,000AED/Year - 90,000AED/Year
9-11% RENT RETURNS of the property value annually.

SO THEREFORE: if you were to buy one of these apartments 1 bedroom in the Greens it can easily be rented out. Put a downpayment of about 20-30% downpayment and finance the rest.
The monthly finance payment would probably be less then 5,000AED/Month. IF RENTED OUT MINIMUM MONTHLY return would be around 6250AED/MONTH based on a annual rent of 75,000AED.
The apartment can be fully PAID OFF with 10 years. Is this not GREATTT.

If you furnish it and rented on a monthly basis a minimum of about 10,000AED/MONTH can be achieved.

In the past 2 years the price of these apartments has increased a LOT. Do not forget also that within a year or by the end of 2006, I personally think a one bedroom if bought now, will fetch you around 900,000 - 920,000AED if bought now for around 800,000AED.

Thanks for reading my post. Anything that may be or sound untrue then please let me know. If any mistakes I am sorry for that also. But this info is from the best of my knowledge.

Iftikhar Ali wrote:In the past 2 years the price of these apartments has increased a LOT.

That's what would scare me about buying a Greens apartment now.

Mmmmm, it really depends on how you look at it. If the prices have been increasing then this is a good sign indicating the strengths of that area. I think the price will never fall because, the greens has been trialled and tested and due to this reason this area is in more and more demand then ever before. Also if the prices fall then this will bring a lot of prices down in the surrounding area therefore I do not think this is going to be allowed unless the whole of Dubai prices go downhill.
The main point why I said greens is because this thread started with emphasis on renting out the apartment.
Sure there are plenty of places within Dubai a person can invest into. But are they all safe investments? I also may add that when an area has built up its reputation and becomes well known for all the good reasons this will always remain and attract investors accordingly.

Also other developments like International city, jumeirah lake towers, dubai marina..... are also very good investments but a lot of these areas are in development.

THANKS for the remark by the way SHAREWADI.

Iftikhar Ali wrote:I also may add that when an area has built up its reputation and becomes well known for all the good reasons this will always remain and attract investors accordingly.

True, I guess that explains the premium on Greens apartments.