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Featured below are 7 guidelines from Gowealthy.com for safe and secure property investments in Dubai.
Look before you leap...
All your investment decisions should rest on sound research into the area, location and pricing. Location is one of the key factors influencing prices of your investments and possible rental returns. The knowledge you glean would go a long way in furthering your prospects as an investor. Weigh the potential of the locality. Envision how the area will look once the development is complete; study nearby developments (if any) and ask yourself how the area would be transformed in 10-15 years.
To avoid buying an investment that could potentially run at a loss, make certain that there is a real demand for rental property in your chosen area. Research the market well and choose an area where rental demand outstrips supply.
To formulate a strategy, look up online portals for information about location, property prices and plans. It is easy to conduct your own accurate research and market analysis. By observing the prices over the last 4 months, you can determine whether the market is stable or not.
Adopt a clinical approach...
Numbers and figures should be uppermost in your mind while investing in property. Unless you are buying for personal use, don't let emotions get the better of you. Always approach agents registered agents and qualified property consultants approved by Dubai Land Department. Our studies reveal that some 4210 unlicensed agents are operating within Dubai...Be forewarned!
Is the foundation solid?
| Innovative architecture in Dubai contd.. |
 The Universe
• Artificial islands in the shape of the solar system
• Located between Palm Jumeirah, The World, Jumeirah Coast & Palm Deira
• The Universe will occupy 3,000 hectares of land |
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 Dynamic Tower
• World's 1st rotating building, an 80-storey tower with revolving floors
• Designed by the Italian Architect, David Fisher
• Comprises 80 pre-fabricated apartments that will spin independently of one another
• 79 giant power-generating wind turbines between each floor
• 1st skyscraper to be built entirely from parts custom-made in a workshop, known as the Fisher Method
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 Dubai Mall
• Largest mall in the world in Downtown Burj Dubai
• Spread over a massive area of 12.1 million sq ft
• 1,200 retail outlets, 2 anchor department stores, 120 food & beverage outlets and 14,000 parking bays
• World’s largest indoor Gold Souk with 220 stores
• The Aquarium with largest viewing panel measuring 32mX8m & Discovery Centre
• Indoor Olympic-size Ice Rink
• Exclusive access to Burj Dubai
• The Grove, an indoor-outdoor streetscape with retractable roof
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 Al Maktoum International Airport
• Located in Dubai World Central in Jebel Ali
• World’s largest passenger & cargo hub
• 10 times the combined size of Dubai International Airport & Cargo Village
• Capacity to handle over 12 million tones of cargo & more than 120 million passengers annually
• Capable of handling technically advanced aircrafts including A380
• 6 parallel runways & concourses
• 91-m high freestanding ATC tower in the Middle East
• 3 passenger terminals including 2 luxury facilities – one dedicated to Emirates, one to other carriers and one to low cost carriers
• Regional maintenance hub capable of all checks for all types of aircrafts including A380
• Linked with Dubai International Airport via express rail system serviced by Dubai Metro
• Car parking spaces for 100,000 cars
• The first runway completed in projected 600 days, an aviation record for the fastest A380 enabled 4.5 km CAT III runway construction
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Always check whether the developer/builder has solid track record. You may stand to lose in a big way if the developer of your property incurs financial difficulties midway through the project. Always check the developer's credentials, compare notes with previous customers for their experiences and assess previous completed developments by the developer.
It's business all the way...
Treat your investments as business deals. All details pertaining to your investment - Banking, Maintenance, Deeds and Records from Land Department, including bills and receipts, should be managed and recorded accurately and without fail. Being meticulous has its rewards. As in any business, act smart and strike up lasting relationships with your property developer, mortgage provider and real estate agents.
Accountability
Although Dubai is yet to implement Property Index to regulate pricing, investments are more or less secure. All developmental activities in Dubai are monitored by master developers like Emaar, Dubai Holding and Nakheel, which in turn are government-backed. It was primarily to safeguard investor funds against malpractices that the Government of Dubai issued the Escrow Account in late 2007.
Before investing, please check records and ascertain whether the development has Escrow Account with an approved banker within Dubai. Do read the purchase agreement carefully before making the initial payment. Also, ensure that the contract is signed and delivered by the developer within the specified period.
A stitch in time saves nine...
Always seek mortgages from financiers approved by Dubai Land Department. You may either choose a regular mortgage plan by financiers like Tamweel and Amlak or, go in for developer-sponsored financing. Check out the interest rates (fixed or flexible), penalty clauses and service charges, as those tend to vary from firm to firm.
Age flexibility is quite possible if you opt for developer-backed financing.
Widen that safety-net ...
This is a tricky issue...It all boils down to your investment strategy...whether you are playing for high or low risks...If you are a first-time investor, unsure of market trends, approach an authorized property agent. Keep your margins low...so that if anything untoward happens, you have a safety-net to fall back on. The rewards may not be eye-popping; but your investment is sure to rake in solid returns.
In case you are buying completed properties, go in for those where rental income covers repayment mortgage or those with realistic payment installments. Use rental income to pay off the mortgage.
Demand for rental properties is on the rise in Dubai. Buying a small apartment to rent out can be a good way to accumulate funds so you can eventually buy your own place in an area where you want to live. Or, if you don't aspire for direct investment in property, pool your resources with other investors in managed property funds, that involve commercial, industrial, residential and retail investments.
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