Singing Pig

Hey all,

 Can you believe I only discovered this forum tonight? Trawling the internet during night shift! Ok I'll try and keep this short(ish) and to the point(ish).

About me:

I'm 20, lucky enough to be earning above average national wage, but with no money saved (I mention only because that'll be of interest to potential partners). Currently living at home, which I intend to do for several more years. No credit cards, small overdraft (£500), and <£400 standing orders / debits per month, including car. My only loan is one year of a student loan that I'm repaying atm.

My aims:

I'm looking to invest abroad; specifically, Dubai. A multitude of reasons, not least the current and projected growth, and relative bargain basement pricing in some developments. I'd like to find a partner, for many reasons. To talk over ideas, find potential investments, and perhaps invest together. I live in Belfast, so close proximity to the city would be a real bonus.

I hope this post doesn't offend; this site has so much info! Am I being daft, or is there no search function, though? It could be this screwy internet, it's been mucking about with different forums over the last few days.

Hi Bornfishy!

Welcome to the forum. You remind me of me when I was 20! When I decided to get into property. Dubai attracted me for all of the reasons you mentioned. I have also been there a few times.

It is very cheap I was looking at International City (35k for a 1 bed). I even met with the agents and was about to put my deposit down. Then an older investor/mentor told me to forget it. Just like that he said categorically "don't do it"

With hindsight. I went in relatively blind and believing all the hype about Dubai. That is IMO what it is. HYPE. There is so much development in Dubai and alot of it has been sold to speculative investors. There is going to be a huge oversupply of property once its all constructed.

I have not regretted my decision, because the agents are still selling at International City.

Why not get something here, buy BMV and you dont have to put your own money in (apart from costs etc).

Theres plenty of opportunity here, plenty of cake, you just have to look.

Also consider if you do get something in Dubai. You will probably have to make a few trips there to furnish/let the place. Then even if you do give it to an agent to rent. Do you know the legal process there about eviction etc. Also there is still no firm Freehold title in Dubai and this might happen but thats not really good enough.

Much better to stick to a well regulated proven market like the UK. Dont be put off by the high prices, Read the BMV section on the forum and you will see how you can start for relatively low money. 

Good luck!

Jai 

I agree with Jairaj

People making the real money in Dubai are the landowners, developers, agents ie everyone on the value chain apart from end-user mug.(no offence intended to dubai investors)

Why would you tie up money in an overdeveloped city with speculative capital appreciation when you can find safer deals in the UK which dont require any money?

I think the answer is probably that everyone has different investment criteria due to different levels of knowledge and risk thresholds.

Generally speaking, considering your age and financial position, look at increasing your positive cashflows. With places abroad you will not really see a return for a couple of years or so.

Once you have built up strong positive cashflows (using whatever routes, doesn't have to be property), you can then look at investing for growth - i.e. tie up the capital.

I think you'll find you can afford to buy here. Seriously. There are places in the UK (I've personally looked at Scotland) to buy for under £100k with easily over 10% rental yields.

If I was able to buy at 18 using my student loan and 0% student overdrafts as deposits, you can too! Research and stick at it.

Jairaj you made a mistake not buying a 1 bed at £35k as there worth over £65k! thats a 100% growth you also mentioned there still selling them? well yes on the resale market and they also built 21,00 units (i used to sell these apartments)

 one more aspect DUBAI IS TAX FREE