We've also heard media victims say that we shouldn't trust anything we see on the internet. I can't emphasise how valid this is enough. The media has a tendency to embellish news in order to attract readers, because let's face it, everybody enjoys a decent controversy or a fantastic new gadget. Off Plan Properties in Dubai
management firms have seen a sharp drop in revenue as a result of the crisis, but some firms have seen a sharp increase in business. Finding a healthy, honest firm in which to do business takes considerable time and effort, but it should be known that some businesses would badmouth others for the sake of business. These are difficult times, and certain people get desperate, which can only reflect negatively on themselves in the end.
It's too good to be real if it's below market value.
Many of these specialist businesses who work in buildings that are below market value buy in bulk from individuals that can't afford to finish the projects and need a way out, or from local governments that just want projects off their hands due to budget cuts and the crisis. They will also be able to purchase foreclosed assets from the bank and get a discount if they purchase many at once.
There are a few businesses that have thrived through the recession, particularly if they are cash-rich. There is too much leverage involved when a business loans to acquire these types of assets, particularly if the lender then lends to buy off the developer.
Just because it says below market value on the tin doesn't mean you'll make money right away. What you do get, though, is immediate equity. In the long run, this will equate to gains, but the state of the economy determines this. As a consequence, if you purchased a house at maximum market value at a given moment, bear in mind that you will almost probably lose money if the market deteriorates. For example, if you acquired a property for £100,000 and the economy has depleted and the house value fell after a year, your home could be worth just £90,000, resulting in a loss of £10,000. Under the same way, if you owned a home for £65,000 below market value so it was worth £100,000 upon sale, and if the market fell, you'd only be in £25K of equity instead of losing £10,000.
If you're looking for a fast buy-to-sell house, below market value is definitely not for you, as the best prices are always available on off-plan properties. Obviously, there is a period of time between the time of reservation and the completion of the construction. With talk of the property market drying up and devaluing, it's important to note that when it comes to property investing, place is everything. Locations in the city centre would be extremely beneficial, particularly if there are other improvements taking place in the city.
Emerging economies are a sure bet for a benefit boost.
Just note to do your due diligence on suspected emerging markets before you believe everything you hear. After all, we're still in a downturn. I'm sure you've heard a lot about Greece recently, and Dubai isn't getting the reaction they expected from their latest inventions now that the excitement has worn off.
The majority of assumptions made about emerging markets are purely speculative, particularly by promoters who, to be fair, make very compelling arguments. This isn't to say that there isn't capital to be gained from purchasing land early in an area with a high growth outlook. In the past, the styles of investors who have profited from this have sold their property to well-known developers. Failures, on the other hand, are less well known, making it more difficult to do your homework on an emerging market argument.
It is also much easier to invest in more prosperous areas, such as towns in more economically competitive locations, such as Manchester and Liverpool, where there is still substantial growth and a large population.
This are just a few of the many misconceptions that plague the real estate investing industry. Before you plan to Dubai Investment Real Estate
, make sure you research any misconceptions you've learned and don't just focus on them so you could lose money in the long run.