How much should I earn if I want to invest in an apartment in Dubai?
Your earnings will depend on a number of factors. One being your purchase price, the other being your rental income. You have to calculate how much cash you have put into the property (this will be less if you get a mortgage) and then how much you will pay on your service charges per year and offset this against your rental income.
A ‘good yield’ will vary from month to month. In some markets you can get up to a 10 per cent yield (short-term rentals especially) whereas some units could be as low as four per cent. A good yield in Dubai today in key areas would be five per cent to six per cent.
I bought a three-bed flat for Dh900,000 in 2018 but have got an offer for Dh1.4 million. Should I hold or are prices expected to rise further? I want to move to a community 30km from Downtown Dubai where I now reside.
Ultimately, the decision to sell or hold on to your property depends on your personal circumstances and goals. If you are satisfied with the offer you have received and feel that it meets your needs, then it may be a good time to sell. On the other hand, if you believe that the property’s value may increase in the future and you are willing to wait, holding on to the property could be a viable option.
In my opinion, the offer seems to be a profitable one, unless the building you currently reside in Downtown has the potential to increase in value even further. However, it’s important to consider the risk posed by the influx of new developments that may cause older properties to decrease in value, such as Burj Royale, Burj crown, Forte and others. All things considered, I believe this is a very good offer, and the owner should seriously consider accepting it.
Rosie Patterson is mortgage channel manager at Betterhomes. Karalina Charnashei is senior sales consultant at Betterhomes. Views expressed are their own and do not reflect the newspaper’s policy.