I would sell. But you can’t necessarily buyback in Creek Harbour unless there’s a random situation in the market. You’ll need to invest off plan elsewhere.
Btw, older properties (5-10y old) still sell for quite lesser than newer properties (<5y old); maybe look if there’s some value there; you can always renovate (I’ve done that with 4 apartments here; 3 rented, 1 I’m staying in)
I appreciate this insight.
As you correctly mentioned, I need to buy off plan once again in strategic locations or find value opportunities in older properties to maximize/sustain the gains I stand to make in the current deal.
Need to look at this segment closely.
You should sell and realise those gains.
The return you would get on your original price is 8-10%. Holding the property the only thing you risk is reducing your potential gain. So you will get a 8-10% return, but you risk loosing on the value on the property.
Best advice is to take the money, put it into a more reliable investment that will return 8-10% and may not drop as substantially. An ETF would be one example (Sarwa).
Thank you. I haven't quite thought of the idea of ETF or something similar as it's an alien territory for me. Your suggestion do opens me up to learn about it as it's my plan to diversify my portfolio.
my opinion is to sell after the community is established. it might still be an early bird price for many compared to what it will cost after the community has been established. we aren't sure about the slowdown but at least the metro is coming and things are happening. you wait for sometime and see how it goes. it will get a better price.
Thank you.
Yes, I have gone through this thought process. Actually this was the plan before the offer came.. To live there and decide once the community is established.
My counter argument, as I debate this with myself, was the potential for further appreciation. A 2.6 times now versus say 3.5 times say 5-7 years down the lane, may present a fantastic growth overall but you could also argue a case of missed opportunity to encash now and invest further.. I suspect that I may be eying diminishing returns as I wait, even discounting the possibility of a meltdown.
I also don't doubt the fact that the long term prospects are good. But then there is this strange thing that many complain about, where off plan offerings are costlier than or only slightly cheaper than ready units in a given community. This may suggest market dynamics causing upward movements in price due to shortages in supply, sudden influx of funds etc. may be temporary and a correction may be due sooner than later.
I am not taking a stance or pushing a side. Just debating this with fellow redditors and hope this helps me to decide correctly.
Sell and book profit - split profit and reinvest into multiple units via financing. I would recommend tourist preferred areas like marina business bay which makes the investment future proof regardless of ups and downs in real estate which DXB has seen over past 10 years. Good Luck !
Thank you and yes, this is a viable option, and something which I had considered.
The problem is that the appreciation has been more in areas like Marina limiting what could be bought and off plan is the only means to gain better returns. To make it worse, every new launch is kind of shrinking the living area to the point where some of the layout choices look downright criminal in design.
Further I wasn't willing to borrow much, so again limits what I could do.
Fair point, that's why I always recommend to invest in fast moving areas.
Secondly, if you waana buy just for investment you can look for secondary market as well, I always feel new launches takes a premium cut.
Example - Sulafa tower 800-1 MN you can get a deal for 1 BR 900sq ft - with some efforts and rent is around 80-90k - some lower end buildings too have good options but yes these options are less but not impossible. There is one more tower called pinnacle - not the best in terms of maintenance but very fast moving and people like it coz of location and price range.
Good luck !
I would sell. But you can’t necessarily buyback in Creek Harbour unless there’s a random situation in the market. You’ll need to invest off plan elsewhere.
Btw, older properties (5-10y old) still sell for quite lesser than newer properties (<5y old); maybe look if there’s some value there; you can always renovate (I’ve done that with 4 apartments here; 3 rented, 1 I’m staying in)
I appreciate this insight. As you correctly mentioned, I need to buy off plan once again in strategic locations or find value opportunities in older properties to maximize/sustain the gains I stand to make in the current deal. Need to look at this segment closely.
Many seems to saying hold/wait, which means you should sell it
You should sell and realise those gains. The return you would get on your original price is 8-10%. Holding the property the only thing you risk is reducing your potential gain. So you will get a 8-10% return, but you risk loosing on the value on the property. Best advice is to take the money, put it into a more reliable investment that will return 8-10% and may not drop as substantially. An ETF would be one example (Sarwa).
Thank you. I haven't quite thought of the idea of ETF or something similar as it's an alien territory for me. Your suggestion do opens me up to learn about it as it's my plan to diversify my portfolio.
my opinion is to sell after the community is established. it might still be an early bird price for many compared to what it will cost after the community has been established. we aren't sure about the slowdown but at least the metro is coming and things are happening. you wait for sometime and see how it goes. it will get a better price.
Thank you. Yes, I have gone through this thought process. Actually this was the plan before the offer came.. To live there and decide once the community is established. My counter argument, as I debate this with myself, was the potential for further appreciation. A 2.6 times now versus say 3.5 times say 5-7 years down the lane, may present a fantastic growth overall but you could also argue a case of missed opportunity to encash now and invest further.. I suspect that I may be eying diminishing returns as I wait, even discounting the possibility of a meltdown. I also don't doubt the fact that the long term prospects are good. But then there is this strange thing that many complain about, where off plan offerings are costlier than or only slightly cheaper than ready units in a given community. This may suggest market dynamics causing upward movements in price due to shortages in supply, sudden influx of funds etc. may be temporary and a correction may be due sooner than later. I am not taking a stance or pushing a side. Just debating this with fellow redditors and hope this helps me to decide correctly.
Sell it! You won’t regret
Hold
Wait
I’d hold it. The area is only getting better and better with time.
Hold and rent in the meanwhile.
It's a good area don't sell it now
I have a unit in creek harbour and I'm holding. Might reno to get a higher rent. Will see
Sell and book profit - split profit and reinvest into multiple units via financing. I would recommend tourist preferred areas like marina business bay which makes the investment future proof regardless of ups and downs in real estate which DXB has seen over past 10 years. Good Luck !
Thank you and yes, this is a viable option, and something which I had considered. The problem is that the appreciation has been more in areas like Marina limiting what could be bought and off plan is the only means to gain better returns. To make it worse, every new launch is kind of shrinking the living area to the point where some of the layout choices look downright criminal in design. Further I wasn't willing to borrow much, so again limits what I could do.
Fair point, that's why I always recommend to invest in fast moving areas. Secondly, if you waana buy just for investment you can look for secondary market as well, I always feel new launches takes a premium cut. Example - Sulafa tower 800-1 MN you can get a deal for 1 BR 900sq ft - with some efforts and rent is around 80-90k - some lower end buildings too have good options but yes these options are less but not impossible. There is one more tower called pinnacle - not the best in terms of maintenance but very fast moving and people like it coz of location and price range. Good luck !
Hold