Investment advisory
Any agent can tell you a property is a great investment. That costs them nothing. Here are the six things we check on every place before we would put it in front of you.
Gross yield is the number every listing quotes. We work to net: rent achieved in that building, less service charges at the current rate per square foot, management, maintenance and a realistic vacancy allowance.
The 4% DLD transfer fee, agency fee, trustee and registration costs and any mortgage arrangement fee all sit on top of the price. On a financed purchase they typically add six to seven percent of value in cash.
The most common way a Dubai rental case fails is competing stock handing over nearby within eighteen months. We check what is under construction in the same catchment before, not after.
How many comparable units traded in that building in the last twelve months, and at what spread. An asset you cannot exit at a predictable price is not a position, it is a commitment.
For off-plan, the question is handover history and specification actually delivered on previous phases — not the render.
We model the repayment against net rent rather than against the maximum a bank will approve, and show the position at 50%, 60% and 70% LTV so the sensitivity is visible.
What you receive
We show every number we started from — the price, the rent we assumed, the yearly charges, the loan, and how many weeks empty — before we show you the answer. That way you can argue with a figure instead of taking our word for it. If we do not know something, we say so.
We will also tell you when the answer is no. Talking you out of the wrong place is worth more to us than the fee, and it is usually the most useful conversation we have with someone new.
We prepare this for you, using the assumptions we list. It is not a promise of what you will earn, not a valuation, and not financial advice. How an area did before is no guide to how it will do next.
Either works. Send a listing you are considering and we will tell you what we think of it, or tell us the amount and the objective and we will come back with a shortlist.