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Secret to wealth creation

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves”
– Peter Lynch
If you can afford to invest in real estate, any time is a good time. Timing the market is practically impossible. What do we mean by “timing the market”? Simply, waiting for the ideal and most opportune moment to make an investment. If there’s anything you can learn from the world’s best investors it’s that you can’t time the market.

However, what you can do is protect yourself and your investments by investing in assets that generate regular streams of income. We’re already familiar with the benefits of investing in real estate, such as its ability to generate regular rental income and opportunity for capital gains. However, we also need to acknowledge that like other investment classes, real estate goes through cycles. Typically, real estate tends to appreciate in value over the long-run as illustrated below.

Residential Sales Price Trends

London home prices 1970 till date

Source: Retail Prices Index: long run series: 1947 to 2019 and UK House Price Index: reports

In its short history, Dubai has experienced two cycles and prices are still higher than they were 15 years ago. To put this in perspective, even if capital appreciation seems insignificant due to current market conditions, investors have still earned healthy rental income over the last decade.

Dubai home prices 2004 till date

According to JLL, a global real estate advisory firm, Dubai’s real estate is at or near the bottom of the current cycle. Let’s use an analogy to explain the significance of this event.
If you’re a savvy shopper, you probably look for sales and discounts at your favourite stores before making a purchase. Making an investment is no different – only unlike your new phone, this purchase will make you money. This is how the wealthy invest. They buy at low prices when people panic and sell at high prices when everybody wants to buy.
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Invest in your future

Calculate the amount to see how much your money can grow.

Let's assume you invested USD in a 1 million USD apartment and started earning % annually. You would have earned AED 1,400 compared to simply leaving your money in the bank. Assuming constant returns, if you held your investment for 5 years, the total income earned from rent would amount to USD 7,000. if the price of the property falls. you've still earned a healthy return on your money by simply investing it.

However, if we assume that your investment appreciates % a year. In 5 years the property's value would be worth USD 1,104,080 and your original investment of USD 20,000 would be worth USD 22,081.

Cumulative Earnings

Market Appreciation
Net Dividend yeild payment
Investment amount

*This is for demonstration purposes only. Investment in property and unlisted shares carry risks and you may not receive the anticipated returns and your investments may be at risk

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