How to determine the right time to buy real estate property

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Making a real estate investment in Dubai is always an interesting decision to make. It’s no good buying a real estate property when there is a recession in progress, and it’s not a good time to buy when the economy is booming and the cost of commercial properties is going sky-high. Buying a real estate property at ‘just the right time’ maximizes profitability and capital gains and seems to be at the cusp of a rise. 

The question is, how do you know where this cusp is?

How do you know where this cusp actually happens often depends on experience, judgement, and good business information. To get this experience will cost you one way or another but if you do your learning right, it won’t break the bank and you will make enough incrementally to keep investing and gaining the buying experience as you increase your real estate investment portfolio.

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It will always be a great help if you have a good business network in your area of interest so you have local information about what is planned for your area. Once you know that a development is being considered or talked about, you are in a better position to be an early beneficiary of the project. This does not mean you ever get involved in insider trading or anything illegal but with a bit of imagination, you will be able to ‘see’ spin-offs from any new development and position yourself.

It’s not a good time to buy real estate property during a downturn in the economy or in a recession because not many people want to start a business when the economy is bad. Getting a good rent-paying tenant is too risky a business if they may have trouble making enough money to pay the rent. If it is a start-up business, then the risks are even higher.

On the other hand, it can also be the best time to pick up real estate properties in Dubai at basement level fire-sale prices. This works well if you have a considerable percentage invested in the property and whatever money you borrow against it will not leave too big a dent in the bank account if you don’t get a rent-paying tenant immediately. Buying at a time when there is plenty of properties on the market can give you a lot of leverage and you could pick up an excellent deal.

Is it the right time to buy real estate property in Dubai? The answer to this depends on trusting your commercial real estate company advisor if you have one, and if you don’t have one then you can try online by visiting www.constructioninuae.com and find out all details about real estate properties in Dubai.

Personally, I wouldn’t be venturing into a highly leveraged commercial property right now simply because the world is not yet far enough away from financial catastrophe for my liking; but I’m one of these people who like to be embedded in a rock face, surrounded by a wide moat with a very heavy drawbridge across.