The question is valid, the answer I’m going to give you is strange. My answer is yes but it depends – the yes is only if you’ve got the cash to lose.
Let’s take the example of going to a casino and gambling at the roulette table. You put some money down and the Croupier spins the wheel, 1 in 38 chances you’re going to make 36 times your investment.
I’m not saying that Dubai is the only roulette table, I’m saying that buying off-plan property anywhere in the world is a gamble because you don’t know what the outcome is going to be, and that is the definition of a gamble.
Investors don’t call it gambling, they call it speculation
What this means is that when you buy an off-plan property, you’re hoping and praying that upon delivery the price will be higher than what you paid for it. Will the ball land on the number I’ve chosen on the roulette table? Absolute speculation.
Now there’s nothing wrong with gambling, speculation or investing in off-plan property providing you can afford to lose the money. Roulette is a popular game because if you get lucky you can make a lot of money. The same goes with real estate, you can get lucky, but luck in real estate means that the sale price is higher than what you bought it for.
There is no guarantee of profit when you invest in off-plan property and as we know the market goes up and down all the time. We have a rough idea from looking at market trends but who really knows where we are on that curve.
Nobody can predict the future.
If you’re buying off-plan property understand you’re speculating. There is no guarantee that the property is delivered with its value higher than what you bought it for. If you’ve purchased at the wrong time, you’re going to have to wait for the value to go up which means there may be a significant delay in seeing a return on your investment.
My advice to you is that if you’ve got spare cash that you don’t know what to do with and you’re happy to speculate in the market then investing in off-plan property in Dubai is a brilliant idea. For most people it’s a big no-no, if you don’t have the money to invest in 10 properties then do not buy one property off-plan.
Look for existing deals
There are better deals in Dubai that you can buy right now, that are good deals right now, that are going to make you money right now. Don’t buy something and then wait for your investment to pay off – when you invest, make money when you buy.
From the day that you purchase, you should be making money, both in terms of the value of what you bought, let’s say you bought it for 1,000,000AED and its market worth 1,500,000AED, and in terms of continuous profit – you’re looking to make money on a monthly basis.
These are the better deals, and most people should be doing those deals rather than gambling, speculating or investing off-plan.