Property in Dubai, The Rent Caps Proposed and More

The Dubai Rent Committee has once again regulated the rental rate increases in Dubai resulting in the debate relating to rent caps and buy to let property investment in Dubai seriously raging.

There is the argument that it is necessary to cap rental rates to ensure Dubai remains an appealing place to live in terms of its economic effectiveness for the longer term; whilst on the hand you have property industry experts pointing out the fact that “Dubai’s economy actually benefits significantly from the property industry and by capping rental rates you’re effectively capping the attraction of the nation from an investor’s perspective.”

Those who are in favour of the latest 7% rent cap say that it “will make Dubai a more stable environment for the majority of people living in the emirate.”

“The vast majority of those who have committed to live, work, start a business or invest in Dubai are affected either by home or premises rental rates or perhaps both - when their ongoing rental liabilities are known, these individuals will be able to more effectively forward plan.”

This makes living in the emirate even more attractive as it removes the chance of unforeseen, in terms of costs of living increasing dramatically.

It is a fact that Dubai has to stabilise increases in the cost of living in order to maintain a grip on inflation. Accordingly, a 7% cap on the rate at which rental prices chargeable is viewed as not only a good thing, but essential to maintaining the ongoing attraction of Dubai as a place to live and work.

Directly contradicting this viewpoint is the fact that by capping rental rate increases, you inadvertently cap the attraction of Dubai.

In terms of the buy to let investment property market a cap is quite literally a restriction on profit, and because Dubai’s economy has been bolstered incredibly significantly since the right of foreigners to own freehold real estate in the emirate became law, the economy could now suffer if fewer investors wish to buy property in Dubai and become landlords.

Whichever side of the fence you’re on we feel it’s wise to take a step back from the intense argument that’s raging for just a moment.

By placing restrictions on rental increases, Dubai is actually ensuring it becomes more attractive as a place to commit to, to live in and to open a business or work from, meaning that the current strong flow of inward migration of professional persons that Dubai is experiencing at present will continue and demand for rental accommodation will also continue to be very strong.

This has the effect that vacancy rates for commercial and residential real estate will remain very low indeed and so an investment property bought in Dubai with the sole purpose of the investor being to let it out for an income remains an attractive investment asset simply because it will almost always be occupied and returning an income!

If rental rates were to continue spiralling upwards, more people would leave the emirate than arrive and buy to let investors would likely find it increasingly difficult to find anyone to pay their ridiculous rental rates!

In order to attract more foreign investors into Dubai, Khalid Ahmed bin Sulayem, the Director General of Dubai Tourism and Commerce Marketing (DTCM) revealed: “We want annual visitor numbers to rise from seven million to ten million by 2010. To achieve that, we are working to implement various new initiatives and strategies.”

He further commented that "The next three years will see the most dramatic developments in tourism projects, and Dubai will continue to be a ‘frontrunner’ in attracting visitors to this part of the world.”

This is good news for Dubai as a country and burgeoning economy. Apparent and clear to see is the fact that investing in Dubai – regardless of its rent caps – is still extremely lucrative and a positive venture when one considers the vast amounts of profits to be had in return.

About the Author

Dubai Property Select offers a comprehensive selection of overseas Property in Dubai, news, members club and reviews of the latest property developments.

Related posts:

• Should Your Subordinate Be Smarter Than You?
• Open Your Horizons to the Many Forms of Value
• Be More Successful in Testing Value-Enhancing Business Model Innovations
• Real Estate Content and Article Marketing
• Can Search Engine Submission Service Help Your Simple Work From Home Opportunity?

How to Set and Achieve Your Goals in Real Estate

Ask yourself two questions. Do you have a Will? And do you have written goals for the next one, three, five and ten years? If you answered yes to the first question but no to the second, you are planning more for your death than your life. I challenge you to start setting some goals but remember if a goal isn't in writing, it's simply a conversation. It must be in writing and it must have a deadline. Here are a few guidelines:

Be Specific

Be specific and include details but start rough. This means you want a Mercedes. You don't have to get into color, options, etc. just write it down. Make your list huge. Come back and prioritize and determine what you want in one, three, six and twelve months, then three, five, ten and twenty years. The more goals you have, the happier you will be, the longer you will live, and the more prosperous you will be.

Goals Must be Believable

Your goals must be believable or you will not pay the price. They must be just out of your reach, but know you can reach them, if you really strive to do it.

Goals Must be Measurable

Don't set a goal to be financially independent. You can't measure that. Break it down to the ridiculous. I have learned that successful people set their goals quickly and make adjustments as they go along. Successful people don't vacillate in indecision.


Goals Must be Congruent

Goals must be congruent with your actions. You cannot set a goal to work harder, longer hours AND a goal to spend more time with your family. Those are not congruent.

Visualize What You Want

If you see yourself as already having achieved the goal, you will fake out your mind and it sees the goal as having been achieved. It's called make it till you make it. Take a moment each day and visualize life as it is would be with your goals already accomplished.

Number Your Goals

Number your goals in the order of importance. Not only is the goal important but so is the reason. Sure your want more money, but why do you want money? Whatever it is, the reason must be there. The reason is more important than the goal itself.

Review, Monitor and Make Adjustments

Review, monitor and make adjustments to your goals. You have to be flexible. Some things are not going to happen, you have to face that but you need to continuously strive to get better every day.

Goals Must Have a Deadline

Your goals must have a deadline. A goal without a deadline is just a conversation. Set your goals in these four basic areas:

Financial

Set goals based on income, equity or net worth and cash flow. All of these are financial goals.

Fitness

This is your health. If you don't feel good, you are not working at your maximum capacity. I want you to set some fitness goals to stay healthy. Start small and don't try to tackle all of them at.

Family

Set family goals. What is an example of a family goal? Maybe you want to take four vacations a year. Maybe you want to visit a new state, three times a year or five times a year. You get the point.

Friends

Think about the people you associate with. Your ten closest friend's annual salary and divide by ten that is pretty close to your income. Who you associate with, is who you are like, so keep that in mind. Don't get rid of your friends, just get more that are where YOU want to be financially.

About the Author

For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access

Related posts:

• Should Your Subordinate Be Smarter Than You?
• Open Your Horizons to the Many Forms of Value
• Be More Successful in Testing Value-Enhancing Business Model Innovations
• Real Estate Content and Article Marketing
• Can Search Engine Submission Service Help Your Simple Work From Home Opportunity?