Secrets of successful off-plan property purchases in Dubai

The developers of Aquarius gate in Dubai has just announced a "sell-out" to investors in the pre-launch phase. This $ 820m mixed-use project on Nakheel's Waterfront, compared to the Palm Jebel Ali, is just the latest example of the successful Dubai off-plan sales. But recent controversy surrounding Damac Properties' Palm Springs has questions about the purchase of construction projects.

After the intervention of the Dubai Lands Department last week, the Palm Springs project has been fully restored and is back on schedule after Damac.

There is, however, a number of "secrets" or important considerations when buying of construction projects in Dubai.

1st Who is the developer? How long has it been? Like many projects launched and how many of them have already been delivered? Have there been complaints about the quality of these developments? Are these the kind of people with whom you would trust with your money?

2nd What kind of financial support, the developers? This is really related to the first question, but it is differentiated. In Dubai, the lowest risk, with government projects. Nakheel, Dubai and Boundless all properties are 100% owned by the government, while the government has a large and effective control of the stake in Emaar.

3rd Even the price for the sale of units from the viewpoint of the construction costs. Are the units easy to look cheap, so that the developer until the end of the building? It sounds contrary to logic, but cheap off-plan should sound warning signals, as a low-cost can mean low quality or even a failure to deliver when the developer gets into financial difficulties.

4th In Dubai, it is imperative, because in July last year, escrow or trust accounts for all off-plan projects. But check to see what Bank is the escrow service. A state bank or controlled, that they have a higher credit rating.

5th If you decide on your purchase financing of construction projects you have to make sure that the payment structure is fair and practical for your circumstances. They do not want to pay interest on a loan for a project is delayed, for example, or at least how to keep the exposure to a minimum.

6th The amount of risk you take in an off-plan buying is also due to the stage of development. If work has not started on the construction site, and all you can see is an architect's drawing and illustration, then the risk of the project delay is highest. If on the other hand, you can see work-in-progress-and a considerable amount of construction to delivery schedule is far more likely. Many developers hold back some units for sale in the construction of new cycle, but there is more money for them.

7th Your current rental costs should be considered. When buying off-plan means that you will have to stay in an expensive rental for a long time? If yes, then you must ensure that the costs, and examine whether a movable property in the secondary market may no longer make sense.

8th Location is the most important consideration when purchasing a property, but people sometimes seem to forget that the purchase of construction projects. Check out the location in person, even if it is only a piece of desert! Because there is a big difference between the cost of living in Downtown Dubai next to the Burj Dubai, the highest building in the world, and in the desert of Dubai.