hi everyone my name is the founder and
ceo of fam properties so when buying
ready property obviously what you see is
what you get
is one of the benefits there's no
uncertainty around buying a property
that you can see
number two of course there's immediate
rental income and number three you can
get the highest
ltv loan to value so you can avail
bank finance
[Music]
number one you need to run your cma
comparative competitive market analysis
where you see prices of properties of
surrounding properties
number two rental prices especially if
you're an investor it's important to
understand how much trend and how much
return on investment you can generate on
yearly basis
and number three probably service
charges is also something important to
factor
when buying ready property
the most important benefits for buying
of plant properties number one would be
availing payment plans at zero interest
number two you would have variety of
options especially if you arrive early
to
launching to a project that's just being
launched you can pick and choose prime
units
number three also dealing with
developers directly and buying it from
the
from source
you need to understand what are the
prices of similar ready properties
so if you're buying an off-plan property
today and the salesman is promising you
that will double in price once it's
handed over you can actually check today
how much a similar property that is
ready is selling for
number two you have to check also the
rental prices of similar ready
properties
because that would also give you a hint
how much you would be able to
achieve on annual rental income and
number three which is equally important
is to check the historical track record
of delivery
from a punctuality standpoint as well as
from quality so go and visit
projects that have been completed by the
same exact developer
[Music]
both pretty much the same you have to
pay the four percent the ld transfer
as well as their two percent commission
so when it comes to the secondary market
seller has to pay two percent and buyer
has to pay two percent this is the
standard
when it comes to buying off plan or
directly from developers mostly the
commissions are covered by
developers and even developers sometimes
they run ad hoc basis offers where they
pay the four percent on behalf of the
buyer
it's a great opportunity to buyers to to
invest in these properties and to
leverage on those payment plans provided
that it does not inflate
the price so buyers should always do
their math
how much they would pay in term of
interest if they want to finance from a
bank and how much more
they have to pay developers in order for
them to get these long-term payment
plans
i think it depends on the market cycle
we're in so during
down markets to get better deals on the
resale market on the secondary market
but when markets are booming you are
better off to go to developers and buy
directly from developers
[Music]
number one check your spa and probably
get a real estate lawyer to check your
sba
as well so you need to make sure that
the developer is registered in dubai
land department
there's an escrow account for that
project and your all your payments are
going
strictly to the escrow account that is
managed by the government
so they make sure that your money
basically is used to build
that particular project
in general whenever you have prolonged
payment plans
whether it's rent to own or it's a
post-handover payment plan
the interest is always built into the
price
so you always have to make sure that the
prices are not
you know overly inflated by the interest
that's number one
and number two i think the main
difference would be
your ability to continue and your need
for an earlier exit
so with the rent to own you can exit
without any future commitment
whereas with the payment plan you're
exposed to the total purchase price
and you have to continue all the way to
the end um
you always have to factor your exit
strategy on both cases and check the
conditions because the reason
as well gives you more flexibility in
terms of earlier exit
i think bayou didn't just contribute to
farm success to start with i think
they've really
enhanced the the overall standards of
how real estate agents operate in the
way
thank you bayout for all your efforts
and contribution to the reset market in
the way
and of course for us at fm properties we
use our long-standing partner that we
really pride ourselves
to partner with
you