Perfectly done, bravo! I always recommend my F&F to go for renting in dubai and invest directly into either home country or gold for consistent risk free growth. Buying is property is only good if buying on cash and getting an option where the seller needs urgent cash
Nice video @Wali Khan. I've been doing the same comparison for the past few months. Couple of calculations / assumptions I did differently: 1. Down payment - I've seen quite a few banks offering at 20% instead of 25% (off course depends on the income) 2. Opportunity cost - It is true that a 7% return should come about from the stock market / other investments - but I have personally not been able to get those returns with low risk. For a person where there is no opportunity cost - I felt buying is a good option. 3. Mortgage tenure - Lease for 25 years to keep the obligation low, but pay back as quickly as possible / refinance to repay early. that way less interest and soon after that's cash back / return. If one can get an average 7% return - then this analysis is toe to toe and renting might even be better sometimes - especially with Dubai's market volatility.
An interesting topic for your vlog could be “Time in the market vs Timing the market” I.e. instead of trying to predict market, waiting for the prices to drop before you make an investment (equity market/real estate etc), it is better to invest now and build equity by spending longer time in the market
In short, if your EMI is less than (or equal to) Rent, I would choose mortrage any time any day. The only caveat is if interest rates rising dramatically which can still be tackled as long as you are not heavily leveraged with multiple properties (one property is doable IMO). Rest all of the cons mentioned are manageable I think as long as you are earning good and your emi is not more than 35-40% of your income Also you can get residency with it too, which can be game changer
Great video! Very informative. If you can make a video on a scenario covery opportunity cost, when someone buys a 1M property on cash vs renting in Dubai, it would be great.
As long as your cash flows allow you to hold the property (whether you live yourself or rent it out to tenants), buying is a better option. Property prices may crash in a given cycle but over a longer period they almost always appreciate in value (same goes for any other investment). Important thing is that you stress test your potential purchase to ensure you are able to hold your property during difficult times. What do you think?
Just note that for Dubai - sometimes, it does not hold true. Even after 10 years, there are places where the properties are 20% down. Assuming that property price will always go up is the only misconception. It can be true to some extent for villas may be - but not entirely true for apartments. Stress testing is VERY important. Banks sometimes do that, but self assessment is important.
Wali bhai if i buy a property of 1 million in dubai and i rent it out in partitions , how much charges will i face with the bank , or any other charges. Kindly make a video on this topic
do you think this is safe investing in naya pakistan certificates at this stage of country's economical conditions? I am aware that it will be your personal opinion and not any formal advise etc
thanks for the video. I will re watch your video as I am also not very fluent in hindi/urdu. Is it better to buy new property or buy from secondary market, as older properties are less pricy.
Wali ji UAE recently introduced retirement visa which can be got after 55 years of age if anyone has 1 million dhs worth of property in uae. This will definitely game changer move as we can make uae our homeland and will not have to leave after 55 age. Please make a video regarding the impact of this change. Moreover mortgage and remortgage option which enables someone to make 2 3 property simultaneously make a video about that as well
@@WaliKhan_2k Thank you so for sharing the sheet. While the initial baseline you set was for aed 1M apartment. However, what would you advise for a person recently moved ... Looking for 2 BHK apartment of cost around 550k-650k aed and options of downpayment from aed 40k and then rest 1% monthly or so for 6-7 years tenure.... Should he /she buys it or based on your analysis - rent it. Again, you shared here Missed Opportunity cost which is infact a big factor to consider ... What would be your opinion? Any video or vlog you can make of it would be cool.
@@WaliKhan_2k i am using boglehead philosphy as my reference point by the way .in case you are wondering where i am getting this idea from :) By the way excellent video and amazing compile piece of information bro..great job
Awesome Mashallah !
@Wali Khan you have almost challenged the whole Dubai’s real estate. Good comparison with approximately real assumptions. 👍👍
Wali bhai, kudos for such an informative video. You have changed my whole thought process regarding renting & owning. 🙏🙏
Perfectly done, bravo! I always recommend my F&F to go for renting in dubai and invest directly into either home country or gold for consistent risk free growth. Buying is property is only good if buying on cash and getting an option where the seller needs urgent cash
Nice video @Wali Khan. I've been doing the same comparison for the past few months. Couple of calculations / assumptions I did differently:
1. Down payment - I've seen quite a few banks offering at 20% instead of 25% (off course depends on the income)
2. Opportunity cost - It is true that a 7% return should come about from the stock market / other investments - but I have personally not been able to get those returns with low risk. For a person where there is no opportunity cost - I felt buying is a good option.
3. Mortgage tenure - Lease for 25 years to keep the obligation low, but pay back as quickly as possible / refinance to repay early. that way less interest and soon after that's cash back / return.
If one can get an average 7% return - then this analysis is toe to toe and renting might even be better sometimes - especially with Dubai's market volatility.
Thanks for highlighting the opportunity cost.
An interesting topic for your vlog could be “Time in the market vs Timing the market” I.e. instead of trying to predict market, waiting for the prices to drop before you make an investment (equity market/real estate etc), it is better to invest now and build equity by spending longer time in the market
Nice Khan sahb❤
Asw.UAE me kon se developer se property kharidna chahye.pls some name mention.thanks.
Wali bhai please make video on compounding where to do it how to do it please
In short, if your EMI is less than (or equal to) Rent, I would choose mortrage any time any day.
The only caveat is if interest rates rising dramatically which can still be tackled as long as you are not heavily leveraged with multiple properties (one property is doable IMO). Rest all of the cons mentioned are manageable I think as long as you are earning good and your emi is not more than 35-40% of your income
Also you can get residency with it too, which can be game changer
Great video! Very informative. If you can make a video on a scenario covery opportunity cost, when someone buys a 1M property on cash vs renting in Dubai, it would be great.
Dono per bnaye vid please.
Love you wali khan
As long as your cash flows allow you to hold the property (whether you live yourself or rent it out to tenants), buying is a better option. Property prices may crash in a given cycle but over a longer period they almost always appreciate in value (same goes for any other investment). Important thing is that you stress test your potential purchase to ensure you are able to hold your property during difficult times.
What do you think?
What you say sounds good. Nice point, especially last point - stress test your potential purchase.
Just note that for Dubai - sometimes, it does not hold true. Even after 10 years, there are places where the properties are 20% down. Assuming that property price will always go up is the only misconception. It can be true to some extent for villas may be - but not entirely true for apartments.
Stress testing is VERY important. Banks sometimes do that, but self assessment is important.
Is it possible to meet up sometime for coffee? I’m based near Sharjah Expo
Buying a property through mortgage and then renting out part of it. Will it cover the emi costs ?
Mr wali do u give 1 on 1 mentoring sessions
Sir could u made on villa's in Dubai
Make a video about full payment buying property and clear how much time we take this i mean more than 99years?
Wali bhai if i buy a property of 1 million in dubai and i rent it out in partitions , how much charges will i face with the bank , or any other charges. Kindly make a video on this topic
do you think this is safe investing in naya pakistan certificates at this stage of country's economical conditions? I am aware that it will be your personal opinion and not any formal advise etc
thanks for the video. I will re watch your video as I am also not very fluent in hindi/urdu. Is it better to buy new property or buy from secondary market, as older properties are less pricy.
I might remake the video in English for the English language channel too.
Mortgage rates are variable after 3 years in UAE!
Yes, this is the caveat I talked about too and this is one of the assumptions.
Wali ji UAE recently introduced retirement visa which can be got after 55 years of age if anyone has 1 million dhs worth of property in uae.
This will definitely game changer move as we can make uae our homeland and will not have to leave after 55 age. Please make a video regarding the impact of this change.
Moreover mortgage and remortgage option which enables someone to make 2 3 property simultaneously make a video about that as well
I made a similar video a while back - did you check this one? : th-cam.com/video/WmJYtIJTE8U/w-d-xo.html
Can you please share the link of your excel sheet? Could not find it exactly in description. Thanks.
Thanks for pointing out. Will update in a couple of hours
updated in the description now.
@@WaliKhan_2k Thank you so for sharing the sheet. While the initial baseline you set was for aed 1M apartment. However, what would you advise for a person recently moved ... Looking for 2 BHK apartment of cost around 550k-650k aed and options of downpayment from aed 40k and then rest 1% monthly or so for 6-7 years tenure.... Should he /she buys it or based on your analysis - rent it. Again, you shared here Missed Opportunity cost which is infact a big factor to consider ... What would be your opinion? Any video or vlog you can make of it would be cool.
500k aed over the period of 15 years could be made in Nasdaq easily to cover the delta .
What is the annual return you are assuming?
@@WaliKhan_2k with only SPUS and HLAL I am expecting a 9 to 11 % annual returns.
@@WaliKhan_2k i am using boglehead philosphy as my reference point by the way .in case you are wondering where i am getting this idea from :)
By the way excellent video and amazing compile piece of information bro..great job