CASE STUDIES

David is a Dental Practitioner in Manchester and had £90,000 of savings which he wanted to utilize in the most effective way in 2005. He did not want to borrow money thus minimising any risks. He was able to continue to make savings of around £40, 000 per year from his practice.

Our Dubai division recommended purchase of more than one off-plan property. David wanted one of these properties to be investment only and the other property as possible use for his own family. He did not want to borrow money.

We selected two off-plan properties - a 1 bed room apartment and a 3 bedroom Springs Villa. The purchase prices were £45,000 for the apartment and £150,000 for the Villa. The payment terms were almost stretching over 3 years and were such that David would be able to add another £90,000 to his savings over this time. David went ahead with the Purchase in January 2005.

David's total investment was £195,000 paid as:

• £78,000 in 2005 45% (10% deposit 15% six months 15% six months)
• £58,000 in 2006 30% (15% six months, 15% six months)
• £58,000 in 2007 30% (15% six months, 15% six months)

In September 2007, David went to Dubai and decided to rent out both properties and just use hotels to stay in. He used a local agency we recommended for the rentals and both properties were rented out prior to completion. He also had a valuation done on both properties for sale purposes. The 1 bedroom apartment was worth £95,000 and the Villa £270,000 - £365,000 combined. In January 2008, almost exactly 3 years after his first payment we did a valuation and the 1 bedroom apartment was worth £115,000 and the Villa £280,000 - £395,000 in total

The combined rental is £26,000 after taking out agency fees of 15%.

Thus David has a capital Gain of £200,000 on an investment of £195,000 (£78,000 topped up by a further £117,000) - Over 100% over 3 years! plus a regular income of £26,000. He does not plan to sell his property. His annual savings are now above £70,000 (some of these coming from the rental income) and he has purchased 2 more apartments in January 2008 without any bank borrowing.

Bill - London

Bill works as IT specialist for a large Bank. He had been to Dubai several times and wanted to purchase a property there. He had savings of £18,000 and was looking to invest. His ongoing savings each year were about £10,000. At the time mortgages were not available for Dubai.

We advised Bill to purchase a Studio Flat in one of the developments near the Marina for £40,000. He thought about this for a few months and the price increased to £46,000 when he actually purchased in February 2007.

He paid 10% deposit and further 3 payments of 10% - Total 40% so far. Currently his flat is valued at £70,000. He is considering selling this even before it is complete, and using the funds to purchase 2 more studio flats.

Arif - Leeds

Arif has a small retail business for many years and had made investments in the UK. He had purchased an investment property in Leeds which was valued at £390,000 in 2005. He purchased this in 1999 for £285,000 and had already paid back the bank loan that was taken out for the purchase. He wanted to invest in Dubai but did not want to sell his Leeds property which was yielding what to him were very good returns in capital growth and rental income.

We recommended that Arif re-mortgage his Leeds property to release funds that could be used for Investment in Dubai. He obtained a 50% mortgage of £195,000 in 2005 and then re-mortgaged again in 2007 to release a further £85,000 to enable payments on the flats.

He purchased 4 apartments in each of two different developments (8 apartments in total)

His Capital Gain/ Profit stand at £372,000 and he still retains his property in Leeds. In January 2008 his investment in Dubai is worth £812,000, and we expect this will exceed £1m within 12 months as in addition to capital appreciation, Arif will get a rental income of £60,000 per year if all his property is let out.