quote:

Originally posted by wild rover:
Hi

Has anyone any knowledge of the man made Al Marjan island in RAK?
Softof........did youcome across this in your research into the RAK.
The investment would be commercial / office space.

regards.

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Hi wild rover. Sorry, afraid I can't help. Did come across it but didn't find much information except the usual stats. Good luck with your search, please keep us informed if you find anything!

Zeeniebabes thanks for your comments. Markinland's reply is spot on, it would be unrealistic for us to expect 52 weeks occupancy, however, as the apartments we have invested in are going to be complete ahead of many other developments, we are in a very strong position to rent them out and make an excellent ROI in the first year at least. Of course there will be lots of construction going on but as markinland mentioned it will be less dense and more spread out. I rent out my 4 bed apartment in Horizon Tower near the marina in Dubai and so far it has been fully occupied bar a few days and it is next to a building site.

Zeeniebabes, it's also interesting to note that you have still visited Dubai THREE times even though it is one huge construction site

Finally, I think having no restrictions on alcohol in RAK is going to be a BIG pull for holiday makers who have already decided to holiday in the Emirates.

Well it's all very thought provoking...
I first visited Dubai 7 years ago and stayed in Jumeira Beach Hotel. This was the last resort along the shoreline (if I remember rightly) - there was nothing much opposite either, just desert. I got the shock of my life when I went back 15 months ago (twice in three months) and saw all the cranes and how the development had moved so far along the coast line. Must admit I found them offputting (I was staying right next to it) - noisy and ugly and made sure when I went back two months later, to stay at the One & Only, nearer to Jumeira where peace was restored . I got another shock last night when I visited the skyscraper forum. I just hadn't realised just how explosive the building had become and right back around the Burj area! Yes, there were TONS of cranes last time, but the most exciting thing at that time (that was finished) was the indoor ski slope, but development now is just unreal. It is quite bewildering to be honest. What is the yield on your 4bed apartment that you say has been rented out virtually all the time? I think it would take a week of reading all the forums avaiable and other websites to really get a handle on what's happening out there (sorry if I'm boring you, Dubai has been off my radar so I'm playing catch up), and much changing of opinions in that time. Personally I would have thought that rental to business people would be the best bet, as it would be year-round. I do scratch my head over whether there really is enough demand to fill all those apartments with holidaymakers. I think the question regarding Dubai and RAK is 'what do people want from their holiday' - are they going to want a 'New Dubai' when Dubai has all the 'built attractions' to lure them? If it's hot weather, a more lush aspect, low rise and able to buy alcohol, they could go to hundreds of other places. Still playing Devil's Advocate - a very necessary process before deciding where to put my hard earned money! I guess (like all of us) I would love to find a new hotspot that really does provide a high yield. So many options out there, but hard to make the money stretch if costs are only just being covered!

Zeeniebabes

We primarily want a place that we want to go to for holidays and short term rent for the rest of the time. Of course there are some other places we could buy which would fit the criteria of weather, beaches etc but would that place be:

1. Close enough to visit Dubai in a day but with a "resort" feel, i.e. beaches and open spaces
2. Good value
3. On a competitive air route
4. With middle eastern culture and values

I guess it comes down to personal choice if you actually want to use the apartment yourself.

Well, to be devil's advocate, I think that there's a good chance that the whole Middle East and North Africa thing is a bubble waiting to burst. So many of the postings on these forums are from existing investors in off-plan - people who have put in so much with nothing to show for it that they have to believe in the best-case scenario. Or existing owners who are so desperate to sell-on to make their margin that they are hyping-up the potential. It will only take another stock market collapse like the one this week and the market for foreign property could fold like a pack of cards. Of course, it could all turn out fantastic (or perhaps, something in-between, in all probability). Who knows?

Yes Markinlad I understand where you are coming from. I have invested in Morocco because I think it is somewhere that 'I' would like to go on holiday to, and I shall use it from time to time.
How much is the air fare to RAK?
msej449, do you think a stock market crash would make the overseas sales fall like a pack of cards or stop people going on holiday?? I am so wishing I'd cashed in my European Investments the other week as I was going to, damn! I have bought a quality product overseas and feel that it is rather more impervious to stock market fluctuations. The sort of people I know who would rent it are rich, week in, week out.
Yes I guess us off-plan investors who buy something that we would happily use ourselves, have made an emotional investment as well as financial, so we must be passionate about our product. It's now time for me to be less emotionally involved in my next choices, but to continue to play Devil's Advocate and make the best financial decisions. It means I've got to tap into what other people might want, and not me personally. I would also like to earn some money!!*g*

quote:

Originally posted by Zeeniebabes:
Well it's all very thought provoking...
What is the yield on your 4bed apartment that you say has been rented out virtually all the time? I think it would take a week of reading all the forums avaiable and other websites to really get a handle on what's happening out there (sorry if I'm boring you, Dubai has been off my radar so I'm playing catch up), and much changing of opinions in that time. Personally I would have thought that rental to business people would be the best bet, as it would be year-round. I do scratch my head over whether there really is enough demand to fill all those apartments with holidaymakers. I think the question regarding Dubai and RAK is 'what do people want from their holiday' - are they going to want a 'New Dubai' when Dubai has all the 'built attractions' to lure them? If it's hot weather, a more lush aspect, low rise and able to buy alcohol, they could go to hundreds of other places. Still playing Devil's Advocate - a very necessary process before deciding where to put my hard earned money! I guess (like all of us) I would love to find a new hotspot that really does provide a high yield. So many options out there, but hard to make the money stretch if costs are only just being covered!

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It's about 13% after the rental agency has taken its cut. I expect this to be sustainable for another six months or so but with the release of JBR imminent (or they may have already been handed over?) and other developments completing I suspect the rental market will become much more competitive. I know there is an awful lot of speculation about Dubai and many of the comments are well founded - I myself don't particularly like holidaying in Dubai and find it way too hectic but I have friends who love the 'buzz' of the place and return time and time again. I have to keep reminding myself that just because a type of holiday may not be my cup of tea, it doesn't mean others won't love it ...

From an investment point of view, I can see that there may be an oversupply of rental apartments for holiday lets in the future but I am quite confident that you can still make a decent ROI (depending on your intial outlay) by switching to long term letting.

I know lots of people use these forums to hype developments they have invested in but IMHO I think there are an equal amount of people who use these forums to put out the feelers and get the opinion of others. As far as I am concerned, the opinions of both hypers and critics are equally welcome!

Going back to RAK, I do genuinely believe that it is offering something different to Dubai so won't be 'in competition' with it. I think they will actually compliment each other.

Zeeniebabes

Last week you could get a return flight to Dubai with Qatar at £170 return including tax. I suspect RAK would be similar as you fly into Doha and would get a connecting flight to RAK instead of Dubai. You could also very easily get there flying into Dubai, the routes always competitive because of the number of flights going there.

Hi Softof

Just got back from our holiday in Dubai and RAK. Had a great time. Really pleased with RAK, the area is lovely and the people very laid back and friendly. It's got a very different feel from Dubai, probably like Dubai was 20 years ago. In terms of investment it will be good for short term rental as hotels are in short supply. I'm sure there will be a market for people who live in Dubai taking long weekends to escape the frenetic lifestyle. In terms of visiting the Mina Al Arab site there's not actually much to see yet just ground works but the area is good.

Lind

Hi Softof

I read in an earlier post that you have an apartment in Marina Diamond. Can I ask which tower you are in and if you are happy with the build quality and the location.

Thanks

Lind

i just bought in Royal Breeze, Al Hamra Village, in RAK.

RAK is really booming at the moment, companies moving in, and property prices are on the way up in a big way. You can get a high-end lagoon view studio for only AED 325,000 (same price as a low-end studio in International City in Dubai). They will double by the time its ready, and still be much cheaper than comparable properties in dubai.

i bought from www.ambientrealty.com/rb

just an update - the developer is going to the price up shortly on Royal Breeze by around 7%.