quote:
Originally posted by yh:
Deal experts,
Could you adivse me if buying a condo hotel will be a good investment in Dubai?
Thanks
The worlds greatest investor, Warren Buffett would think not.
He has been more sucesful over the long term than any one else (by miles).
His key principle is:
1) Buy from pessimists and sell to optimists.
He would never buy in Dubai now as its too late.
He would buy in say Germany which is full of overly pessimistic investors as this enables him to buy at best value. He woill then sell to an optimist (just like todays new Dubai investors) in 10 years time and get out before the cycle swings back to pessimism.
Dubai has hundreds of thousands of amateur newbie investors all chasing the same returns and rent. Many will reasise thier mistake quite soon.
Surely better to buy into an emmerging market where pessimism is high nsuch as Morocco. The mere fact its so new means the upside is huge, yet in 5 years the upside will have gone and that will be a bad time to buy, but sure enough thats when all the amateurs spot the bandwaggon.
People who buy based on historic returns do so because they feel comfort in the figures, but by then its too late, they should have bought when it was lonely and uncomfortable.
