Day 2
Lessons 2
Investments for capital growth
Increase your capital by at least +30% through precise investments in off plan real estate in Dubai.

Who this type of investment is suitable for:
For people aiming for high profits in a short term, ready for calculated risk.

People who choose this type of investment are divided into 2 categories:
1. Flippers - investors who want to buy cheaper and sell higher in a short term (up to a year)
  • They are only interested in profitability and security. In order for them to invest, they must be sure that this property will rise in price and want the lowest price, so it's ideal for them to offer property from an auction where we can choose potentially the most profitable thanks to our expertise and connections

  • They are interested in: quick income, high ROI in the short term, the person selling should deeply understand the figures and the market, they want to be sure they won't lose money, they understand investments and real estate, it's important to speak their language of numbers and demonstrate deep expertise (with them you need to speak with examples based on our cases), superficiality repels them

  • It's very valuable for them that we give a guarantee, because they will be sure that we are experts and take responsibility.

  • It's important for them that everything is remote and they don't waste time buying.

  • Confidentiality is important to them: it should not be known that you specifically bought this apartment and we can ensure this by registering the apartment to a company which is registered to a nominee owner and tax and other third parties will not know about your ownership

  • Tax optimization. By arranging residency in Dubai for our client, information about income and purchase will not go to the state authorities of the buyer's country (without a special request) otherwise UAE like other countries exchanges information
2. Long-term Investors and people who want to park their capital
  • They want to buy real estate at the lowest price - increase capital during the growth of real estate but not engage in quick resale, after the apartment will be handed over - rent it out, use it as holiday homes, that is, they think long-term and they care about capital growth.

  • Holiday / Vacation homes - this is an apartment in which they move in during a vacation in Dubai and can give it to their friends etc.

  • With them, you need to talk about why Dubai - is a real estate growth for 10 years and more, why it is a stable market, why it is a growing market and generally talk about the future for 5 - 10 -20 years.
Technology of choosing apartments:
1. Choosing districts
  • A district increases in price when there is infrastructure around. You need to look for a district with full infrastructure, with its own hospital, school, so that people there have a reason to stay and live inside. It should be a district not only with residential buildings but also with villas, townhouses, so that people of different interests can concentrate in one area.

  • Sometimes we recommend completely new districts being built. The infrastructure will grow in 7 years. But in fact, the price will rise in 3 years, because by then everyone already believes that everything is being built, infrastructure will be there soon, the price for the most part rises in 3 years, which should organically grow in 7 years.

Analyzing data and infrastructure - we chose those districts where there is stable growth for 2 years + the best infrastructure.

Best districts from the point of view of investments in off-plan real estate:
  • Business Bay
  • Dubai Marina
  • Palm Jumeirah
  • Dubai Hills Estate
  • Dubai Harbour
  • Dubai Creek Harbour
Read more in Day 1: Lesson 4
2. Choosing Reliable Developers
The next step is very important to choose reliable developers. Over 13 years in Dubai, we definitely know who has good quality and terms and who has bad.

We recommend developers:
  • Emaar
  • Meraas
  • Nakheel
  • Omniyat
  • Dubai Properties
  • Select Group
  • Ellington Properties
3. Apartment selection criteria:
  • Better to have a large studio than a small 1-bedroom
  • The most scenic apartments, middle and high floor
  • Prefer less balcony, more living area
  • View from the apartment: the best view is the sea beach, garden, pool. It is important that the view is not a road or another building. If there is construction nearby - plan what the view will be in 3 years.
  • Panoramic windows
  • There should be no load-bearing column
  • Large bedroom
  • Bright apartment
  • High ceilings
  • Guest toilet
  • 2 sinks in the master bedroom, bath + shower
  • 1-year warranty from the developer for any breakdowns, problems
  • Corner apartment
  • Beautiful balcony
  • Parking space - it's better to take a parking spot inside rather than outside, because first of all, the sun is scorching outside, and secondly, someone else can constantly park in the parking lot.
  • Pay attention to the quality of the developer and the quality of the furniture. It's best when the furniture is from Italy, France.

Mandatory amenities in the house:
  • Pilates, yoga room
  • SPA, steam room
  • Gym with a view (sea, pool)
  • Scents (top brand fragrances are always used in toilets)
  • Tennis courts
  • Swimming pool
  • Children's playground
  • Safety - it's clear who is in the house, you need to register guests, guests are checked
Developer's Installment Plan
The developer automatically provides an installment plan.

Initially, you'll cover a booking fee that typically falls between $1500 and $15000, varying by developer. Following this, an invoice for 10% of the down payment will be issued. Additionally, a 4% fee is payable to the land department.

Then, you and the developer will sign an FPA - a purchase and sale agreement. Based on the payment schedule, you'll contribute 5% every semester. Upon completion of construction, a final payment, usually around 40%, is made, contingent on the agreement with the developer. Please note that payment percentages may fluctuate based on the developer and specific agreements.
Steps to Purchase Property from a Developer:
  • 1. We collaboratively select the property that meets your requirements and has potential for value appreciation.
  • 2. We confirm the property's availability with the developer, as properties in Dubai can sell out quickly.
  • 3. Our team verifies the escrow accounts and the project details on the Dubai Land Department's website.
  • 4. You submit an EOI (refundable) or Deposit (non-refundable) - typically 2-5% of the property value to secure the property for you. This deposit is sent directly to the developer's bank account.
  • 5. Complete and sign the Booking Form to reserve the property (this can be done online).
  • 6. You pay the remaining portion of the initial payment (10-20%) within 1-2 weeks. This payment is also made directly to the developer's bank account.
  • 7. A 4% fee of the property's cost is paid to the Dubai Land Department (DLD).
  • 8. Lastly, there are additional fees: an administrative fee (580 AED) and OQOOD - a temporary ownership certificate (2 100 for properties under 500k sale price, up to 4 200 AED).(above 500k sale price)).
  • 9. The main Purchase and Sale Agreement (SPA) can be signed remotely, in-person at the developer's office, or by mail, typically within 1-2 months.

    Contract example: here
  • 10. Proceed with the remaining payments towards the project's escrow account until the point of resale or receipt of keys.
  • 11. Upon completion of all payments for the property, you'll receive the Title Deed, your certificate of ownership (250 AED), and you can then take possession of the property and receive the apartment keys.

    Title Deed: here
Property Auction
Developers often resort to auctions when there's a high demand for their apartments. At times, these properties can be sold out within minutes.

How does the auction work?
The auction process begins with a preliminary registration.
Let's say there are 1000 apartments and 5000 tokens are distributed for them.
You fill out a form and receive a numbered sign.

The auction, conducted by the developer, runs from 09:00 to 13:00. You attend, await your turn, and if your number is called, you win.

You then have the opportunity to complete a booking form.
To reserve an apartment at an auction, a fee up to $15,000 is required, which confirms your intent to purchase.

Within 7 days, you're expected to pay the remaining balance, which constitutes 14% of the apartment's cost.

A client's interest can be represented by an agent. The client usually confirms their interest beforehand, provides payment details, or makes a transfer, or remains online to complete the payment and secure the apartment.

Why should you choose Independent company?
  • Access to insider information and exclusive properties
  • With our strong connections and 13 years of a flawless reputation, we can secure the most desirable properties even before the auction commences

Winning the auction and securing a token for the apartment requires a payment ranging from $15,000 to $25,000, depending on the apartment's cost.

Clients transfer the money to us before the auction. A contract outlining all conditions is signed between us and the client. If we fail to meet the terms, a 100% refund is guaranteed.
What advantages can Independent company provide when purchasing primary real estate?
  • Give a recommendation on what to buy and what not to
  • Get a unit that is not for sale, negotiate with the developer or win it at auction
  • We have contracts with all resources for placing ads and we can easily place and resell an apartment
  • We can rent out the apartment
  • We fully financially accompany transactions, that is, cash, non-cash and crypto, we can convert and carry out the transaction.
  • We can help get and arrange a golden visa from real estate investments
  • We can comprehensively solve the client's issues, including concierge, transportation, etc.
Why are we confident that Independent and its clients can resell real estate with a 30% return or higher?
  • Our decisions are based strictly on data analysis and extensive experience. The property selection process is managed by our product department, led by the company's founder Alexey. With over 13 years of experience in the Dubai market, Alexey's expertise helps us avoid mistakes.

  • Through our 'Passive Income' service, we attract investors interested in purchasing ready-to-move apartments to rent out. This means we have a ready pool of potential buyers for your property.

  • Our strong industry connections allow us, for an additional fee, to secure the best apartments even before the auction commences. This early access guarantees a 30% return as properties are priced higher once open sales begin..
Lesson learned? :)