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Buying property can be a traumatic experience at the best of times and there can be some additional headaches, some of which are in your control and others are not. However, sometimes the worst problems are encountered when just a tad of consumer due diligence would have easily avoided such situations.
If you would like to read our latest offering from Property World International on the pitfalls when buying property then best you read on – no small print, just some wise words of caution.
Unfortunately you have to take the rough with the smooth or so the saying goes. It can be said, that the Dubai Property market has been predominately plain sailing up until now but there are ripples on the horizon which could create more than a storm in your tea cup if you are not a seasoned sailor. I am not referring to the decline in property prices or attempting to forecast when or if that will happen. The inevitable market forces of supply and demand will take care of that for us. What we are seeing in Dubai, as witnessed in other burgeoning property markets around the world, is the presence of unscrupulous operators who are in it to make a fast buck; and generally that’s not for you though. We all understand that in business there are profits to made and as long as that is done fairly in a professionally regulated manner, then everyone can win. What we are referring to here is the fast buck that is made to the detriment of the investor through unprofessional or indeed illegal means.
Dubai can become of victim of its own success where the perception is that everything is hunky dory and whatever you buy here it is bound to do well. So when a potential investor sees a deal that sounds too good to be true the normal rational of financial due diligence before purchase flies out of the window. And you can bet there is some fraudster/con artist or less than honest realtor who will take advantage of that predicament. We know it can happen at every level of business in every profession but the Dubai Real Estate market can act as a honey pot for such operators.
The normal checks and balances that investors normally carry out when buying seem to be given only scant regard when buying in Dubai. I am amazed at the number of folk who buy property in Dubai without the aid of a lawyer not to mention even a financial advisor. Such professional bodies can certainly offer the third party perspective that could highlight the potential pitfalls of a deal and certainly remove the blinkers. These blinkers are very real and they are normally made from 100% grade “A” pure greed. Don’t deny it – it is one of the most powerful human emotions whether it is greed for money, love, power, good looks, fame – you can bet the fraudster will play this card every time. Hopefully a professional advisor (who is not involved in the deal) can proffer some common sense and remove those greed blinkers before you part with your hard earned money.
Sometimes investors are so overwhelmed by the complexities of a great deal that they cannot see the potential downside no matter how hard they are trying to find it. Once again, the professional adviser (if he is worth his salt) should be able to identify and if you are not happy with their prognosis; seek a second opinion. This is not just a course of action exclusive to when Doctors tell you that you have something terminal; seeking a second reference could avoid intensive care for your wallet. And seeking a professional reference is crucial; do not do a deal because your friends/family have already done so and given you the green light. This is the lemming approach and plays right in the hands of the fraudster once again.
Maz Akhtar was recently locked up for 30 years in Dubai for selling fictitious developments; he is not the first or will he be the last. Well done to the Dubai authorities who have taken this matter with all the seriousness it deserves and issued a sentence commensurate with the crime. Aside from protecting the real estate market, this activity if left unchecked could undermine the overall business environment of the United Arab Emirates particularly when there is so much effort to attract foreign capital. Moreover, let’s hope that this sends out a very strong signal to any practicing or would be scammer looking for rich pickings, that Dubai is not the place to come to. Whether the casualties of this particular episode will ever see their money again remains to be seen; the only comfort they have at present is his present forced lodgings.
Further protection could be achieved with the advent of the property law which needs to take effect and with that, a level of regulation that should route out potential unsavory business folk. The main players of the Dubai property market should take steps to protect their businesses and indeed adopt some form of self-regulation in the absence of any strict Federal guidelines at present. With the Abu Dhabi market hot in the heels of Dubai not to mention other developments around the GCC, there will be similar stories to those of Maz Akhtar.
We cannot stamp out the practices of individuals looking to make money at your expense through iniquitous means. However you can make yourself aware of their existence and throw a web of caution around your pocket when someone is trying to get into it. Get help from professionals who can offer an unbiased view particularly when you are parting with large sums – buying property is likely to the largest investment you will ever make. Make your property dreams come to reality, do the ground work, leave greed to one side and avoid creating yourself a nightmare. |
