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Friday, July 11, 2025

UAE: Things to watch out for when buying property as a first-time investor

By Vijay Valecha in 'Century in News'

UAE: Things to watch out for when buying...

Vijay Valecha, July 11, 2025, Khaleej Times

Young professionals earning between Dh10,000‭ ‬and Dh15,000‭ ‬are being advised to set aside between 20‭ ‬and 30‭ ‬per cent of their income if they plan to invest in property‭. ‬Real estate experts say disciplined saving‭, ‬coupled with salary growth‭, ‬can help them afford a down payment within three to five years‭.‬

The biggest mistake young investors can make is underestimating the actual cost of homeownership‭, ‬says Vijay Valecha, ‬chief investment officer of Century Financial‭, ‬a brokerage based in Dubai‭. ‬He said people tend to ignore additional expenses that come with owning‭ ‬a property‭, ‬like insurance‭, ‬maintenance‭, ‬and utility fees‭, ‬which can add up to a significant amount‭. ‬“It makes sense to prioritise building a solid savings base before diving into direct real estate investments‭,‬”‭ ‬Valecha said‭, ‬explaining how saving up can bring financial security and give more flexibility in responding to market opportunities‭.‬
Another mistake Valecha said young earners make is not having an emergency cushion‭. ‬“Given that it’s the first job‭, ‬priority should be given to an emergency fund‭,‬”‭ ‬he said‭. ‬“A regular savings pattern should be inculcated‭, ‬to accumulate around six months of living expenses in a liquid investment that could be used in personal financial setbacks like an involuntary job loss‭.‬”
“A young individual starting their first job might allocate their portfolio with 70‭ ‬per cent in equities‭, ‬20‭ ‬per cent in bonds‭, ‬and 10‭ ‬per cent in real estate as a starting point and adjust these allocations to align with their personal goals‭, ‬risk-taking capacity‭, ‬and income‭,‬”‭ ‬ he advised‭.

Source:

Khaleej Times

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