There is always something happening in the world of property and accommodation that one can take advantage of and turn it into something profitable. I will give you three examples of exactly what I mean.
Can you remember where you were and what you were doing when the Berlin wall came down? In October of 1990 I was driving a taxi-cab around Sydney. The reason I ask is – to bring you to a frame of mind and get you to think in similar lines to what most people were thinking and feeling about this monumentally tremendous, fantastically great, historical moment!?
Now that you’ve gotten into the mood of thinking about that moment, I shall tell you what I was thinking followed by – and then doing. I thought of all the properties in the eastern quarter of the city of Berlin, which had for 40years been under the harsh rule of a communist regime. I was thinking there must be some decent suburbs and buildings in those suburbs with suitable accommodation even by the ‘western standards’ at that time. Navigate to this site here http://dubaitostay.com/ for serviced apartments in Dubai.
With the Berlin wall only just done away with, I believed it was imperative to act quickly. So I put together a portfolio, got in contact with a Dutch friend of mine living in Holland and asked him to make some enquires on my behalf. In essence there were a number of properties up for sale along the relatively wealthy streets of Muhlenstrasse and Stralauer Allee which overlooks the river Spree.
The East Germans who were selling up, only wanted to get out and get out quickly because they didn’t trust the politics of the East Germans and they didn’t know how long the wall would stay down. As a result, I was able to purchase 3 properties for roughly $150,000 each. I then got a west German real estate agency in Berlin to maintain them and lease them out as rental accommodation for a period of time. 3 years later, (a lot sooner than I thought), the market started to settle out. It was then that I was able to renovate them and put them back on the market for 5 times their original buying price.
In October 2005 (October seems to be a good month for me) Dubai had begun selling some of the first properties in what was to be the world’s largest man made marina. I heard about the prices and the type of clients who were buying into the marina from a friend of mine in England who knew about my quirky buying habits. The properties at the time were roughly $750,000 each but the financing this time was a lot easier to raise. Look for apartments for short term rent in Dubai.
Despite my careful negotiations I was only able to buy 2 very nice properties in the Jumeirah Beach Residence. These villas were right on the waterfront and were ideal summer accommodation for the moderately wealthy European and British tourists and holiday makers. Again it took around 3 years before these accommodation villas found their respectful market value. Whilst they had increased in value by only 300%, I could tell that the market was flattening out and it was time for me to move on.
The last example of taking advantage of the accommodation market is happening right now. Now is the time to get in and buy property in America. With the collapse of the housing market, houses all over America are going cheap. The question is how long will the low prices last, and when will it turn around. But more importantly it would be advantageous to know where in America it would be best to buy.
To give you a for instance. Detroit city recently declared itself bankrupt. In point of fact there are whole suburbs within Detroit that are lying derelict and abandoned. Houses can be bought for as little as a token payment of $1.00 (provided certain terms and conditions are met of course). However, there is no employment or industries to entice anybody back to Detroit. Moreover, those who do return are opportunists and are not necessarily going to contribute in a positive manner to the community of Detroit. Perhaps this time my investment in Detroit will take a little longer than 3 years to regain a profitable return (But then again – it’s not yet October!)