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The hidden risks behind Michael's investment
Michael joined GREM prior to his purchase. He wanted to make sure everything was really well organized. His goal was clear: to work less and live on real estate income.
During a webinar, he was offered an opportunity: a townhouse worth €750,000 in the Masaar 3 community.
According to the broker, this was a smart move. The scarcity of villas and townhouses in Dubai would automatically increase the value. In addition, there was an attractive payment plan: 40% during construction and 60% upon completion.
But, the broker emphasized, Michael never had to pay that last part. “You just sell at a profit before delivery.” In fact, an increase in value of 19.8% per year was forecast.
For Michael, it sounded almost too good to be true. That's why he thought: “Let me check.”
What the Second Opinion revealed
During our investigation, the truth came out.
The townhouse that Michael had in mind... wasn't in Dubai at all, but in Sharjah. A completely different market, with a different price level and a different investment climate. So the promise that the scarcity in Dubai would automatically increase the value did not apply here.
And the flip promise? It also fell apart.
In Masaar 1 alone, 4,863 villas and townhouses were for sale on Bayut, a significant part of which had been online for 7 to 9 months without a buyer. More than a thousand ads have also been added in Masaar 2, still under construction. Against that background, Masaar 3 was put on the market. These homes were also offered below the average asking price. Even taking double counting into account, this indicates a market with a lot of supply and slow uptake.
What would have happened without Second Opinion
Had Michael gone through with the purchase blindly, he would have ended up in a nightmare:
- No buyer before delivery.
- Fund the remaining 60% of €750,000.
- Stuck in a market where housing can be online unsold for months.
His financial plan, working less and living on real estate income, would have collapsed like a house of cards.
How Michael managed to recover his investment
Because Michael chose a Second Opinion anyway, the situation completely reversed.
He got black and white where the risks were and knew exactly where he stood. He was able to adjust his strategy before getting into the wrong deal.
Instead of getting stuck in an oversupplied market, he had the opportunity to confidently build a strategy that does match his goal: stable income and financial peace.
The lesson for investors
Michael's story shows how big the difference is between a sales pitch and actual market data.
A spreadsheet with a 19.8% annual increase in value means nothing if thousands of homes are for sale unsold for months.
An independent audit can make the difference between an investment that ends in a financial headache file, or an investment that offers the prospect of stable income.
At GREM, we see every day that a Second Opinion protects investors against exactly these kinds of hidden risks. Facts and independent advice make the difference.
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