Three weeks ago I commented on the Dollar Index breaking past the psychological 100 resistance level on an unchallenged path to 101.
Less than a month later, King đ Dollar’s now reached 20 year highs. Most major currencies have been crushed in its path. Such is the current scale of market risk-off sentiment.
Besides soaring mortgage rates, treasury rates and high volatility; comes the drain on âperceivedâ wealth and trading income from the stock markets. A combined formula with significant slowdown effect on the economy. All this with only 2 hikes of 75bps total (so far).
Nael Mustafa – CIO Real Estate at GFH Financial Group
What’s this all mean?
Forget the 2008 Global Financial Crisis. Forget the peak-fear of Covid in early 2020.
The Dollar’s now at levels not seen since the systemic uncertainty that took hold in the aftermath of 9/11.
How’s this relevant to Dubai Real Estate?
In simple terms, the more expensive the dollar, (and therefore the Dirham), the less attractive Dubai Real Estate as an asset class. Demand…decreases.
To put this in perspective, at the time of writing, UK #Sterling and Indian #Rupee denominated investors had to respectively pay nearly 7% and 2% more to buy Dirhams, than they did 3 weeks prior.
That means the same property, asking the same price, now costs more for a buyer from Manchester or Mumbai.
How long the dollar stays high is unclear. It’s taking a breather, having been heavily overbought.
But its path of least resistance is north. Expect it to re-attack 105.
Pro Tips:
For short term traders. If you have any Dollar or Dirham liquidity, wait for 105 and sell your assets. Repatriate the proceeds into your native currencies, banking the capital appreciation and FX upsides. Double-whammy!
For long term Dubai Real Estate landlords. Expect the market to switch, from seller’s favour to buyer’s favour. But don’t panic. Jerome Powell & Co are doing a great job at managing market expectations. And locally; Dubai’s policy makers are doing everything to make the Dubai Real Estate market more resilient. There is a price correction in the short-term future. But unlike our previous cycles, this time we can expect a soft-landing.
An AI Implementation Strategist accredited by the prestigious MIT in Cambridge, Massachusetts, Ayman Alashkaralso has a Bachelors Degree in Mathematics from the world-renowned Queen Mary College, University of London, and a Masters in Real Estate Investment and Development from the University of Reading (UK). With +20 yearsâ experience working in real estate, banking and artificial intelligence, Ayman is the founder and CEO of overwrite.ai.
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
overwrite.ai | the AI writing assistant for estate agents | Sign up for your Free 7 Day Trial.
There’s a growing problem with online real estate marketing. And it’s your problem.
Anyone that’s spent more than a minute browsing one of the UAE’s real estate portals, will know that it’s full of cookie cutter listings of cookie cutter properties.
What’s worse. Many of them are phishing ads.
Consumers are bored of your content.
You’re paying thousands every month, to publish listings that nobody spends time reading. The portals don’t care. They’re taking your money. So who’s the sucker?
Copy. Paste. Repeat.
It’s no different on social media. The same photos. Captions. And hashtags. Bland as a block of concrete.
Check out these examples.
A Personal Favourite
One strapline that could claim the title of most overused real estate statement ever, is:
“Arguably the best deal on the market…”.
Said Every Real Estate Agent, Everywhere.
Real Estate agents can’t get enough of this phrase.
We’re not saying it’s completely off-limits. But when you really want your property listing to work for you, youâve got to stand out from the crowd. âAmazingâ. âOne of a kindâ. âArguably the bestâ. They’re all so Meh! đ
You need to Boss-Level your listing content.
While fly-through videos and professional imagery is attractive, remember one fact. You can’t publish a listing with videos and images alone.
You need the…
…Power of Words
Words have power. Their meaning crystallizes perceptions that shape our beliefs, drive our behaviour, and ultimately, create our world. Their power arises from our emotional responses when we read, speak, or hear them.
Harness that power.
Grab your audience’s attention and don’t let go. Make them want you to tell them more about your property.
Here’s how to use Power Words That Pop!
Better than the alternative?
Ditch the dull. Dump the dreary.
Be passionate. You’re not submitting an MBA class paper. Genuine emotion will get you far in this business.
For example, instead of “Best in class“, use
Top-drawer
Venerable
Un-frigging-believable
Try interesting synonyms.
Instead of “Great“, use
Must-have/must-read/must-try
Winning
Crushes it
See where we’re going with this?
Jazz up your intros. For example, instead of “XXXX Agency is proud to introduce…?” – (God how boring!), use:
Warning! This property elicits postcode envy.
This place brims with positive energy.
You can skip over this property, but you’ll be the one kicking yourself later for it.
Hook words
Get creative. Sprinkle these into your listing descriptions and chances are you’ll hit a chord with your audience.
A kitchen that’s perfect for releasing your inner gourmet guru.
A property with skyline views that’ll take your breath away.
An infinity pool that you didn’t know you needed.
Or don’t bother.
Save yourself all that hassle. And get yourself signed up to overwrite.ai | The AI Writing Assistant for Real Estate Agents.
Looking for more creative ways to reach out to your audience? Youâre in luck.
Because at overwrite.ai, we love words.
In fact, weâve created overwrite.ai so you can drop the thesaurus completely.
Our AI Writing Assistant’s powered by a database of over 70,000 entries. Trending words, phrases, and descriptive prose. The cream of the crop of real estate lexicon. All so that you can publish engaging and search optimised listing descriptions that POP.
So all you have to do is sell (or lease) homes.
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
overwrite.ai | the AI writing assistant for estate agents | Sign up for your Free 7 Day Trial.
Elon Musk has just spent a mind-blowing $44 Billion on acquiring Twitter.
The Deal of the Year needs no introduction.
Twitter, arguably the internetâs most influential social media platform, is under the control of the worldâs richest person.
And he’s now considering monetising it for commercial users.
âI (sic) want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.”
Elon Musk , Twitter Post
But forget all that.
The real question is, will Elon give Donald Trump a Twitter Board Seat?
Elon Musk âvehemently opposed Twitter banning Donald Trumpâ
Have your sayâŚ.
Take a second to tell us what you think, or hope, will happen…
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
overwrite.ai | the AI writing assistant for estate agents | Sign up for your Free 7 Day Trial.
Appetite for Dubai luxury residential units among investors and homeowners is hitting an all-time high.
From 2021 to date, luxury residences by all major developers in Dubai have been fully sold out, and are now trading at a premium on the secondary market.
This is a marked difference from what was witnessed during the Covid pandemic.
At the height of the pandemic, every luxury residential unit worth more than $1 million was considered by many brokers to be a burden on the real estate market in Dubai, and premium properties were barely selling.
During Covid, Dubai turned into a predominately buyerâs market. In 2020 and 2021, most investors adopted a buy-to-let model, purchasing small-scale, low-ticket units in bulk to achieve a higher return on investment.
Tourism was primarily driven by low-income investors who were more likely to opt for smaller, affordable units.
Post-Covid era sees investor interest increase in luxury properties
With the pandemic coming to an end, all that is changing. More and more people, especially millionaires, are moving to Dubai with their families and investing in holiday homes and permanent residences.
According to New World Wealth, Dubaiâs population of high-net-worth individuals (HNWIs) soared to 54,000 HNWIs in June 2021 from 52,000 in December 2020, achieving a growth of 3.8 percent.
This column does not necessarily reflect the opinion of overwrite.ai and its owners.
Author, Anup Oommen, is a Middle East Journalist and Digital Editor for Arabian Business
This story has been published without modifications to the text. Only the headline and cover image has been changed.
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
overwrite.ai | the AI writing assistant for estate agents | Sign up for your Free 7 Day Trial.
Bad Real Estate Agents. Unfortunately they’re out there. There are those that lack training. Those with limited experience. Poor local community knowledge. Zero negotiation skills. Pushy sales techniques.
Not every agent is a bad apple. Many are ethical, informed and professional. Genuinely intent on finding the best possible outcome for their clients.
Language is at the heart of human intelligence. It is the basis of our communication. It is therefore at the heart of our efforts to build artificial intelligence. No sophisticated AI can exist without mastery of language.
And the field of language AIâalso referred to as natural language processing, or NLPâhas undergone breathtaking advances over the past few years.
We now stand at an exhilarating inflection point in human history.
Where Language AI is poised to make the leap from academic research, to widespread real-world adoption. Generating billions of dollars of value, and transforming entire industries in the process.
Every once in a while an idea comes along that you wish you’d thought of.
In this case it was the perfect combination. Sizzling-hot, super-prime real estate. Two of (arguably) the world’s most legendary A-list sport celebs. And a phenomenal piece of dare-devil stunt marketing.
In possibly one of the craziest real estate launch stunts ever performed, Formula One racing legend David Coulthard took to the top of the Miami’s tallest residential tower to spin some donuts – 700-feet off the ground!
And to top it off, fellow sporting superstar David Beckham dropped a cool US $20M on a full-floor penthouse in the Zaha Hadid designed building.
Hark the (re)emergence of the Real Estate Crowdfunding Platform.
Real Estate Crowdfunding isn’t new. The concept’s been around for over a decade. Although now it’s enjoying a re-birth during this age of post-pandemic excess liquidity.
Let’s start at the beginning.
What is Real Estate Crowfunding? It’s the ability for retail investors (Mr or Mrs Smith) to invest nominal sums towards a direct real estate asset acquisition, via a platform that manages the transaction, the financing, and the asset, in exchange for a fee.
In plain English, ‘Invest in property for as little as $500‘.
These soundbites may sound sexy, but they’re often misleading. So together let’s take a closer look at the Pros and Cons of real estate crowdfunding:
The Pros – Why to crowdfund a real estate investment?
AccessAll Areas
The biggest benefit of real estate crowdfunding is access to dealflow.
Some years back I participated in a crowdfunded acquisition of a commercial property on London’s Oxford Street. The deal proposed that investors would earn an income yield of 2.15% (net of fees) and an IRR of 13% from the value uplift that was explained within the investment pitch. It was a 4-hear hold. I’ll tell you how it went, further down this article.
Point is, the deal was fully subscribed. Investors like me, who’d have never otherwise had the chance to participate in an Oxford Street commercial property acquisition, piled in. Access.
Small Tickets to Big Plays
Real estate is traditionally a very lumpy asset class. It takes a large amount of capital to buy a property, and ties up that money for the duration of your holding period.
Crowdfunding real estate can be done with small tickets. Enabling investors to participate in big real estate investment plays, without needing to have, or indeed lock-up, large sums of equity for long periods of time.
Liquidity – Getting your money out.
Direct real estate ownership is when you directly own a property in your name. Like your house.
Crowdfunding real estate is not direct asset ownership. It’s indirect. You will own shares in companies that are set up to buy and own the properties directly. Those shares can be sold to the other shareholders of the company, or to third party investors, via the crowdfunding platform’s internal marketplace, without the need to sell the property. Making your ability to get your money out, easier. More liquid.
Diversification
Crowdfunding investors can distribute their capital across an array of property types and sectors. That’s investment theory 101. Spread risk out strategically, across a diversified range of properties. Instead of putting equity into a residential rental investment.
Invest across a basket of residential, commercial, and retail properties. Each with their own economic and tactical opportunities.
The Cons – Why not to real estate crowdfund?
Fees
Where direct real estate investment puts you in the driver’s seat. Indirect crowdfunded investment leaves you, the retail investor, reliant on the platform you’re investing through, to manage your investment and the property. They’re putting this deal together from beginning to end. And they’re going to charge a fee.
Whether they charge a stack of them; like a sourcing fee, an admin fee, an early-exit fee, or a carry… Or they roll their remuneration into a single, seemingly innocuous ‘Administrative’ fee. The platform you’re investing through is clipping a slice of your investment for themselves, before you see a penny.
Illiquidity
Promoting crowdfunded real estate platforms on the basis of their liquidity sounds nice in theory. You’ll be told you can sell your shares in the company that owns the property, fast. And get your money out with little administrative hassle. But read the fine print.
There might be a minimum lock-in period during which you can’t exit your capital.
It’s not uncommon for a crowdfunding platform to demand the right of first refusal to buy your shares. Not a bad thing, but it won’t pay full value for them.
Often the platform will give themselves the authority to approve (or reject) any buyer for your shares that you might find on the secondary market.
Any one of these conditions, creates illiquidity. So read up on your chosen platform’s T&C’s. Know your rights.
The Unspoken Upside
Here’s the dirty little secret that crowdfunding platforms don’t want you to hear.
Before it can offer a property to its crowd of investors, a platform needs to source and secure it.
To do that, the platform either buys the property outright and flips it to the crowd. Or locks in the right to buy it at a price, then secures the crowd funding for it, at a higher price.
In both cases there’s a markup. A delta, between the price the platform secures the property for, and the price it pitches it to its crowd at.
That difference is an upfront upside, that the platform keeps for itself. It’s an immediate profit that’s coming out of your investment’s bottom line. An ethical crowdfunding platform should declare the property’s true acquisition price, source a deal for its crowd at no profit, and justifiably charge a sourcing fee for its troubles.
Beware of any platform that does not declare the true purchase price of its properties to its crowd. Especially if they’re also charging a sourcing fee. Big red flag. đĽ
The Waterfall
Remember that deal on London’s Oxford Street that I invested in years back? The one that promised a 13% IRR? Guess what ended up happening with it.
The distribution of returns didn’t play out as the platform had proposed in their pitch.
The pitch was based on a rental income uplift to be gained, from a lease renewal that was due during the investment holding period. That renewal ran into trouble. Negotiations between the property manager and tenant dragged out. Lawyers got involved. Legal fees skyrocketed. The platform didn’t distribute dividends as they’d promised. After 4 years, what was supposed to have been an IRR of 13% ended up closer to 7%.
This despite all the ‘professional’ opinions (from lawyers, property professionals etc..) that the pitch had cited at the start.
The sting in the tail is that when you’re a retail investor, sh*t falls down. It’s not the platform that’s at the bottom of the totem pole. It’s you.
The platform’s banked its upfront upside. It’s been paid all its administrative fees. All it’s got to lose is its carry fee. That’s the fee they get if things go as well as, or even better than planned. Think of it like a performance bonus.
The platform’s banked its upfront upside. It’s been paid all its administrative fees. All it’s got to lose is its carry fee. That’s the fee they get if things go as well as, or even better than planned. Think of it like a performance bonus.
But let’s face it. Things don’t always go to plan. And when it hits the fan, the only one losing…is you. Because here’s the thing about being an indirect, retail investor. You’re too small to matter. In the cascading waterfall of profit distribution, you’re last in the queue.
Let’s Wrap This Up
So, is real estate crowdfunding a good investment?
If you want to diversify your portfolio. Get in on property deals you otherwise can’t access. Put smalls sums of capital to work. Then sure. Give it a go.
BUT…read up. Know who you’re investing through and the conditions of your investment. Be aware that the platform you’re investing through is carrying little or no risk on the trade. And that they will make more profit from your money, than you will.
overwrite.ai | the AI writing assistant for estate agents | Sign up for your Free 7 Day Trial.
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
Every business person knows that feeling of putting time into negotiating deals. The art of convincing a counterparty. The excitement of getting a deal to its final stage. The elation of success. The celebration.
But success isn’t always the outcome. In fact, more often than not, deals fall flat in a heap of disappointment and wasted time.
And this one negotiatingtactic that many people mistakenly use, is almost always guaranteed to throw their deal from the outset.
AI-driven writing tools are becoming a widespread phenomenon.
An AI writing assistant is software that automates the writing of one or more phases in the process of generating content for marketing purposes. AI writing assistants help with ideation, structure and even tone and style, giving marketers more time to focus on their unique skills and to brainstorm new ideas.
Due to its wide range of capabilities, an AI writing assistant can potentially make marketers’ jobs easier: It can generate content at scale while also making sure that every post has the right tone and structure according to client specifications. In addition, it can also take care of error-prone tasks such as copy editing
Many copywriters are now using AI writers to create content because software can identify the best structure and vocabulary to use, which can be a time-consuming process for copywriters. It also helps them with writerâs block by giving them new ideas on what they should write about.
AI writers are also much cheaper than human copywriters and can generate content at scale. This is thanks to their ability to learn from large sets of data and perform efficiently.
How to find the right AI assistant for your needs
So how do you know which one AI assistant is right for your business? To start, you want to think about what kind of content you need. Do you need data-rich articles with keyword-rich titles that can rank well on search engines? If so, then an automated content creator that specializes in SEO is ideal.
Alternatively, if you’re looking for something more creative and less technical, then an AI writing assistant that specializes in creative writing or emotive content may be perfect for your needs.
There are also AI assistants that specialize in designing infographics or editing video scripts.
The importance of AI in various industries
The emergence of AI has changed the way we do business. It does away with the need for human intervention in many cases, which means that there is no need for staffing and management of huge teams to handle customer service issues. For example, AI-assisted call centers can manage support tickets with accuracy and speed without requiring human labor all day long.
We will start seeing more jobs being replaced by AI as it becomes more advanced, so it’s important now to look at how AI can be used for better productivity.
Ways AI can supercharge your productivity
The way you use AI is going to depend on what your business is and what you plan to do with it. When you’re starting a startup or a company, AI can be incredibly useful. It can provide you with insights into who your target audience is and how they’re going to react to certain changes in your product or service offerings.
To work on a project, you need to have a good idea of what you want to do. In some cases, this may be as simple as just listing all of your ideas and then going from there. In other cases, it may be more difficult. That is where AI can come in â â the software will help you find the best idea for your project and help you with your workflow.
In reality, AI is already impacting businesses today. The main question is not what AI can do for a business, but rather how a business can leverage AI to improve customer experience and increase profitability. AI assistants are on the rise and they have been used for a variety of tasks from content generating to automatic translation. As more companies start using these technologies, they will change the way we work and live.
This column does not necessarily reflect the opinion of OVERWRITE.ai and its owners.
This story has been published from an online news feed without modifications to the text. Only the headline and has been changed.
overwrite.ai is an artificially intelligent content creator helping real estate agents write unique, search optimised property descriptions that sell homes.
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
What does it take to become a top real estate agent?
There’s no denying the profession is relentless; with extreme working hours, emotional roller-coasters, short-weekends, and no guaranteed income. Estate agents must be prepared, sometimes through no fault of their own, for deals to crumble at the last minute.
So, itâs no exaggeration that many of the worldâs top brokers eat, sleep and breathe real estate.
LONDON. Love it or hate it. It’s the world’s Capital city, and everyone knows it.
Last week a 7-square metre (75-sqft) microflat in a Victorian Conversion in Lower Clapton, east London, sold at auction for 80% above it’s minimum listing price.
The property packs in a bed, storage cupboard, a wash basin, a microwave under the pillow, and a wet-room with a showerhead above the toilet.
It’s believed to be the capital’s smallest ever property. Smaller than most domestic helper’s rooms in the average Dubai home.
The space between the bed and the wall is wide-enough for an average arm-span, and it comes with a foldout table for eating or working on.
But you can forget about cooking. There’s no stove included.
Just don’t say ‘mould’
This bolthole in a box, has been rented for ÂŁ800/month (US$ 1,080) to a tenant who lives elsewhere and uses it as their London pied-a-terre for one or two nights a week.
It went to auction listed at ÂŁ50,000, and yet it sold for a whopping ÂŁ90,000 (US$ 121,000). That’s nearly half a million Dirhams!
Despite an 80% excess bid, the investor that bagged it is banking a +10% gross yield, meaning they can expect payback within 10 years.
Microproperties like this represent a growing trend of tiny homes in dense metropolises, where space constraints and labour shortages are tightening supply, forcing rents and prices to increase.
Typically London’s developers would convert flats into rooms. Now the socioeconomics of demand have pulled a 180. Developers, ever in tune, are transforming rooms, however small, into flats.
Is this a red flag, marking an asset price bubble that’s about to pop?
Share your opinion in the comments below.
Mi casa su casa
overwrite.ai is an AI-assisted content creator that helps real estate agents instantly curate unique and search-optimised property marketing descriptions.
For informative and light-hearted news and views on the world of real estate, follow overwrite.ai on Instagram and LinkedIn, and keep up-to-date with our weekly NewsBites blog.
