Keys to investing in Amman, Jordan

Published: 07th November 2006
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Many people are always interested at looking at investments outside the United States but are usually scared and they have a right to be. Anytime we venture outside our comfort zone weather it is in real estate abroad, starting a business, or even speaking in front of a group of people, we become scared. The main reason is that we don't have the right information from a reliable source or it's usually someone that does not have any experience giving us advice. Humans from every culture fear the unknown. This is why when I started investing in Jordan, I had to see what the country is like and what opportunities where available. I found out real quick that it is unlike investing in the United States but is very lucrative.



I first started out with an apartment in an 8-plex unit. The majority of the citizens in Jordan live in similar units where each person will own their own unit. You have a security guard who cleans and keeps up with the maintenance that is usually paid 25 jd a month which is equivalent to about $35. Individual units in these 8-plex units vary in price depending on location. They can be the exact same unit and you can pay 4 times the price if it is in the right location. Of course over the last 3 years prices have doubled due to the demand from the 1 million Iraq's that fled their country. Individual units are usually what rent the fastest because of the reasonable rental rates.



The rental market is very strong in Amman, Jordan especially in the higher end areas of Abdoun and Deir Ghbar. For example a three bedroom apartment unfurnished will get you around 12,000 jd a year equivalent to $18,400. If furnished then you are looking around 17,000 jd a year equivalent to $24,000. Now you are probably wondering why I am quoting these prices by the year. This is the nice thing about renting to the higher end clientele which usually are from another country; it is customary to pay rent by the year. Isn't that great! Where else can you do that? I recommend renting to embassy's and to company's who are paying for there employees rent. If this is your market, do not buy property located on a busy street. This is unattractive to companies and embassy's.



The laws and court system are becoming more westernized and is becoming easier to evict someone for not paying their rent. But if you deal with the higher clientele, you shouldn't encounter any problems. Now I am sure you have allot of questions on your mind like; can you buy property in Jordan if you are not a Jordanian? How do I get started? Can I get a loan? Who can manage the property if I am not there? Is it safe to buy in Jordan with all the problems in the region? And these are all valid questions. It will be hard to go over everything but I will try to cover as much as possible but there also other investment options that I will talk about later in the article.



First of all anyone can buy property in Jordan as long as they have a valid passport. It is usually good to get familiar with local real estate agent who can guide you with the whole process. The real estate company will usually have a management division if you deal with a reputable company. Anyone that can verify their income abroad can get a loan that will give them 65% loan value. This is another reason that is fueling the economy is the banks are becoming more lenient in their lending.



One of the biggest reasons that people don't buy in Jordan is the instability of the region but this is actually what's fueling the growth. The Jordanian government has a great relationship with the United States and they have an interest that Jordan stays safe.



It is good to have property in Jordan that generates you income but the future of the money to be made is in residential luxury towers and condos in the resort town of aqaba. This is what Dubai experienced and where millionaires were made. One of the first towers that started selling in July 2006 where the Heights by Damac properties in the Abdali project. This towering 35 floor luxury tower is one of the hottest properties in Amman experiencing 35% appreciation in the first 3 months. Two adjacent 8 floor towers are also being built by Damac. These towers feature studio, one-bedroom, two-bedroom, and three-bedroom apartments. The building will also have its own gym, swimming pool, restaurants, entertainment and shopping. It is the first of its kind in Amman.



What makes this so unique that it is located in the heart of Amman and is part of the new downtown Amman in the Abdali. The area is 70% commercial and will be located few hundred yards from the new Jordan American University that will have over 4000 thousands students. This is where the demand for the one bedroom and studio apartments will come in.



Weather you buy to rent or buy to hold and sell you need someone who can guide you in the process. If you would like to receive more information about the heights go to http://www.ammaninvestmentproperties.com . If you have any questions about investing in Jordan and need help getting started, you can email me at wsamaan@alltel.net.






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