Money & Me: ‘I hit big time in Dubai and now I spend $50,000 a month’

Dutch national Kristan De Graaf dismisses the idea of saving money in the bank. Instead, he is willing to take big risks and believes in the compounding power of investments.

The 30-year-old, who lives with his wife and one-year-old son in Dubai Hills, earns money through two main sources. He is the co-chief executive and founder of Elite Rentals Dubai, a supercar rental and luxury yacht charter service.

However, he makes big profits through property investments in which he and his brother buy plots of land to develop or acquire mansions and renovate them. They then sell them on at “record values”.

For instance, Mr De Graaf bought the land for the Dubai Hills property he now lives in three years ago for Dh16.5 million ($4.5 million), built a villa for Dh17.5 million and believes it is now worth Dh82 million.

He says his most cherished purchase is a Lamborghini Tecnomar 63 yacht in Dubai, for which he paid €4.6 million ($4.8 million) last year.

He has lived in the UAE since 2019 when he arrived on holiday and never left, and has a master's degree in international business management at the University of Amsterdam.

What was your first job and salary?

My first job was selling apartments to expatriates in Amsterdam and I earned €2,500 per month in 2015.

In 2019, my brother and I took over a yacht management and supercar luxury rental in Dubai. My friends were already managing the business very successfully and we took over. We initially earned around €10,000 to €15,000 net profit, or approximately Dh40,000 to Dh45,000, per month.

What are your income streams now?

We do big numbers now as the business has scaled a great deal. But luxury car and yacht rentals are just one part of what we do. Our real business is to buy land for development or mansions for renovations, and sell them. For instance, we bought a 13,500 square feet plot in Dubai Hills in 2022 for Dh16 million, spent Dh18 million on developing it and sold it for Dh82 million in 25 months. So, we made a profit of Dh48 million on this project alone.

Do you have considerable savings?

We put all our money in real estate and cryptocurrencies. I started investing in crypto in 2019 and in property three years ago. Most of my property investments are in the UAE.

Do you have any debt?

No, I don’t take any form of debt. I have strong partners behind me to support my real estate investments.

Have you ever inherited a sum of money?

No, I come from nothing. My father was an architect for superyachts. I learnt everything about money myself.

Have you faced any financial setbacks?

We faced a big tax issue in the Netherlands, which put us down very hard. But we came back from it and the incident made us very strong.

How much do you spend on your monthly expenses?

My standard expenses come up to around €50,000 per month. These are on my basic needs such as clothes, food, drinks and going out socially.

Have you started saving for retirement?

I don't save. Instead, I believe in benefiting from the power of compounding investments. I don't plan to retire because I do what I like.

Do you have an emergency fund?

Yes, it’s saved in a safe crypto wallet that can be liquidated anytime.

Do you worry about money?

Yes, when we need money or cash flow for new real estate projects. That’s the only thing we worry about.

What are your financial goals?

I want to create more awareness about the real estate projects that we undertake. I don’t have a personal financial goal per se.

What is your idea of financial freedom?

To be able to go wherever I want when I want and not stay in one place. I have already achieved financial freedom.

What are your strategies to offset inflation?

Investing in property in Dubai is great to beat inflation. Never put your money in the bank, put it in the right instruments so it will keep compounding.

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