Dubai-based Saif Mir is one of a class of investors looking to buy property in the UK while the pound is weak.
Sterling has been falling against the dollar for most of the past year, and recently tumbled to an 18-month low over fears about sluggish growth and the mounting risk of a recession in the UK
The primary schoolteacher has experience of the market and already owns more than a dozen buy-to-let homes in the UK.
He sees now as a great time to add to his portfolio, as every dirham he sends back is worth more due to the weak pound.
And he is not alone, with many other Britons based in the UAE looking for ways to take advantage of the favourable exchange rate.
The opportunity was so tempting for Mr Mir, 33, who is saving to buy land and build on it, that he recently took a loan out in the UAE to send back a bigger lump sum.
“I borrowed some money to move it back just because the rate is so good,” said Mr Mir, from West Yorkshire, where all his properties are located.
“I can pay it back from my salary at a fairly low interest rate, whereas when the rates rise, it shrinks what our money is worth.
“If you look at it from that view, it can be a significant margin.”
These margins will have to be achieved against significant economic headwinds. Inflation is rising sharply and the Bank of England recently announced a fourth consecutive interest rate rise in an attempt to control prices.
Many families are already struggling. And it is predicted there will be more hardship to come.
Mr Mir is putting preparations in place to ensure his growing portfolio is able to weather a financial storm. But for now, opportunities beckon.
Building a portfolio
Mr Mir began buying property in 2016, following in the footsteps of some of his family members back home.
“The problem was, with property you need money, you need deposits,” said Mr Mir, who recently became a father.
“You need start-up capital, especially when it comes to buying properties and refurbishing them.
“I started in 2016 but I didn’t get very far. I had only bought a couple before I started running out of money.”
He saw a move to Dubai as a way to change that, relocating there two years later in 2018 for the sunshine, generous accommodation allowance and most important of all, the tax-free salary.
He began learning as much as he could about property investing, reading books and taking online classes in the evenings and at the weekends.
“Now I have a portfolio that is worth well into seven figures,” said Mr Mir, who posts tips and videos of his properties on his Instagram account.
He is also putting together a course for fellow residents to share everything he has learnt.
Mr Mir typically focuses on two-bed terraced homes in need of renovation.
He financially stress tests each one before he buys, to ensure they can absorb interest rates of up to 6 per cent and still offer a return.
Many of the properties he owns have already substantially gone up in value. And he is taking in more in rent, thanks to rising rental prices. All of the properties are rented out.
“When we make a property available to let, we are getting around 17 inquiries per property in the first couple of days,” he said.
The prospects for the UK economy may not look great, but he is not put off.
It simply means there are more opportunities out there.
“Because most people don’t have as much disposable income as we do, as investors. We seek out opportunities where we can add value, something that is run down, something that needs £20,000 or £30,000 spending on it to bring it back to life, to raise the value and to recover the deposit.
“Because the way we do it is to buy the property, we add value to it and then we refinance it at the new value. And this allows you to borrow at the increased value and release as much as the funds as possible that you have initially invested in.”
He is currently moving all his properties on to five-year fixed rates to protect against further rises in the interest rate.
If the UK does fall into recession, he would look to reduce his tenants’ rent if they needed that help. That way he would still be taking in something. But he also has rent guarantee insurance policies in place if all else fails.
“Anything can happen, you just have to prepare for every eventuality,” he said.
Mr Mir has benefited significantly from the rising property and rent prices in the UK and weaker pound. And he may even comfortably ride out a recession, at least for a while.
Taking advantage of the weak pound
If a UAE expat was already looking to invest into property in the UK, now is a good time.
“It’s always the bigger picture. You should never just do anything because of a currency move,” said Keren Bobker, a columnist with The National who is an independent financial adviser and senior partner with Holborn Assets in Dubai.
“It could go back the other way and by the time you have bought something it will have changed anyway.”
Steve Cronin, founder of DeadSimpleSaving.com, said buying property to take advantage of a favourable exchange rate is “classic timing the market”.
“Especially if you are going to buy something that takes a long time to invest in, like property.
“You should only buy UK property if you believe in the fundamentals of the UK property market. Or you need a property in the UK,” he added.
British expats looking to take advantage of the favourable rate can however profit by moving their money back, if that is where they intend to retire.
“A lot of them have been holding their money in dollars offshore, because that’s the advice I have given them, and they have been waiting for a good time to send the money into sterling,” said Ms Bobker.
“And that’s what they are doing to take advantage of the exchange rate.
“If your goal is ultimately to be back in the UK, it makes sense to have your cash in sterling.”
The specs
Engine: 4.0-litre, twin-turbocharged V8
Transmission: nine-speed automatic
Power: 630bhp
Torque: 900Nm
Price: Dh810,000
Attacks on Egypt’s long rooted Copts
Egypt’s Copts belong to one of the world’s oldest Christian communities, with Mark the Evangelist credited with founding their church around 300 AD. Orthodox Christians account for the overwhelming majority of Christians in Egypt, with the rest mainly made up of Greek Orthodox, Catholics and Anglicans.
The community accounts for some 10 per cent of Egypt’s 100 million people, with the largest concentrations of Christians found in Cairo, Alexandria and the provinces of Minya and Assiut south of Cairo.
Egypt’s Christians have had a somewhat turbulent history in the Muslim majority Arab nation, with the community occasionally suffering outright persecution but generally living in peace with their Muslim compatriots. But radical Muslims who have first emerged in the 1970s have whipped up anti-Christian sentiments, something that has, in turn, led to an upsurge in attacks against their places of worship, church-linked facilities as well as their businesses and homes.
More recently, ISIS has vowed to go after the Christians, claiming responsibility for a series of attacks against churches packed with worshippers starting December 2016.
The discrimination many Christians complain about and the shift towards religious conservatism by many Egyptian Muslims over the last 50 years have forced hundreds of thousands of Christians to migrate, starting new lives in growing communities in places as far afield as Australia, Canada and the United States.
Here is a look at major attacks against Egypt's Coptic Christians in recent years:
November 2: Masked gunmen riding pickup trucks opened fire on three buses carrying pilgrims to the remote desert monastery of St. Samuel the Confessor south of Cairo, killing 7 and wounding about 20. IS claimed responsibility for the attack.
May 26, 2017: Masked militants riding in three all-terrain cars open fire on a bus carrying pilgrims on their way to the Monastery of St. Samuel the Confessor, killing 29 and wounding 22. ISIS claimed responsibility for the attack.
April 2017: Twin attacks by suicide bombers hit churches in the coastal city of Alexandria and the Nile Delta city of Tanta. At least 43 people are killed and scores of worshippers injured in the Palm Sunday attack, which narrowly missed a ceremony presided over by Pope Tawadros II, spiritual leader of Egypt Orthodox Copts, in Alexandria's St. Mark's Cathedral. ISIS claimed responsibility for the attacks.
February 2017: Hundreds of Egyptian Christians flee their homes in the northern part of the Sinai Peninsula, fearing attacks by ISIS. The group's North Sinai affiliate had killed at least seven Coptic Christians in the restive peninsula in less than a month.
December 2016: A bombing at a chapel adjacent to Egypt's main Coptic Christian cathedral in Cairo kills 30 people and wounds dozens during Sunday Mass in one of the deadliest attacks carried out against the religious minority in recent memory. ISIS claimed responsibility.
July 2016: Pope Tawadros II says that since 2013 there were 37 sectarian attacks on Christians in Egypt, nearly one incident a month. A Muslim mob stabs to death a 27-year-old Coptic Christian man, Fam Khalaf, in the central city of Minya over a personal feud.
May 2016: A Muslim mob ransacks and torches seven Christian homes in Minya after rumours spread that a Christian man had an affair with a Muslim woman. The elderly mother of the Christian man was stripped naked and dragged through a street by the mob.
New Year's Eve 2011: A bomb explodes in a Coptic Christian church in Alexandria as worshippers leave after a midnight mass, killing more than 20 people.
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
GREATEST ROYAL RUMBLE CARD
The line-up as it stands for the Greatest Royal Rumble in Saudi Arabia on April 27
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
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MATCH INFO
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Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
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Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
The Good Liar
Starring: Helen Mirren, Ian McKellen
Directed by: Bill Condon
Three out of five stars
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
