March 2023, Dubai, UAE
Let me share a real story.
A well-known politician from a neighboring country bought an apartment in Dubai.
Price: 2.25 million dirhams.
He bought it only 14 months ago.
Two months earlier, he even renewed the lease.
On paper, things looked fine.
Then came the emergency.
He needed cash immediately.
The Problem
He wanted to sell the apartment instantly. Those days average time to sell a property was around 68 days.
He even said, “I don’t want to lose a single dirham – I want my full amount back, plus the 4% I paid to Dubai Land Department (DLD).”
For context: DLD charges 4% transfer fee every time a property changes hands. That’s money gone before you make a single dirham in profit.
But he wasn’t thinking about liquidity.
He was thinking emotionally.
The Reality
Real estate isn’t like cash.
It’s not like stocks.
It’s not like gold.
It can take weeks or months to find a buyer – even in “posh” areas of Dubai.
This politician had believed the myth:
“Property here sells in two weeks – it’s like a cash.”
Even with all my connections and aggressive marketing, it still took almost five weeks to sell. In the end, he only managed to break even. Had he not been under the pressure of an emergency, he could have sold the property at a much better price.
Before we finally got it done, I had to endure one of the most difficult conversations of my career – emotionally charged, driven by political power, and clouded by ego.
He did sell, but the process humbled him.
The Lessons
→ Liquidity matters.
Cash = instant.
Gold = semi-liquid.
Real estate = low liquidity, often 3–6 months to unlock.
→ Hidden costs eat profits.
DLD 4% fee in Dubai is real.
Government fees always take their cut first.
→ Urgency destroys value.
If you need to sell in panic, you almost never get the price you want.
→ Position doesn’t protect you.
Even politicians, CEOs, or wealthy people suffer when they ignore basic financial principles.
What You Should Do
◼ Always keep an emergency fund outside of real estate.
◼ Never assume “quick sale” is guaranteed.
◼ Factor in all transaction costs (DLD, agents, taxes) before calculating “profit.”
◼ If you’re under 55, keep long-term money in liquid or semi-liquid investments. Move into real estate later when you don’t need fast exits.
Planning Comes First
This is why I always tell people: before you invest in anything, build your Safety Net Strategy.
Read it here: 👉 The Foundation of Wealth: Your Safety Net Strategy
Your emergency fund should reflect your lifestyle and responsibilities. A single professional may only need $2,000–$3,000 in quick-access funds. A family may need $10,000–$20,000 or more. Adjust it to your reality – because emergencies don’t adjust themselves.
Real estate can build wealth.
But without liquidity planning, it can also trap you.
Wealth isn’t just about what you buy.
It’s about what you can access when life comes calling.
#MunawarAbadullah #WealthWithMunawar #WisdomToWealth #MunawarPlaybook
