Thinking to invest in real estate? As one of the most lucrative and secure investments, many people have turned it into their full-time job. However; there are several factors that go into purchasing real estate and things that need to be thought over before making such a big decision.
Budget
This goes without saying but you need to have savings set aside for investments. Mortgages can be costly depending on the bank you deal with, and installments need to be made on time to avoid further penalties. Real estate prices vary depending on the location, size, developer, view and many more variables, so knowing your budget and sticking to it will make your investments go smoother.
Locations
Different locations offer different returns depending on their accessibility and surrounding hotspots. There are locations good for capital appreciation, while others offer higher rental yields. It’s important to note the differences in locations and the benefits they bring to your investment.
Developers
In Dubai, there are many developers that sometimes it gets a little confusing. Different developers will offer you different finishes, service charges and prices. It’s important to due your due diligence when researching the developer; finding out their reputation, and whether projects get handed over on time or not.
Goals
What are your goals with this investment? Is it for resale? Or is it for rent? Knowing your goals will help you determine what is the best location and project to invest in. This is the key to a successful investment.
Managing your property
It’s important to keep in mind that having an investment property means that it has to be managed. Paperwork, payments, looking for tenants, renovation, and maintenance, and some of the things you’ll have to be doing. However, there are property management options available that can help ease off the burden and give you peace of mind.
