Tips to make profitable real estate investment

Real estate has been bought and rented across the world since ancient times to execute housing and business needs. Moreover, renting and selling properties can also generate good profit for asset owners. However, asset investment is documented as one of the simplest and secure ways to generate revenue. It is necessary to consider few basic things to avoid any capital losses in future. Especially for a hub city like Dubai, it becomes mandatory to make yourself aware with few essentials to guarantee profits.

Do you know why you are buying?

You need to be very sure when buying for investment purposes. Are you going to resell on higher profits or you are going to rent that unit? If renting is the next step, choosing a small apartment with one or two bedrooms will be a better choice. It makes sense as small units don’t demand huge money and time for maintenance.

Set your budget first?

If you already know your purchasing power, you will accurately estimate mortgage amount required to confirm the deal. Central Bank of UAE has decided separate percentage mortgage amount for foreign and local buyers. It is always better to work with authorized banks and institutions to avoid a bad deal.

Are you working with accredited property broker?

You might be dealing directly with homeowner, or making a deal with a broker or real estate agent. Ask them to show legal documents to prove their credibility. Inquire them to share complete Escrow account and project developer agreement. Also check agent for RERA registration.

Market research is always good

Unless you don’t research the market on your own, you can’t decide what you actually want. It not only lands you on the right choice but also helps you to compare your expectations with available options. Whether you are interested buying a residential or commercial unit, little research will help you to spot the best property.

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Location the key for success

You have just found an apartment with extremely good condition at low price. You might be thinking to finalize the deal quickly as you don’t want to lose this opportunity. Wait a minute, have you ever been to the place where the apartment is located. For investors it is suggested to buy units where rent and asset demand remains high for most of the time.

Don’t make any payments before you actually visit the site

As soon as you arrange all the funds and completed all the necessary requirements, ask your broker to inspect the site you have chosen to buy. You might have seen the exterior and interior of that unit in photographs; don’t rely on them. There are certain other things like location and lifestyle amenities which can’t be ignored while buying asset.

Be very careful while signing contract

Don’t assume everything on your own; countries have entirely different policies and legislation's. Rules and regulations are equally important for all buyers, irrespective of being local and foreigner. If some point confuses you, never hesitate to consult with lawyer.