Investing in the right property can be a good strategy to grow your wealth, but you must know the basics before you consider making such large investments.
Here are some smart real estate investing tips to consider and key things to check before buying a property in Dubai:
Research the property
Finding the right property is perhaps the most important step of all. Whether it is a unit, an apartment, a standalone house, or a townhouse, decide the type of property you want to invest in based on your investment strategy. You will also need to take into account the different factors that will affect the bottom line, such as appeal to renters, leasing terms, interest rates, actual price, value retention over time, the age and condition of the property.
Know the surrounding area
You cannot just decide to purchase property without understanding the nuances of the surrounding area. Location is critical as it can help drive growth. It also helps to gain tenants easily and quickly if the property is being used as an investment. Determine if you want to invest in high-demand area, a neighborhood with low-cost housing or a location with good accessibility, appearance, and lifestyle amenities. Once again, this all depends on your purpose for investing.
Secure financing options for the property
Mortgage loan is the most common means of financing an investment property, but there are many other options available: home equity loans, fixed rate, and variable rate mortgage loans. These investment loan options come with different benefits and requirements; hence you need to do a lot of research to choose a finance option that suits your needs. As an expat, you will need to pay a deposit towards costs, which can go up to 40% of the property price.
Take help of a mortgage broker
If you are new to Dubai and are not sure which financing option is best for you, a good tip is to speak with a mortgage broker. These individuals can offer you the right advice, have access to different types of loans and can guide you in the right direction. This advice comes generally as a free service and brokers get paid commission by the banks when you sign a loan.
Know all the hidden costs and fees
Calculate the total cost of ownership by considering all upfront fees you must pay to the Dubai Land Department (DLD). Also keep in mind that besides the upfront fees, you must consider services charges and recurring fess that you will have to bear, such as monthly maintenance charges, DEWA fees, home and contents insurance and parking charges, among other things. Make the purchase only if you think you would be comfortable with all such hidden costs.
With a legacy of over two decades in the development of integrated and sustainable communities, and an experience that encompasses hundreds of housing units in premium locations in the UAE, Bloom Properties has built residences that continue to inspire living.