Have you already thought about investing in a property? As an investment or your own Apartments in Dubai? The topic is extremely complex and is currently being discuss again heatedly. Here are the most important tips for you to stimulate.
Get rich with real estate or as security in old age: the motivation to buy Apartments in Dubai one or even more real estate is different. However, the procedure should always be carefully consider and strategic. At least as many people as have become happy or rich with real estate have also become unhappy and poor with them. Therefore, it is important to be on your guard here and carefully weigh up what your goal is and what you can afford or what the property should be for.
Home or Rent?
In Dubai, the issue of owning a Apartments in Dubai is right behind one’s own car. Many start early, for example with building society contracts, to work towards their own apartment or house. The dream of your own 4 walls and living without paying rent is quite tempting. However, critical voices have become louder and louder in recent years and even prominent owners of several properties say they rent themselves. The reasons for that are obvious.
In most cases, owning a home means paying lavish installments for the loan to the bank instead of renting. In the first few years, however, very little of this is use for repayment, because it is mainly interest that is paid. When the credit slowly approaches the end, usually after 20 years and more, It is also time to take care of the windows, heating and the roof. So there are high investments, i.e. expenditures, to be made again. In addition, you suddenly have to pay for all repairs that you would otherwise just call the landlord about yourself. A reserve for repairs and maintenance costs must therefore be create parallel to the loan repayment.
A property as an investment
To buy an apartment in Dubai as an investment can be a very sensible way to build up assets over the long term or to make provisions for old age. If you are in a hurry, you either have to bring a large amount of equity with you or you are wrong here. Real estate takes time. Both the redemption (and thus the passive cash flow) and the increase in value that you can speculate on do not come overnight. You may be better off with volatile stocks or the scratch card. With the chances of a quick and high profit, your risk always increases. Nothing is free or safe.
A property to build up wealth is therefore an apartment or a house that you buy but do not live in yourself. That sounds strange at first, but it makes perfect sense. A property that you buy for yourself has to suit your living conditions. A property that you invest in, but not. I recently look at 2 apartments that I want to buy. I think both are good investments, but I don’t want to live in either of them at the moment. They are not in Berlin and are also too small for me. If you have a partner and 2 children. You will probably only move into a house or at least a 4-room apartment. As a first property, however, an apartment with 30 square meters in a student city is quite suitable.
Is a property worth it for you?
If everything fits and you have consider everything and done it correctly. You can clearly answer the question in the affirmative. But you have to find a property that you can rent out permanently at a good price and this rent covers all costs, accumulates reserves, repays the loan and ideally generates a small plus, i.e. positive cash flow for you right from the start. Here it is popular as a sense of proportion to cross out the last 3 zeros of the purchase price for the amount of the target excess. An apartment with a purchase price of 120,000 Dirham should therefore generate 120 Dirham
plus per month before taxes. That is very ambitious but feasible. You will not get rich with the 50-120 Euro surplus, that is perfectly clear. On the one hand, it is about the whole thing immediately paying off positively and, on the other hand. That money accumulates again. You can then use this for a special repayment to pay off the loan more quickly or as equity for your second property.
Which properties are suitable for you?
Big things usually start small. The same is true here too. A castle in Brandenburg or a city villa in Dubai may sound tempting, but they are expensive to buy and maintain, complicate to manage and difficult to rent out. Hip factory floors and rustic half-timber houses under monument protection sound fantastic, but are more for advance and professional real estate companies in Dubai investors. We start more modestly. The first real estate investment of a friend of mine was 3 parking spaces in the underground car park of a new building in his neighborhood. It doesn’t sound very glamorous, but the price of the invention was manageable and a parking space in Berlin doesn’t stay unlet for long. The same applies to storage space. There are tons of offices empty. I would be careful there.
Where should the property be?
The first thing my professor in Real Estate Management wrote on the board was: LAGE, LAGE, LAGE! Everyone knows by now that the situation in real estate companies in Dubai is the be-all and end-all. But it’s not just about the location in a city. But also about the city itself in which you are buying a property. In A-cities like Dubai, Abu-Dhabi and Sharjah, the prices are sometimes extremely inflate. In some parts of Dubai due to the high demand. They are sometimes 20 percent higher than the actual value of the property.
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