| Reasons to invest in Dubai Real estate during Financial Crisis
When you walk down that road of investing , you will never turn back. The returns are just too good to ignore , and your 9-5 job will never churn out more money than inflation takes away from you. Hence it is necessary to change your outlook with a changing scenario. Saving money will get you nowhere besides pay for your overpriced meal on the weekend or a new car that erodes value faster than it drives you.
Below is a brief guide to help you understand the potential of this market and enable you to become an active player in it’s success and eventually your own success. If you’ve reached this far , you are serious about investing and will be able to amass a fortune from real estate opportunities. Welcome to the world of real estate.
9 Reasons to invest in Dubai Real estate
1. Cash flow - To utilize the full potential of your real estate investment it is important to make sure you cover all avenues of wealth recovery on your investment.
2. Supply and Demand - In the simplest terms , there is always a fixed amount of land that comprises a country. In the case of the UAE this area is 83,600 sq km. With a further focus on Dubai , this area now becomes 4114 sq. km. This is fixed and cannot be changed . The population of Dubai is approximately 1.6 million , and is at an exponential growth of 6% per year. Due to this increase in population , Dubai had to begin constructing housing for the influx in 2004.
3. Appreciation - A constant demand coupled with an ever increasing requirement will ensure that not only will you cover your investment with rental income , but also that the intrinsic value of your property appreciates in the upcoming years.
4. Equity build-up - You reduce your mortgage and increase your equity with every mortgage payment made. A portion of your payment goes towards reducing the principal. The shorter the tenure of your loan, the faster the equity builds.
5. Tax free income - Dubai is very liberal and encourages investors to make the maximum return on their investments in the country.
6. Prices are at an all time low - Due to the credit crunch, world financial crisis and the general panic among the majority of the public, property prices have been dropping to all time lows. It is now possible to buy property at near 2004 prices, and everyone knows the story of people who bought then.
7. Options - There are tens of apartments and offices available for a buyer to choose from. This is the best time to shop around and consider all the options available to you.
8. Better quality of advisory and investment support - Mortgage brokers, insurance brokers and real estate brokers are working hard for your money. You are the only avenue for their businesses to thrive and they know this. With fewer transactions taking place in the market, the piece of the pie is getting smaller every day.
9. Lounger investors - There are many buyers on the market that are simply lounging and watching the situation. Some cant pull the trigger , many won’t pull it. Even more have to sell a property they own before they can buy something new.
Real estate investment is one of the least risk investment options available to you as an investor. The size of your investment has no real impact on the returns you can get. The proportions of investment to return are always directly proportionate. The yield remains the same. It is crucial to consider that you should never grab the first investment that comes along , but rather the best investment. It is necessary to pick an investment that you are comfortable with. |
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