Factors That Can Influence A Property Investment Decision
While making a decision to buy property in Dubai, many buyers ask themselves how to make the right choice! Each buyer or investor uses an evaluation grid that differs from one individual to another. A property investment decision must be carefully considered, both financially and in terms of the selection criteria. Property developers in Dubai emphasize on six factors that can greatly influence your property investment decision. This will allow you to make smarter property investment decisions and make your dream home a reality.
As the old punch line says “Location, location and location”! Choosing a nice street and a well-placed neighbourhood is essential not only when you buy property in Dubai but also if you are considering a resale. Having close amenities is a key factor for the property that you will invest in. Thus, it is necessary to study the various access routes by road along with the density of the public transport network. The other crucial criterion is the services available nearby such as, schools for those who have children, businesses and cultural or sports activities. The proximity of shops (supermarket, shopping malls) also contributes to the attractiveness of a property.
- Investment purpose: possible returns
Understanding the purpose behind buying a property can’t be emphasized enough. After calculating the amount of money spent on rent, some consider it better to buy a property for themselves. Other buyers or investors consider the rental yields that they will get from buying a property and then renting it out; especially if the property is located in a popular, touristic area with a lot of people looking to rent. Another possibility available for buyers would be to buy a property and then sell it off.
- Annual property taxes and land rates:
Mandatory expenditure and local taxes must be included in your general budget. If it is difficult to assess them precisely, you can inquire with the property tax office of the municipality and have an estimate of the amount you will have to pay. We have some good news for people looking for a property in the UAE. By investing in a property in the UAE, you won’t have to pay any annual property tax.
- The current condition of the real-estate market: supply and demand
To achieve a profitable rental investment, find out about the main trends in the local real estate market: how is the rental demand evolving? Demand for new real estate for rent is greater than supply? What are the median rents? Who are the top real estate companies in Dubai? These are all questions that should be answered by anyone looking for a property to buy.
- The upkeep of the property: Maintenance and ongoing repair
You do not necessarily think about it and yet, the cost of maintaining a property is to be studied clearly before deciding. In house, this cost is determined by the surface of the housing (will there be many rooms for cooling, to illuminate?) But also, by the exteriors (plants, trees, possibly swimming pool). In buildings, the renovation of facades, elevators, the maintenance of common areas and roofing are part of the expenses that, although shared, remain significant.
- The Professionalism of the real estate developers in Dubai
The considerable number of real estate companies in Dubai is surely a positive factor, where a good real estate agent must listen to your needs, advise you and respond effectively to all your questions. They must also be able to provide you with a list of the properties that will best suit your needs, from what they have been responsible for lately.
Once all of these key factors are ticked for you, nothing is left but to take on the adventure of real estate investment. Contacting one of the top real estate companies in Dubai will prove to be useful if you are confused about the property market that you are looking into.