Talking about business, the sector taking most of the toll these days is that of property investment. Seconded only by gold and oil, the rates of property are continuously on the rise. It seems as if property investors are taking advantage of the fact that the ever-increasing world population is constantly in the need for more land, both personal and commercial. Investing in property, however, is not an easy task. It is more or less of a gamble, which you are most certainly bound to lose without professional advice and by investing in the wrong land at the wrong time.
It is best to start small
Out of the countless bits of property investment advice available these days, the first is for you to purchase a pre-formed property if you don’t have enough capital to construct your own. With a little renovation and a few touchups here and there, you can effectively mold it to your liking. Once that is done, do not put the property on market for sale or offer your Dubai Down Town apartments for rent. Of course you can sell the building or plot if you want to, but for starters it is best to work on buy-to-let approach. For one, selling property requires excellent experience in property management which the first timers don’t have; secondly, giving away the house on rent ensures good revenue over a long period of time, a blessing if you are not in need of some quick and hefty cash.
Do Not Act Greedy
Acting greedy and overtly enthusiastically does more harm than good – another bit of property investment advice that you need to pay attention to. Make sure your property is adequately priced. Look at the general property rates in the area, they will be higher in commercial zones and posh residential spots while slightly lower in suburbs and elsewhere. Also, compare the prices with other localities and with different colonies in the same region. Before setting a rental or purchase price consider the overall area of the house, number of bedrooms, number of toilets, lawn area and so forth. Needless to say, with increase in any of the above mentioned incentives, price will gradually ascend skywards. If you own a small apartment or 2-bedroom house, price it with the economical range so that students or couples don’t hesitate to take it off your hands.
Another important factor to consider is the mortgage on the property. The rental rate should be according to the mortgage implemented by the bank to ensure that the property you own doesn’t get seized by the bank in question in difficult times. Also, select the best mortgage value, allowing you some breathing space even when no-one’s living on your land.
Keep an Eye on the Proceedings
Many people commit the mistake of living far away from their property. Being a landlord, this is probably the worst you can do. To begin with, you wouldn’t be able to keep an eye on the people who are living at your place. This is especially important if the renters are notorious university student who are likely to cause severe property damage in the midst of a wild party. On the other hand, physical disconnection will also affect your potential customers due to their difficult to reach you for any structural modifications in the building. If you are there, you can plan regular visits to the rented apartment of yours and see the condition for yourself, carry out the renovations and impress the family living there to stick around for a long while.