The real estate sector in Dubai is poised for rapid growth in the coming years due to the boom in the banking and financial industries in different parts of the world. One of the most prominent features of the real estate in Dubai is the off plan market. Currently, there are numerous off plan properties in Dubai that are expected to be completed soon such as the Madinat Jumeriah living and Meraas Bluewaters Residences.
Here are some rules you should know before investing in real estate
- Don’t be led by emotions
Many investors make the mistake of falling in love with a property by how it looks. They then invest their money without running the numbers to ensure it has the potential to increase in value. Also, some investors end up spending more on the upfront making it almost impossible to make a profit after the purchase.
- Have enough money
Investing in real estate is not cheap but most investors enter the market without preparing adequately. There are certain unexpected costs that may require additional money on top of the buying price. For example, your tenants can cause damage that may cost you thousands of dollars. In addition, you have to be prepared for possible losses. The real estate market is never constant and sometimes the value of the property can go down. Therefore, it is advisable to have a financial cushion to handle the fluctuations.
- Don’t rent to anyone
One of the biggest challenges facing most investors is finding a good tenant. A wrong tenant could damage your property, fail to meet their rent obligation or disrespect other tenants. The process of evicting them can be long and costly. So, it is very important to do due diligence to the tenant before renting them your property.
- Invest in the right neighbourhood
You should invest in a neighbourhood where the property is likely to increase in value. Even though there is no guarantee that the property, even located in a good area, will increase in value, investing in an ideal location may increase the odds. A neighbourhood that is close to essential amenities like schools, hospitals, banks and retail outlets may be good for investment.
- Don’t let the property remain vacant for long
There are certain factors that may cause your property to stay vacant longer than expected. It may be because of poor management, too high rent, low demand and more. You should investigate further to ascertain the cause of the vacancy.