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  • property investing
  • Jun 29, 2020

Expert Opinion: Buying a Property is Still a Top Choice for Investment

In today’s time and age, there are numerous ways people can invest their money and rake in profits. However, as per the UAE experts, buying a real estate property still ranks on top of investment choices.

Peter Cooper, a renowned finance columnist who has written about the Gulf finances for more than 25 years, also believes investing in the real estate sector is the right choice. As a matter of fact, he terms it as his “best lifetime investment”.

Among all the investments he has made, keeping an eye on residential properties for sale in UAE and investing in one has turned out to be the most beneficial choice for him. If this plan worked out for him, it can work out for you as well. So, in case you are planning to invest your money now or any time in the near future, always remember the fact that investment in the real estate sector is the right choice.

Based on Peter Cooper’s review of his best lifetime investment, here are some of the reasons why buying a real estate property should be your top choice when it comes to making an investment.

Earn Rent Instead of Paying

The best part of investing in a property is that it will save you from paying rent that otherwise consumes a major chunk of one’s income. You can buy a property and put it on rent. This way, you will be able to earn rent instead of paying it. You will get a continuous flow of income that can be used to meet your living expense or maintain your living standards in the UAE. Peter Cooper did the same when he gave his apartment for rent to a company.

Rise in Property Price

As stated above, Cooper has written about financial situations in the Gulf region for more than two and a half decades. His experience in terms of price fluctuation has generally been positive. Property rates in the UAE have mostly witnessed an upwards trend barring a couple of years. This ensures guaranteed returns on the investment, provided you have checked all the boxes when buying the property.

Availability of Finances

Cooper believes that a lot of people save money from their monthly income, as part of their investment plan, with the hopes of accumulating enough to invest in real estate one day. However, when that day arrives, the realization hits them that it isn’t enough to invest. In the UAE, you may not face this issue. With banks offering easy home mortgage plans, it’s easier than ever to arrange finances for making an investment. Whether you are a local or an expat, you can apply for a home mortgage to buy a residential property in the UAE. Needless to say, your employment status, history, and other details will be scrutinized before your application is granted.

As per Peter Cooper:

“The financial engineering that makes home ownership work is straightforward and easy to understand. When buying a residential property, most buyers take a large loan at a fixed point in time and make a big investment. You immediately have a serious amount of money at work on your behalf.”

It Never Goes Out of Demand

The fact that people are always going to be in need of a living space cannot be denied. Particularly in the UAE, where living standards are high, economic conditions are suitable, and plenty of employment/business opportunities for those who are seeking, investing in the real estate sector holds great prospects. A huge number of people visit the UAE every year for different purposes and they all need places to live. This simplifies that residential properties are never going out of demand.

Easy for Expats

If we look at the UAE population breakdown, most of the people living here belong to other countries. In fact, there are more Indian and Pakistani nationals as compared to UAE nationals living in the country. With more expats in the UAE, it’s given they would like to explore opportunities to buy properties here. Expats can buy properties in freehold areas and the requirements to follow are also different than that for locals. Having said that, the process is still easy and more yielding for them to make an investment in the real estate sector.

They can use a property finder Dubai platform to explore listings in freehold areas and sort the ones that interest them.

Be mindful that you are going to face backlash and criticism when you’ll share your investment plans with others. There are going to be all sorts of feedback; some positive and some demotivating as well. You need to base your decision on factual research, and real-life experience like Cooper’s, and not just vague assumptions. Also, don’t keep unrealistic expectations. Despite the fact that real estate investment is more flexible, the rate of return depends on the initial investment you have made.

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