Starting a real estate gig can seem like a big thing at first, your biggest worry being what kind of property to invest in. When you initially begin looking at homes in different locations, you may come across some artistic beauties. However, the areas around them may not meet your expectations or the property can turn out to be underpaying.
There are several types of residential properties in Dubai, from single-family to apartment buildings. And for your first and all the prospect profitable gigs, picking one out can be a daunting task. You need to look for certain aspects of the property to ensure it has the potential to grow in terms of ROI. It should attract buyers when they look for a property for sale in Dubai.
Take a look at the top 4 traits that every sellable real estate property must have:
A great location is the most desirable aspect of a real estate property that sells. However, a good area isn’t one with overly expensive houses secluded, and far out in the desert.
One of the most prominent signs of a sellable property is its location, where the basic necessities of life are nearby, including schools, parks, and transport. It should be in a safe community with a low crime rate and a relatively low rent for that area. A location with high amenities and future development in the process can be more advantageous as it can provide both you and your future tenants/buyers several benefits.
Maintenance and upkeep are required for any property to not only make it sellable but livable for the renters or new owners. Thus, it is important to properly maintain the residence and have it up to the standards.
Some expensive properties and rental homes can require more maintenance than others, and the same goes for houses with centuries-old infrastructures. With these costs, you can strain your budget and earn less than you spent on the properties. So you need to find properties that require the minimum amount of the expenses necessary to have it in good condition for new residents to make a good profit out of it.
Like all other assets and expensive gadgets, it is important for your properties to increase in value over time so that it could be sold at higher rates. Now, Dubai has numerous neighbourhoods. And not of them have the same capacity to produce ROI.
So, you must do your research on the type of property and location to make sure the property you are buying has a high appreciation rate. You can find such properties in growing communities in Dubai or the locations that area thriving by new renters and buyers.
As mentioned before, your property shouldn’t cost you more than it provides. This is called a positive cash flow. There are many online tools (calculators) that you can use to find cash flow for your selected property. The rules are simple; if it is positive, give it a go. In the case it turns out to be negative, you shouldn’t buy it.
If you finding it tough to find cash flow, you can ask a real estate brokerage for valuable cash flow properties.
In a nutshell, if you need to earn ROI in the Dubai real estate market, you can’t do it if the property you have selected isn’t sellable. However, by taking into account the aforementioned factors, you will be able to find a property that can promise high yields in the time to come.