The investment in the form of a property is on everyone’s lips. Why? Real estate is a good investment alternative in the long term when interest rates are as low as they are today. Will interest rates not rise again in the foreseeable future? Why shouldn’t we invest the money in Villa for sale in Dubai that promise much better returns than in “good, solid real estate”?
The fact is
Questions about questions that certainly cannot be answer in general here. The fact is: real estate investment is a good, conservative investment that some people can afford. There are very different facets of a real estate investment, which are examine in more detail here.
First of all: this guide cannot, of course, replace an individual consultation. Ultimately, everyone has to decide for themselves which investment alternative suits them and their wishes.
The fact is that real estate investments have been use by Villa for sale in Dubai consumers for many years. What types of these tangible assets are there?
The direct property for your own use
Who doesn’t dream of their own home , in which the whole family feels really comfortable, and in the long term? Anyone who wants to make their own dream home come true can make this dream come true. The cheap building money for loans for home builders and people who want to inherit or buy Villa for sale in Dubai their own home attracts many investors.
Isn’t it a dream to pay the rent into your own pocket?
It always sounds nice and solid when no one is dependent on the landlord and can design their own row house exactly as they please.
There are many advantages of owning your own property, one of which is being the owner of your own home. In addition, you can design your house exactly as it suits your own preferences.
What is the disadvantage of owning a property? Even having your own house is associate with costs. So that the property can be look after and use properly for many years, reserves should also be built up.
The condominium for capital investment?
Nothing is nicer than living in your own home, right? Then why should you buy an apartment that is only to be rent out? Quite simply: this investment model is a good tax-saving project in which the rental income serves the loan that is to be repaid on the loan for the apartment.
So far so good! Many models work very well on this basis. Finally, the property can be written off, debt interest and business expenses offset against the rental income from Villa for sale in Dubai. This is a more than solid basis, after all, the monthly rental income is also a type of retirement provision.
However, what is absolutely essential to bring as a capital investment when renting a property? The rentability should be guarante. Therefore, when it comes to real estate, whFat counts is the location, the location and again the location! This is very important for the property to generate sustainable income in the form of rental income.
Location in Dubai
Housing is not always sought after in metropolitan areas in all locations in Dubai. Good living space is relate to the work situation on site. There are many student cities in which students are always looking for accommodation for certain periods of time during their studies. In good locations like Fujairah, Dubai, Abu-Dhabi, Marina, living space is therefore usually easy to rent. But here, too, one can say: It depends.
What is a good residential area today can no longer represent this noble location in 10 years. In addition, the substance of the property is very important for whether the apartment can be rent at a good price.
Anyone who invests money in the property management of a residential complex automatically builds up reserves as a property owner. These reserves are usually sufficient to keep the property in good condition so that it can be rent out for a long time.
However, it is particularly the case with older properties that property owners have to take their own money into their own hands for the renovation so that they can rent out the apartment sustainably and at a good price.
The fact is: Renting out
A condominium can be a very solid investment. The real estate investment offers long-term inflation protection, after all, in good locations, the property can be sold again at some point, even with increases in value.
What can be a disadvantage if you own the rent property? A property is work, not every tenant is good with living space. In addition, the loan interest can rise again when the fix interest rate of the real estate loan expires.
The open real estate funds – the alternative to equity funds?
There are also secure investment funds when it comes to real estate companies in Dubai. However, equity funds often offer much better returns, even if they are subject to significantly higher price fluctuations, than solid, good real estate in the form of fund investments.
Even if you want your save money to be available daily in the form of overnight money, a few euros in interest are paid.
Are there still close real estate funds?
While the open real estate funds still represent a relatively high degree of flexibility, things look different with the close real estate funds. These funds usually only invest in 1-3 commercial properties. The risk is therefore not spread across many different properties (as is the case with open real estate funds) – on the contrary: the investor must know that his return largely depends on the rentability of the commercial property. In addition, fund managers take care of administration and leasing. Of course, these “professionals” promise that they will always act in the interests of the customer. But – does this also correspond to the facts in the long term? Don’t fund managers just want to earn their money while ripping off customers with fees at real estate companies in Dubai?