While a real estate investment can be a great asset and a source of steady income, investing in real estate can be a very daunting task, particularly for first-time buyers.
First-time buyers should keep in mind a list of tips put together for them by Saad Audeh, Managing Director of Campbell Gray Hotels and Audeh Group.
Location Is Key
Location and accessibility is a major factor when you are looking at where to invest in a city. Whether you are buying the property for personal use or as an investment, proximity, and connectivity to social and public areas, such as main squares, good shopping areas, health facilities, and dining are always a positive factor. If you’re planning to buy and use the property for yourself, make sure the location matches your envisaged lifestyle. A trendy modern apartment in Downtown Dubai will offer a very different vibe when compared to a more sedate residential community.
Lifestyle Benefits & Amenities
Look for projects that offer access to premium lifestyle benefits, such as a swimming pool, gym, on-site car washing, and parking spaces. Make sure they have energy efficient electrical and water amenities as these will help you cut costs and increase the resale value. As with everything else, when you purchase property, make sure you get as much value as possible for your money.
Rentability & Return On Investment (ROI)
If you are looking to buy a property as an investment to sell later, you need to ensure that you will get a good return on your investment. Centrally located homes with increased lifestyle benefits are always easier to rent out or resell. Accessibility to public transport, such as metro and bus along with proximity to social and public spaces like shopping centers, schools, and medical facilities are key to being able to rent out your property later.
Short Term vs. Long Term Rentals
Long term rentals offer increased stability and a more consistent source of income. Short term rentals, on the other, had, can offer higher yields as you can renegotiate the rent with each renewal. They are also great if you plan to use the property yourself from time to time, such as during the holidays.