Why invest in real estate (not only in Dubai)
To sustain an investment that survives the ups and downs of the market, you need to be diversified and ideally own shares and real estate.
Still, real estate is a much better way to invest your money than any other investment. Property investments, if done correctly, yield high returns, with capital appreciation achieved through purchases below market value. Your real estate holdings make up a significant part of your entire investment portfolio and therefore of your long-term assets.
One of the best ways to invest in real estate, even if you don’t have a lot of advance capital, is to take a small loan and buy a studio apartment or 1 bedroom apartment with an estimated ROI of at least 6% (higher ROI normally indicates a higher risk). You can find a lot of properties with high ROI on our platform.
Investors build equity by injecting equity into the property by collecting rent from tenants. Because the prices of goods and services rise over time and with inflation also the rental income from a property.
Owning an investment in a property can provide you with a long-term, stable source of income and a high return.
Real estate agencies give investors the opportunity to participate actively in the investment and give them an understanding of the underlying assets that can be improved to create more value.
Why should you consider real estate in Dubai and abroad?
After years of successful investments in stocks and shares, I have taken the plunge and added property for rent to my portfolio. Personally, I think it’s a great idea to start thinking about how to diversify our investment portfolio.
One of the great ways in which property investment is flexible is in how it can generate passive income. You can offer your house as a short-term holiday home, make long-term investments and then change your mind. Investing in real estate allows you to bypass your investment plan and change your strategy as you see fit.
Although real estate does not have as much liquidity as the stock market, this opportunity provide passive income in the future. Real estate investors have the opportunity to use their capital and benefit from significant tax advantages (especially in Dubai where you have 0% tax).
We have also written a guide on how to invest in Dubai – have a read!
Is investing risky?
Since every investment carries some risk it is important to consider the amount of money that goes into your selected property. In other articles, we recommend investing in two properties where one is low-risk and lower-ROI such as residential apartments in community areas and high-risk and high-ROI type of investments such as South Beach Holiday Homes by Emaar.
Whether you are investing in a detached house, using a rental property or buying an apartment building, you are in a stable and secure investment. In Dubai and abroad where you have a lot of expats studio apartments seem to be pretty popular.
If you get it right, real estate investments are a stable way to increase your wealth over a period of time. Unlike investing in the stock market, investing in real estate means you always have a physical asset to spend. Planning for retirement through various investments, including property, is a wise move.
This means you can top up your retirement years with income from your rental property. One of the many benefits of investing in property is that it can provide you with cashflow for retirement. It can protect your capital from inflation, provide you with tax depreciation and other income, and provide you with cashflows into retirement. Investing in real estate has a number of advantages, such as tax advantages, capital gains and dividends, as well as the opportunity to be more diversified in your investment portfolio than with other types of investment.
No discussion of real estate investments would be complete without discussing the risks involved. There is also a risk in passive real estate investments, such as holding shares in real estate-related companies, due to the risk of short-term fluctuations in the value of the property, as well as investments in real estate transactions through crowdfunding platforms, which I will discuss below. I believe that real estate is a great investment opportunity to gain wealth and security for yourself and your family and for future generations.
Use the opportunity
Real estate is a great investment because it can appreciate and provide an opportunity to instantly gain equity in an imperfect market. Property investing can be an excellent source of passive income and carries many of the same benefits as other investment strategies such as shares and bonds. I think a lot of risks have been overestimated and a lot of the benefits of real estate are glossed over when people downplay it as an investment but think like that.
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