If taken on correctly, investing in real estate can be a very lucrative source of income. There is a good reason why in the last few years, in particular, the rise in Dubai Real estate investment has occurred, often with investors using the REIT scheme. Like with any business opportunity, along with the chance of gain, there is the chance of loss, and that is why it is good to arm yourself with as much knowledge surrounding real estate investment before taking part yourself. In this article, we will be looking at 8 pieces of advice to help you invest in real estate.
Define Your Goals
OK, so you know you want to invest in real estate. But you need to further consider this with a more detailed perspective. For example, will you buy your properties and hold them, or buy and flip them? If you are buying and holding, then that means you will be renting the property out to earn income. But if you are buying the properties and then flipping them, you are going to be renovating it and then reselling for a profit. You need to decide exactly how you will be investing in your properties.
Start Small First
As this is a new venture, it makes sense to start small. This can be achieved by making sure you pace yourself. Do not buy beyond your established limits, don’t ever put your entire savings on a down payment because you could be hit with some nasty repairs on maintenance costs that could arise.
This method is when a seller finances you and the monthly payments are made to them, an alternative if going to a bank for a loan is not working out for you.
Consider a Partner
If financial assistance is a consideration, then you should look into finding a partner. If you lack the funds, a partner can help in this department. There is also potential that they can help with workloads, and maybe able to bring skilled assets to the table, such as maintenance qualities.
6, Find the Right Properties
OK, so that may seem like an obvious statement that is not even worth detailing on. But the thing is, sometimes in the heat of the moment, when we are excited to be taking on a new venture, we can overlook the simplest of things. When selecting a potential property, research as much as you can, weigh up all pros and cons, and never rush into anything for the sake of it.
Find the Right Location
By now, you are likely aware of the expression Location. Do not just focus on the merits of the property, but also look at the location it is situated in and consider if that could bring or lose value to the property, and how your investment plans may be affected due to this.
Consider Buying as an Owner Occupant
For some, buying an owner-occupant property works out well. When you are starting in real estate it can be very expensive. This is a method that breaks you in with considerably less money. You could choose to buy a primary residence and then rent out the rooms, for example. An owner-occupant load will normally require little cash down, and of course, the tenants will be paying the mortgage. Some investors may live in a home for one year before renting out the property.