Why do you need a business real estate agent in dubai?
Buying a property is not just about finding a place that you can call home. Real estate can also be a lucrative investment vehicle that can help you make a fortune. Ask any business real estate agent in Dubai and they would tell you how even amateur investors can make steady and sustainable profits by making smart investments in real estate. You can make money through residential properties, shops, offices, industrial properties, and warehouses. In Dubai, you can also make real estate investment in the leisure sector. You can also rapidly increase your profit margin by hiring professionals who are involved in property management Dubai.
In Dubai’s real estate market, investors get excellent opportunities to make significant gains. However, making money off of real estate can be challenging for those who don’t know the nitty-gritty details as well as a professional business real estate agent in Dubai would. Investing in real estate can be more complicated than investing in bonds and stocks. That is why having a company such as RiseUp by your side is crucial for your success as an investor. If you are wondering about how much money you need to begin as an investor, here’s an idea. According to industry experts, you can build a property portfolio with AED 500,000 or less!
Introduction to Dubai Real estate investment
In 1999, Dubai began allowing foreign investors to buy real estate on 99-year-long leases. However, in 2002, the ruler of Dubai and Vice President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, issued a decree, which made it possible for foreign investors to buy properties in the freehold areas in perpetuity. That is what gave Dubai’s residential market the boost it needed. While that is great news for investors, there are some secrets that you would need to know. For example, RiseUp’s legal team would tell you that the type of ownership differs from one area to another. While areas such as Dubai Investments Park tends to offer the 49 or 99-year leases, other neighborhoods like Dubai Marina provide true freehold.
A business real estate agent in Dubai will tell you that the system allows owners of all nationalities to acquire freehold properties. That means you not only own the building in perpetuity, you will also have rights over the land on which the property is built. However, when it comes to multiple occupancy properties and high-rise buildings, the practice and what it means for the owners is yet to be properly defined.
Making money with the best business real estate agent in dubai
There are several ways to make money through real estate investments. Though the basic concepts are fairly simple and easy to understand, proper implementation and strategic execution takes the finer touch of a professional. Having a basic understanding of the real estate market and how to invest is extremely necessary. If you lack that, it would be wise to hire a business real estate agent in Dubai to guide you. Besides helping you maximize your earnings through your investments, RiseUp can also help you build an impressive portfolio and limit risks. Here are some excellent ways to make money through real estate investment:
Property MAnagement & Rental properties:
This is the most basic and age old investment practice in real estate, and it is still practiced because it works! As an investor, you will buy a property and then find a tenant to rent it out to. As the owner and the landlord, you will be responsible for paying off the mortgage and maintenance costs. You would also have to keep up with the maintenance of the property.
Ideally, you will be making enough money to cover all the costs. Some owners also charge a little extra to make monthly profits right from the start. However, according to some property management Dubai companies, you should only charge as much rent as needed to cover the costs at least until the mortgage is paid. Once you have taken care of the mortgage, the lion’s share of the rent becomes your profit.
If you hire RiseUp for property management in Dubai, we will also make sure that your property’s value increases over time. That way, you will be left with a more valuable asset by the time you pay off the mortgage. Even if the property value takes a hit during a period of recession, you can rest assured that over a period of at least ten years, your property will have gained additional Capital Value, which will make it a good investment vehicle even against inflation.
There are, of course, challenges on the way. You may not find a suitable tenant in time or your tenant may cause damage to the property. Hiccups like this can leave you with a negative cash flow. That is when you will have to scramble to cover costs and mortgage payments. However, these challenges can be easily overcome with the help of a competent property manager and business real estate agent in Dubai. At RiseUp, we not only help you find the right property, but we can also help manage it, which includes finding the right tenants.
Real estate trading:
If you want to get a taste for the wilder side of real estate investment, RiseUp can introduce you to real estate trading. In essence, real estate traders are entirely different from the traditional buy-and-rent owners and landlords. Real estate traders usually buy properties, aiming to hold them for a relatively short period of time, typically around three to four months. Then they sell the property to make a profit. The technique is also known as “flipping.” The idea is to invest in properties that are either in a hot market or are extremely undervalued.
True property flippers never put money in properties that require improvements. They look for properties that have the inherent quality to help them make a profit without needing to make alterations. This type of flipping can be considered as a short-term cash investment. However, it is also a risky move. Being unable to sell the property on time can land the investor in big trouble. That is why hiring a capable business real estate agent in Dubai for trading is absolutely necessary.
Real estate investment groups:
You can compare real estate investment groups to small mutual funds. If you are interested in owning a rental property, but don’t want to bother with the responsibilities of being a landlord, this option is for you. Here, a company will buy or build a property, preferably a set of apartments, and then investors will buy through the company. The system allows a single investor to own one or more units, but the company that operates the investment groups is responsible for managing the units.
Such companies collaborate with property management Dubai companies to handle maintenance of the property along with other necessary activities such as finding and interviewing tenants, advertising vacant units and more. The company offers the service to the investors in exchange for a percentage of the rent.
Things to know to increase your real estate investment profits
If your investment property is not performing well, you might need to hire professionals involved in property management Dubai. RiseUp has helped countless investors in their journey of making a fortune with real estate. We employ several strategies to help the investors see significant returns. Our talented in-house team and their decades of experience helps us reach our goals. Here are a few tips that we think will help any real estate investor to see a strong ROI:
- If you are aiming for strong rental yields, apartments will perform better than villas and townhouses. That is because Dubai’s population is mainly composed of transient individuals with low to medium incomes. These individuals tend to look for smaller and affordable homes.
- Invest in one-bedroom or studio apartments in affordable neighborhoods. However, make sure that your chosen property offers the essential amenities, have a great transportation network, and possess an established infrastructure.
- Smaller units can be resold faster. On the other hand, if you are planning to resell, smaller units will also offer you better value than large properties. That is because the majority of Dubai’s expat population can afford to buy these smaller units if you want to release equity.
This is just a basic overview of how you can make and increase profits as a real estate investor in Dubai. The finer details will, of course, depend on the type of investment you are making and what you plan to do with that investment. If you are doing this for the first time, we cannot overstate the importance of hiring a business real estate agent in Dubai. Having the help of a company such as RiseUp will not only make your journey smooth and hassle-free, but it will also ensure that you do not make any mistakes along the way. Making the wrong move can be potentially disastrous for a real estate investor, which is why you need to be backed by professionals!