Real Estate Investment Planning
Due to the potential for high profits, buying and owning real estate is an alluring investment strategy. Unlike stocks and bonds, you can purchase real estate with just a portion of the entire amount required up front, and you will already be regarded as the legitimate owner. Numerous master developers in Dubai provide a variety of off-plan projects with down payments as low as 5–15%. Given that mortgage rates in the UAE are currently at an all-time low of 3.5% to 3.5%, mortgages are also a good choice in this situation. In the interim, we’ll go over the top five real estate investment strategies, which include house flipping, REITs, rental properties, REIGs, and online real estate platforms.
Groups that invest in real estate (REIGs)
For those who want to profit from rental real estate without having to take on the responsibilities of a landlord, REIGs are ideal. In terms of how they function, REIGs are comparable to small mutual funds. These kinds of businesses typically buy or build a collection of apartment buildings or condominiums so that investors can purchase them through the group. The number of units that an investor may own is unlimited in the United Arab Emirates. In exchange for a specific portion of the monthly rent, the business running the real estate investment group will simultaneously assume all landlord duties, including marketing, tenant interviews, and maintenance. It is important to note that investing in REIGs necessitates a substantial sum of money as well as access to financing. One benefit of these groups is that, even if your unit is vacant, you will still make money. This is because every unit that is a part of the REIG pays a portion of the rent in order to save money during the properties’ sporadic vacancies.
Trusts for Real Estate Investment (REITs)
A corporation or trust that uses investor funds to purchase and manage real estate creates a REIT, which can be either a public or private investment fund. Although REITs are known for their high liquidity, this strategy is similar to stocks because they are bought and sold on the major exchanges. As a result, you can cash your income without a broker or a title transfer. In contrast to the aforementioned investment categories, REITs provide access to commercial real estate, including malls and offices, that is difficult for individual investors to obtain. REITs come in two varieties:
trusts for equity- Because it symbolises real estate ownership, this type is more conventional. The profit from mortgage financing of real estate is the main focus of mortgage trusts.
Why should I invest in real estate in Dubai?
Among other things that make it an attractive place to invest, Dubai is well-known for its great infrastructure, low crime rate, and large selection of residential and commercial real estate. In addition, the city provides 100% real estate ownership in freehold neighbourhoods, enabling people to rent, sell, and remodel their homes without any limitations.