Real Estate Investing

There are so many exciting and wonderful places around the world where everyone dreams to settle down for the rest of their lives. And, Dubai is among the top few of them. In fact, it’s among the best of places for property investors to invest their money and make great profits. If you talk about UAE, in general, the country offers a lot of sunshine throughout the year and has some pristine beaches, gigantic shopping malls, desert safaris, world’s tallest building Burj Khalifa, and the man-made Palm Jumeirah Island. All these attraction not just attract tourists year round but also offer great investment opportunities for the seasoned real estate investors.

If all that isn’t enough to convince you, here we have 5 compelling reasons as to why property investment in UAE is profitable. Let’s check out!

  1. Best Investment Returns Against Property Investments

The property prices in UAE are still very low and that presents a great opportunity to the investors to make for highly profitable deals. Dubai alone is home to so many fascinating places and offers some high-end amenities as well as business facilities. Modern villas investments are so lucrative in Dubai especially on Palm Jumeirah that they can’t even be comparable to those in cities like New York and London. Also, there’s a significant increase in tourists which leads to significant demand rental and residential properties. With increasing demand, the investments are surely going to offer greater returns as years go by.

  • Growing Tourism Makes For A Strong Economy
Growing Tourism Makes For A Strong Economy

With Expo 2020 just around the corner, there’s a large number of job seekers, businesses and entrepreneurs rushing to Dubai which presents a great opportunity to generate revenue from expected visitors.

During the Expo 2020, Dubai alone expects more than 20 million tourists to land here from different parts of the world. Besides, the ever increasing attractions in the city are a major source of bringing tourists here. Sources say that the contribution of tourism to GDP was around 8.4% making it almost 117.4 billion Dh being added to country’s economy. It will also help boost employment opportunities in the country with almost 369000 jobs expected by 2024 and more individuals coming to the country and settling there.

  • Free Zones For Foreigners
Free Zones For Foreigners

Foreign investors in Dubai can make the most of free zones where they do not need residency visa and you do not have to be a citizen of UAE. Such foreign investments were allowed since 1999 in the bid to boost UAE’s economy. With free zones in place, you can invest in UAE real estate with no need of permits or anything like that. There are many foreigners who invest in commercial and residential properties and then lease it out. It helps them get a great return on their investment.

  • Low Traffic
Low Traffic Real Estate

When people buy properties, whether for office or residence, they consider the flow of traffic in the area as well. UAE offers so many secluded areas where comfortable living experience can be enjoyed without having to get annoyed by all the buzz created by vehicles passing by. So, that makes one good reason for people to buy properties or rent them in UAE. And, with this increasing demand, investors certainly have a great opportunity to make profit with their real estate investments.

  • Housing Is In Demand
Real estate demand

Investments in the real estate sector, particularly in Dubai, in coming years would definitely present opportunities to turn fortunes because the country expects large influx of visitors. Furnished apartments available on shorter-term lease, inexpensive hotel apartments or commercial spaces make the best investments right now in UAE. In fact, they won’t see a decline in demand in coming years and the investment would remain safe and highly profitable.

So, all that means you can expect profitable trades and huge ROI should you invest in the real estate properties now. Better find luxury accommodations in Dubai with the help of an agency and start making profits with it.

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The stock market is tumbling and most of the mortgage lenders are going out of business due to the credit crisis. In such a situation many people are having problems in investing in the real estate. Getting traditional mortgage from banks and lenders is becoming tougher because they now require 800%2B credit scores, personal guarantees, and collateral as a guarantee up to 40% of the purchase price. Most of the lenders are not willing to lend money in the market.

In such a situation, what should a real estate investor do? Private real estate money is the answer. Private real estate money can be used to purchase real estate investments. This kind of money is borrowed from the private individuals instead of borrowing money from the banks or other commercial lenders. Private lenders can be any ordinary person such as a doctor, lawyer, accountant, business owner, and possible retired person. Most of these private lenders are looking for better returns on investments than they can typically get from a bank CDs, money markets or even bond investments. Over the past couple years these type investments have yielded a paltry 3% to 6% pretax rates. Private money lenders can earn up to 9% to 15% on their money from the borrowers. That’s the reason the private lenders are interested in investing in real estate investments to get good returns on their money.

Before the private lenders invest their money, they would like to know a few things about the property. These include:

1. What is the purchase price?
2. How much is the property worth once fixed up and rehabilitated?
3. What will the rehabilitation cost be?
4. How much do you want to borrow?
5. What is your exit strategy i.e. do plan to flip to a first time buyer or hold to rent?
6. When will you pay off the private investor

You may want to have a short little presentation book or business plan laid out in a professional looking format to present to a private lender that addresses these issues. This booklet will show you have a well thought out plan and help to establish credibility.

In the new era of real estate investing, you should find out the new and different ways to financing your real estate investments and private real estate money is the key to your investing future.

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