Buying real estate is much more than finding a place to call home, it has become an increasingly popular investment vehicle that delivers a consistently strong return.
Investors like a property offering them a tangible asset they can physically see. However with property becoming increasingly attractive to savvy investors wanting to build a solid portfolio for their future, there are a number of considerations that must be given when considering bricks and mortar.
Research different real estate markets: It’s important to invest in strong markets that have a renowned track record, a stable currency and are not politically volatile. However, when doing your research, don’t overlook emerging investment destinations that could deliver higher ROIs and if you are uncertain, be sure to seek the counsel of a property consultant.
Location, Location, Location, the most famous saying in the industry. This should have a huge impact on a buyer’s decision-making process. Infrastructure, transport links, proximity to shops, restaurants, schools and attractions all matter. Don’t be emotional with the purchase because ultimately it’s the long-term investment return that is important. Ensuring tenancy should be your main priority as consistent occupancy assures rental yields and if you are confident that the proposition is appealing to customers, so will potential future buyers should you choose to sell on. Think about the tenant, their wants, needs and budget and this will stand you in good stead. Once you are confident with the market and location, do your homework on the developer. It is essential to find a developer with a proven track record who delivers guaranteed quality and maintains high standards that tenants expect.
Property management and maintenance are often not just costly but also time-consuming so it’s great if your developer offers you management. This will save the daunting tasks of dealing with day-to-day problems like leaking air conditioning or broken boilers, which may take up a lot of your time. If management is included or outsourced to a third party, make sure you’re confident that the rates you are paying are consistent with the average and their commitment to your tenants will offer them the service they expect.
Happy house hunting!
The author is managing director (Middle East) of Select Property. As told to Anjana Sankar, Senior Reporter
