Investing in real estate for the first time can seem a very daunting task, particularly for first-time buyers. However, real estate investment can also be a great asset, and a steady income source.
Saad Audeh, Managing Director of Campbell Gray Hotels and Audeh Group put together a list of tips for first-time buyers to keep in mind when looking for real estate in the region.
Location is key
When looking at where to invest in a city, location and accessibility is key. Proximity and connectively to main squares, good shopping areas, great health facilities and dining will always be a positive whether you are buying the property for personal use or as an investment.
If buying for yourself, decide on the kind of lifestyle you'd like to be around and choose the location accordingly. For example, residential communities offer a different vibe to a modern partment in Downtown Dubai.
Should I say yes to brands?
Branded residences are a great option for first-time buyers as they are usually managed and linked to a prestigious development group and offer additional services and amenities to regular homes and apartments.
They are also a safer investment option when compared to others, especially for international investors or first-time investors, as they offer brand recognition and trust. While they tend to be slightly more expensive than others, the pros are worth the extra investment.
Lifestyle benefits and amenities
When buying property, you want to make sure to get the most out of your budget. Always look for developments that offer access to premium lifestyle benefits such as a swimming pool, gym, on-site car washing and parking spaces as well as state-of-the-art and energy efficient electrical and water amenities. These will help you save costs in the long run while also driving up resale value.
Rentability and return on investment (ROI)
If you are looking to rent out the property when you are not using it yourself, or perhaps thinking of selling it later, then you need to ensure that the development will get you a good return on investment (ROI). Homes that are centrally located and offer added lifestyle benefits will always be more attractive and easier to rent out.
In the UAE, accessibility to metro stations and bus stops along with shopping centres, schools and medical facilities is key, especially if you're looking at renting out the property later.
Short term vs. long term rentals
While long-term rental contracts offer stability, short-term rentals can offer higher yields in the long run. This is especially great if you want to use the property personally during certain periods of the year as a holiday home. Instead of keeping the property locked up for the remainder of the year, you can get some financial gain.