Dubai Reality :Rationale Behind Investing in Dubai for Rental Yield

Dubai Reality : As I always reiterate, Dubai is a wonderland for real estate investors!”

Foreign investors are smart and realize the potential Dubai has in it… no other city in the world progressed as rapidly as Dubai did!

Just to give u hint at what I am pointing at… Dubai is almost a tax-free city that does not levy any harsh taxes on income or capital gains especially that come from investment in properties of any kind.

Now that I have settled where I am going to take this write-up, I will now highlight why Dubai is so lucrative for expats and foreigners who love to visit this city over and over again.

Dubai is a tax-free city which makes it very attractive for people from all over the world to work in Dubai and invest in a rental property during their job tenure there.

Foreign investors get attracted towards Dubai in search of work and like to reside in ‘Free Zones’ that cost less compared to other properties there.

Since Dubai is a hub city it is easily accessible to the world and has direct flights to any major city of the world for easy transportation and travel.

Dubai attracts tourists like a magnet! Most tourists get enamoured by the properties here and tend to purchase rental flats and apartments here in order to expand their period of stay and save exorbitant hotel costs.

Since Dubai has a really low crime rate, it is really safe for people with families looking for a rental property to stay in Dubai during their period of stay in the UAE.

Since the climate there is mostly pleasant all year, it generates a lot of apartment sales that cater to their lifestyles and beach extravaganzas since most of Dubai’s prime apartments are situated near the beach and the Dubai Marina. ( Dubai Reality insight report)

Dubai Reality

Dubai Reality

Why Does Dubai’s Rental Real Estate Remain A Good Investment Opportunity Even In Times of Financial Meltdown?

Property prices in Dubai are still inexpensive in comparison to other real estate trading hubs around the world. There is a huge potential for further growth especially in the rental properties, since prices have stabilized by 10% after a brief hike during the 2013-2014 oil price hikes.

Property investment is the best hedge fundto combat inflation! During inflation, the higher costs of debt servicing normally means additional rent for the inmates, which can spell out as profits for you as a rental property owner or investor.

At such times the higher cost of debt servicing can usually be pasted on in additional rent, while the value of the property inflates and its debt is unchanged.

Rental income from an owned property is one of the most stable sources of income in today’s world where anything can change. At least in times of difficulty while selling properties you can make money from renting out properties and earn considerable profits from it over the long term. ( Dubai Reality insight report)

Rental income never vanishes, the property only gets transferred from one tenant to the other, and the money still comes to you the same or more.

If you compare the interest on deposits or dividend shares, Dubai rental properties offer substantial 8-10% more rent returns after you deduct the maintenance fees.

Real estate properties will always have a residual value; property values can never fall to a zero unlike some shares or hedge funds of bankrupt companies. Rental properties on the other hand offer more residual value since it gives you dual income, one from the rent and one from the time you decide to sell the entire property.

Rental property is always a hybrid asset that has the income producing nature of a bond but gives you capital appreciation value like a stock.

Since real estate investments in rental properties are tangible and more comprehensive to understand their investment can be controlled according to the nature and timing of the real estate market. One day rents may be low but one smart advertising campaign can double your rent rates if you play smart.

Rental property investment is also safer than office property investment since rental tenants tend to pay rent out of fear of being evacuated but office owners may delay payments citing losses or dropped capital values.

Since Dubai’s real estate market is open to investment from foreigners unlike its share market, you should definitely look into grabbing your share of profits from investing into a rental property of good value.

Since Dubai’s banks can now lend to expats, it is easier for you to invest in a property and turn it into your own rental property with ease.

If you own the rental property, you can always use it as collateral security against any outstanding loans you may have.

For a realtor, his portfolio speaks volumes! Why not have diversification of properties you can manage show up on paper. This will add to your credibility and help your customers understand better how well you can manage funds.

Rental properties have always been a hot favorite of expats working in Dubai to call home for a limited period of time while they work there. Most of them invest their hard-earned money into good quality apartments or townhouses depending upon their salaries. As a realtor you must understand this demographic and tap into a location that offers tax-free property investments, garner high rental yield and top-notch capital appreciation from your investment. ( Dubai Reality insight report)

Go ahead! Make your move now! Play it smart to make the most of Dubai – the wonderland!”

With that, you’re all set to start looking at homes and plots in Dubai. Good luck in your property search!

Dubai Reality

Dubai Reality

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