Common Mistakes to Avoid When Investing in Dubai Real Estate
There’s a lot that can go wrong when you talk about big-time investments. Such as those involved in the real estate sector. The industry, especially the one that thrives like Dubai’s real estate market, is always going to be teeming with options. You’ll always find a new community or neighbourhood under development offering flats, apartments, villas, townhouses and even plots for sale.
Although all these options might end up becoming good investments in times to come. People who want consistent, immediate and reliable ROI need something substantial. You can’t just go with anything that you see on the internet or heard about from a friend. Moreover, people who make the mistake of jumping to investing too soon end up risking their entire savings as well.
To avoid making mistakes, let’s take a look at the most common ones that people make when investing in real estate:
Choosing the Wrong Location
The first thing you want to do is check whether you’re looking at the right place. Since the property’s location is the fundamental aspect that sets its value, you can’t compromise on its quality.
The ideal location should be the one that offers accessibility to the main city facilities and destination points. If your location has a lot of attraction points located nearby such as the beach, amusement parks, commercial malls, etc. it will sell itself.
Even though properties that are in hot locations cost a lot. You also minimize the risk of investing in a remote location that might not see any development. This is the case with many of Dubai’s real estate options. Due to the COVID-19 setback, it’s no secret that the market has slowed down and inventory additions made for times like the Expo 2020 are lying vacant. However, this won’t be the case for much longer due to the rapid change of pace the country has adopted. To summarize it, you can definitely look for properties in Dubai South and hope for substantial ROI. That’s because the area is bound to be in demand in the coming years.
One crucial aspect of mistaking the location, especially in Dubai, is of choosing leasehold options over freehold properties. Although many people don’t like this aspect of the emirate. It’s still a law that you have to figure a way around. Since there are either leasehold or freehold zones in Dubai, you can’t go for properties in leasehold zones as you’ll never be the sole owner of the property and the land it stands on. You’ll just have the property for a maximum of 99 years and after that, you’ll lose it.
Going at it Alone
This is perhaps one of the worst mistakes people make when they think about investing in real estate. People assume that since hiring a professional will be an additional expense, they try to avoid it altogether. Moreover, they don’t consider consulting experienced investors for various reasons. It’s clear because those who do, ultimately find out that they need the help of real estate agents.
Agents do a lot in order to demand their commission. Needless to say, it’s all justified once you consider the service they provide. Not only do they speed up your process and find you ideal properties to invest in, but they also help you in officially legitimizing the whole transaction. From governmental office visits to finding property owners and researching property backgrounds, agents help you throughout the process of buying real estate.
If you’re going for apartments, flats, villas or townhouses, you can rely on them to bring about options from the best developers in the country. Similarly, if you’re hoping to make commercial or construction options, agents can research for the best shops and plots for sale in the UAE.
Not Inspecting the Property
A lot of people, in their attempts to speed up the process, often overlook the property itself. From the perspective of an investor who’s under a lot of pressure, it becomes common for people to overestimate properties and their potentials. That’s why it’s crucial that you don’t compromise on property research.
If you hire an agent, you’ll have a reliable teammate on your side whenever you go to visit the property. Not only will they help you in identifying potential damages to the property but they’ll also point out factors that will help in negotiating the price of the property as well. If the property you’re looking for has a property manager employed, chances are that they’re taking care of everything. However, it’s still your responsibility as a potential buyer to investigate everything as much as you can. These investigations should not be limited to the physical aspect of the property. They should also include the documentation and official registrations of the property as well.
So, even though these are just a few instructions, they’re crucial to be understood if you’re planning on investing in real estate. Don’t make the mistake that others made and risk all of your investment money.