If you’re wondering if buying properties for sale in Dubai is a worthy investment, read on. Rent yields in the city are high and property values will rise severalfold over time. Rental yields are also high, which makes this an asset with multifold upside potential. However, if you’re looking to buy for resale, you should wait until the economy begins to recover. The UAE is entering this recovery phase, which is expected to begin after 2020.
Buying Properties for Sale in Dubai is a Good Investment
People are investing in real estate in Dubai for various reasons. They want a family home, a vacation getaway, rental income, or to add value to their investment portfolio. Regardless of your reason, purchasing property in Dubai is a good investment. Rents in the city are very high, so you should consider purchasing a property if you can afford the monthly mortgage payments. Buying property in Dubai is a good investment for any person and every family.
The market is booming in Dubai, largely due to the great value of properties. However, before you buy a property in Dubai, you should determine what purpose you are purchasing it for. This will determine which type of property is suitable for you. There are many ways to purchase property in Dubai, including freehold and leasehold. A common way to buy property in Dubai is online. Better Homes has compiled a guide for prospective buyers to avoid common mistakes that can cost you a lot of money.
Rental Yields are High in Properties for Sale
The rental yields of properties for sale in Dubai are high, consistently more than seven per cent. These high returns place the UAE in a much higher league than several investment havens across the globe, including London, Hong Kong and Singapore. These cities have an average rental yield of just two per cent, so the rental yields in Dubai are significantly higher than these figures. In addition, there are new legislative measures in the works to encourage investors to invest in these properties.
The best places to invest in properties for sale in Dubai are those that are popular with rental investors. The International City is a good area for buy-to-let landlords, offering an average rental yield of 10.6 per cent. The other top locations for rental yields include Discovery Gardens, Al Barsha and Jumeirah Village Circle. These locations have the highest rental yields in Dubai, according to Property Finder.
Buying Properties for Sale in Dubai is A Long Term Asset
The stock market is notoriously risky, and you should be cautious about the risks involved. Instead, invest your money in a tangible asset that will increase in value over time. Real estate in Dubai has an extremely mature market, and its value will likely increase many times over. Even if you do not get a high return on investment, buying property in Dubai is a wise move.
While the cost of purchasing a property in Dubai can be expensive, it is well worth it. Property prices in Dubai can rise by 50% or more in just a few years. Moreover, the city’s real estate market is one of the most stable in the world. Due to the success of the real estate, tourism, and manufacturing industries, the economy is growing steadily. Another benefit of buying property in the UAE is that there is no property tax.
Importance of Having a Good Credit Score
Having a good credit score is important when searching for housing in the UAE, especially in Dubai. Property rates in Dubai are higher than in other emirates, and this means that you will need to make arrangements to raise the funds you need to purchase a property. Obtaining a loan is the most common method of financing property in Dubai. However, there are other ways to improve your credit score and secure the financing you need to buy a property in Dubai.
First, if you don’t have a credit history, you can work toward building one. Most major banks in the UAE offer home loans, with each bank offering different terms and conditions. The rates for home loans are updated frequently on EIBOR, which is a measure of the interest rate in the US. Because the UAE’s currency is pegged to the US dollar, local rates will fluctuate accordingly.
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