9 Property Investment Tips Every Beginner Should Know

On the surface real estate looks simple. You buy a piece of land and sell it for a profit. However, that’s not the case. Real estate is a risk-driven endeavor. You can spend thousands of dirhams on a property, and that property could be seeing dust for years. That’s why there are a couple of property investment tips every beginner should know. 

So, without further ado let’s begin.

Secure Funding to Finance Your Investment

This one’s a no brainer. You need funding before you go out to buy real estate. If you don’t have adequate funds you are likely to miss lucrative investment opportunities.  Now, someone just starting out might not have that. In that case we suggest getting investment from a financial institution or an investor.

Look for Properties With Low Market Value

As they say in real estate it’s all about location, location, location! 

Look out for foreclosures or houses that only need minimal renovations before you sell or lease them. The logic here is simple. You are buying the property below the actual value so can renovate that and turn a huge profit. 

Start as Soon as You Can

Real estate is one of the only industries that rarely stops growing. So, the best time to get started is right now. People are looking for a place to develop themselves ,they need a place to live & work so provide them property at an affordable price. 

A classic example of good old supply and demand! 

However, there’s one thing you should remember. You need to find the right property at the right price selling it to the right people.

Make Smart Decisions

Smart decisions lead to higher profits! That’s why you should always do your prep work before buying your first property. How much would the renovations cost? Who would buy this property? What’s the amount I can expect? All of these questions can potentially save you thousands of dirhams.

Set Your Goals

Here’s another Property investment tip which most beginners ignore. Before you go into real estate investment you should have a clear idea about what you want. You should have an investment plan in place which outlines everything from start to finish.  

  • The amount of investment
  • Additional costs like renovations
  • A history and forecast of the real estate market in that district

Choose Your Mentors

We recommend getting a mentor. A mentor who knows the ins and outs of the market and has been doing it for years. Don’t follow everyone’s advice. There’s huge money at stake. The right mentor will guide in finding investment opportunities that actually pay dividends.

Use Foreclosure Listing Services

Here’s another practical Property investment tip for UAE!

Foreclosure listings are a relief. They speed up the process since you don’t have to call leaders, agents, or courthouses for finding foreclosed homes. Once you start using foreclosures you’ll be able to drastically cut down time.  

At Crown Capital Finance, we’re not just mortgage brokers or financial advisors; we’re your partners in achieving financial success.

Choose Crown Capital Finance as your financial partner, and experience the difference. Let our experts guide you towards a brighter financial future!

Be a Problem Solver

Remember we were talking about supply and demand? Someone needs a house that fits their budget. You become a problem solver by providing them a solution thus earning a profit. To take things up a notch try to to understand your clients on a deeper level. 

Understand their preferences and set your pricing according to that. For example if your potential client has kids who go to school then you sell them a property which is in a safe neighborhood with a school nearby.

Be Patient

Do you know why so many people fail in real estate? They fail because real estate is a long-term commitment. If you want higher returns you’ll have to spend more time on your real estate investment. Don’t rush when buying or selling a property. Find properties that offer you the ROI benchmark you set. 

You can have 100 potential buyers and the 99th offers you 145% return. If you weren’t patient you would have sold the house to the 55th buyer who was only giving 70% return.

FAQs

Begin by conducting thorough research on the UAE real estate market. Understand  the zoning laws assessing the land’s potential for appreciation. 

Consider factors such as location, accessibility, utility availability. Future development plans in the area also determine the real estate’s value. 

Avoid neglecting due diligence, overlooking hidden costs, failing to verify legal clearances. Also don’t make decisions based solely on price without considering long-term value. 

Explore options like traditional bank loans, real estate investment groups, or partnerships. They will give you a clear understanding of the financial commitments involved.

Zoning laws dictate how the land can be used. They are in place so that the property’s zoning aligns with your intended use to avoid legal complications.

Engaging with real estate agents, legal advisors, and surveyors can provide valuable advice.

Consider holding the land for appreciation. Lease it for agricultural or commercial use to increase its value over time.

Conclusion

So, these were the few Property investment tips every beginner should know! 

Investing in real estate is a roller coaster journey! That’s why you should come prepared for the journey. 

You should have everything at your disposal before you even put a dirham on the table.

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