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Guide: How to grow a property portfolio in Dubai

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01 Dec

One of our passions is not just to help investors buy one property, but to help them buy multiple. We love to see investors create entire portfolios and we have had many occasions where buyers have come to us asking for one property but have ended up with literally dozens.

The Dubai market is addictive and impressive, so it doesn’t surprise us when people want more. The returns are incredible and it’s hard to lose, so investors regularly keep coming back and wanting further properties.

There are three ways to build a property portfolio in Dubai, and we hope this short guide will help. If you require more information on any of the points, please get in touch and we’ll gladly share success stories and give a free consultation to anyone who wants to get involved.

1. Build through equity
One option is to simply buy lower cost properties where you have a higher ROI. You’ll get instant rent and can grow your portfolio fast. Obviously to do this you need some cash to begin with, but there are always deals and bargains in Dubai. You can look at a distressed property at an auction that is going cheap, and if you get three or four of these and spend a little renovating them, you might get a portfolio quicker than you think!

2. Build through debt
When interest rates are low (sometimes they can be as low as 2.5%) it’s a great time to borrow. If you’re making 7-8% on rent then it’s a worthwhile deal and although you have to pay the bank a chunk of money each month, you still make profit and still have a portfolio. Positive debt is debt that makes you money – so there’s absolutely nothing wrong with using this option to build your portfolio. Be warned though that available mortgage amounts will decrease as you increase your portfolio as the risk is deemed higher to the lender.

3. Build through OPM (other people’s money)

We have a saying that OPM – other people’s money – is another good way of building your presence in Dubai real estate. As we’ve said in other blogs, the payment plans available on off-plan properties are sometimes brilliant incentives, especially if they include post-handover payment plans. In some cases the post-handover amount can be more than 50%, so why would you avail bank finance when the developer is willing to lend you money directly? It’s a much simpler process. In some cases your plan can be transferred to a secondary buyer too so you can literally make money without having to shell out large amounts.

Tags: RERA Off-Plan Villa Townhouses News Blog Lifestyle Travel


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