Chapter Thirty Two: Factors to consider before buying property in Dubai
Because of the lockdowns and shutdowns in 2020, the real estate prices greatly decreased. That caused people who had the plan to buy villas or flats postpone their decision until better financial times. From the beginning of 2021 all through the third quarter, however people got twice as much money from selling their property than in the whole of 2020 — and they sold a lot, mostly in Dubai Marina and Business Bay.
Whether you want to retire, plan to move here because of work, simply wish for a change of scenery, or think about investing in property in Dubai, it is helpful to consider the factors below:
Consider Population Growth
When considering an investment property, look at the fundamentals like population growth. When people are moving to an area in droves, the demand is high and we have a healthy market for buyers to find the right properties and get involved.
People who are interested in buying a home as an investment property should look at rent projections in the area. Properties may be hard to make profitable today, but if rental rates have a high chance of increasing, the property stands to become profitable over time. If the property is in good shape, lock in the low mortgage rate now and be diligent about raising rents as the market supports it.
Do not wait for the ‘Perfect Time’
When mortgage rates go up, the price of housing eases. It is very hard to plan the perfect time to buy. If buyers are waiting for prices to decline or for a market correction, they may be facing higher interest rates. If a prospective buyer needs housing, they should buy when they would like to. A large part of homeownership is intrinsic and not financially driven
Examine the Timeframe
In nearly every market, real estate is a great long-term investment. The biggest consideration for buyers, aside from basic affordability, is the timeframe for their investment. If you are thinking of selling in fewer than five years, you are taking a serious risk of losing equity. If your time horizon is 10 or more years, your chances of substantial value appreciation are greatly increased
Job stability in the Project area
For most families, job stability should be the main consideration when thinking about buying a home. Careers primarily dictate which area a family lives in and for how long.
Other factors include:
- The buyer’s Primary Motivation
- Watching the Market
- Migration Patterns
- Tracking economic c
- Stick to your specific criteria
- Buy your best fit
- Trust your partners
- Factor in property taxes
- Carefully Considering affordability of the property
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