Where to invest in real estate ?
Do you intend to occupy the accommodation? Is your goal instead to lower your taxes? Or to obtain additional income? Would you like to invest to prepare for your future retirement? It is important to ask yourself the right questions to properly define your investment strategy and the location of your investment Buy House in Dubai. If your goal is to lower your taxes , you have every interest in taking advantage of the Panel system and therefore investing in large metropolises.
What are the best cities?
The property to be rent out must adapt to your investment strategy. For dynamic profitability, Bet on studios in student cities like Dubai or Sharjah. It is also interesting to turn to the cities of UAE, which will soon benefit from the new infrastructures of the Grand Paris Express, such as La Courneuve and Le Blanc-Mensal with line 16, or even Thais and the extension of line 14. In other areas, especially in zone B1 (La Rochelle, Dijon, etc.), it is preferable to choose a large area in order to attract couples or to share accommodation of Buy House in Dubai. The price of the property will be higher, but the turnover of tenants will be lower. If it is a heritage investment, look for a property with great amenities (quality materials, top floor duplex, etc.). Locate in the heart of an attractive town.
What are the best geographic locations?
This is the essential point in real estate. The Buy House in Dubai property must be locate near public transport and shops. Ask at the town hall about the infrastructure to come in the neighborhood. Bet on cities of the future, with strong rental potential such as Villeurbanne, for example, which has experience significant demographic growth in recent years and has gain more than 20,000 inhabitants in less than 20 years according to INSEE.
How to best finance your rental investment?
Before buying Buy House in Dubai , it is important to prepare a financing plan to determine your borrowing capacity . What is my real estate project? How much can I spend on repaying a loan? At what rate level can I borrow?
Assess your borrowing capacity
To be effective, you must first assess your monthly savings capacity. How much can you spend each month on your real estate investment? With historically low borrowing rates, your personal effort rate remains very affordable. For example, for a couple whose income would be Dirham4,200 to two per month, taking out a 20-year loan of Dirham 250,000 at 1.36%, the monthly repayment installments will be Dirham 1,261 / month including Dirham 71 loan insurance.
This equates to a monthly savings for the household of 31% of their total income. As part of a rental investment, it is not always necessary to have a personal contribution. To obtain the lowest rates, here are some tips: put several banks in competition. Domiciliate your income in the bank where you choose to borrow; go through a broker.
Take stock of your cash flow to determine how much you can spend each month to pay off your mortgage . Your debt ratio should not exceed 33% of your income. Clearly explain your situation to your banker, taking care to put an end, if necessary, to other credits to which you have subscribe (consumer credit in particular). The current low interest rate environment allows you to borrow with modest income. In 2008, a household had to earn nearly Dirham 3,045 / month to obtain a loan of Dirham 150,000. Today Dirham 2,100 / month net is sufficient.
Apartments in Dubai
Take advantage of the lowest bank rates
Know that mortgage rates are historically low today. According to the CSA Housing Credit Observatory, mortgage rates are estimate on average at 1.25% in July 2020, excluding insurance costs for all durations combine. A godsend, especially when you remember that barely 5 years ago, during the same period, they exceed 2%. Initiate since the end of 2011 (3.8% on average), the drop in credit rates is making all applicants for real estate purchase more solvent through often longer loan terms and lower monthly payments. . Despite some ups and downs, rates remain low and all professionals in the sector agree that a sharp increase is not to be fear.
Profitability or asset value: which strategy to bet on?
To properly define your Best Real estate companies in Dubai strategy, you must be clear about your expectations. First and foremost, would you like to benefit from rapid and significant rental profitability? Or are you betting more on the long term, through an ideally place asset investment that will allow add value on resale? The ideal is still to reconcile the two.
Rental profitability: placing yourself in the right place
New Best Real estate companies in Dubai is, to date, one of the investments offering the highest returns. For example, a property locate on the outskirts of a dynamic agglomeration like Lyon or Bordeaux. Allows the investor to hope to obtain a gross profitability of more than 5%. The purchase price of the property is lower than in the city center for a fairly substantial amount of rent.
The investor thus benefits from lower prices than in the city center while practicing almost similar rental levels.