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Why invest in real estate is the Best future-proof investment?
IT GAINS VALUE BETTER THAN REAL ESTATE
We can already hear you saying that what’s wrong with real estate like the land that actually has buildings. Well, sure real estate is far from a bad investment and it is great to have some in your portfolio. Say back in 2010 you bought an apartment in the UAE and you started renting it out and putting the rent money into the bank. the amount you have made since then would depend on a lot of variables. Especially factoring in tour maintenance cost tax and renovations but a return of five to six percent a year on your original investment is considered good and that would mean a return of 50 to 60% over 10 years let’s add another 25% the increase in the UAE housing market over the same period and value the property would have gone by we end up with 75 to 85 % net return on investment.
DEMANDS GOING UP
Demand is going up and supply is staying still at this point maybe you are starting to ask why the price of the property goes up in the first place you don’t have to be an economics genius to figure this one out you just need to know a few basics like how much of something there is available supply and how many people want it demand and in the case of property it’s easy to see how these play out the world’s population is steading going up by a little over one percent a year and it’s probably going to keep on rising until around the year.
ITS EASIER TO PREDICT
It’s easier to predict than other asset classes so what makes real estate such a great long-term bet well when it comes to investing nothing is certain but let’s just say that property is about as certain as you can get compared to the stocks, shares, and commodities.
LOW MAINTENANCE
So we have just talked about how much property goes up in value and the beauty you didn’t have to maintain it change it or do anything to it. If you own an apartment and take rent from tenants there will be all kinds of things you have to take care of like maintenance anytime something breaks that’s your call.
AGRICULTURE LAND IS A GREAT INVESTMENT TOO
Agriculture land is a great investment too it’s the same principle and bigger which means more mouths to feed and farmland needed in a lot of countries vacant lots in and around the cities have mostly been taken up which means that land near cities isn’t an option for most investors but they can still invest in agricultural land.
Dubai Real Estate FAQ
These are some of the most common questions and answers about real estate.
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