How to prepare your rental investment project in Dubai?

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Best Real Estate Companies in Dubai – Placing your money in a home to rent it out is a good idea. But you have to respect a few basic rules and get help from professionals to find your way around.

Financial pitfalls, insoluble disputes with current or former tenants, housing that has become unsanitary … The testimonies of overwhelmed owners fill social networks. Getting rid of tens or even hundreds of thousands of euros is not trivial. Especially to invest in a real estate project for rent and which we do not benefit directly from. It is thus necessary to respect some unspoken rules to simplify life.

The first is to avoid conceiving a rental purchase in the same way as a residential acquisition for oneself. In other words, real estate brokers advise against buying a home for rent on a whim and planning for it. The tax opportunities that you will take advantage of and that will allow you to make this real estate investment require you to rent for 6, 9 or even 12 years depending on the system chosen. However, investment professionals recommend avoiding buying to lower your tax rate. High property taxes would disappoint unsuspecting homeowners.

Choose an alternative that matches your budget

The first step is to define the budget that you are willing to invest. The starting amount to buy, of course, but also the amount you can spend each month on a loan from your bank. It will be necessary to ensure to keep cash in case of unforeseen work in the accommodation or if you have to settle a dispute with your tenant. If your budget is insufficient to invest, focus on investing your savings in a Best Real Estate Companies in Dubai investment company, for example, which allows you to buy only part of the home from Dirham 500. The returns obtained will not allow you to live on it, but they can already constitute a first supplement of income.

Get support from professionals

You will then have to ask yourself a fundamental question: are you able to manage this accommodation or do you prefer to delegate management to professionals? If you are unfamiliar with the laws governing rentals, have limited time, and sometimes get pissed off, be careful: it may be best to get help from a third party. This management can be expensive (up to 8% of the rent), but it frees you from any constraint and absolves you from all responsibility. For example, it allows you to benefit from the expertise of a professional during the check-in and check-out of your tenants. This will be based on a codified tariff schedule that it will apply independently and without qualms without negotiation or possible pressure. At last,

Define the housing environment and the ideal tenant

Finally, and this is surely the most important, it is necessary to develop the profile of the typical tenant who will take possession of your home before buying it. You have to know the environment you have chosen: the region, the city and the neighborhood. Bassel Abedi, founder of the site performancelocatif.com, agrees:”It seems essential to me to go to the neighborhood, to know what kind of accommodation appeals to locals looking to rent (young couples, students, retirees, etc.), to check the means of transport available, the services offered and see if the environment corresponds to the tenant’s profile.If you buy a 3-room apartment in a dynamic city center, near bars with a bus or tram line directly leading to the university, prefer a student collocation. prefer an apartment with parking in a suburb, check that schools and many small shops are nearby. ”

Best Real Estate Companies in Dubai brokers insist on these “common sense rules”. They remind landlords of their duty to rent decent accommodation suitable for the tenant’s use. The more housing meets the needs of the profile of its ideal tenant, the less vacancy there will be, a worse nightmare for all landlords

Private homes, offices and Apartments in Dubai

About 2.5 million French people are studying at university. The demand for student housing remains high. Their profitability remains strong. If you opt for a university residence, you will still manage to rent. The Censi-Bouvard system offers you significant tax advantages: a tax reduction of 11% and a refund of VAT on the purchase price. You will need to make sure that 70% of the accommodation in the building is intended for students, commit to renting for at least 9 years and furnish your Apartments in Dubai

You can decide to give preference to commercial real estate. Up to twice as profitable, office Best Real Estate Companies in Dubai offers flexible leases where everything is negotiated, including the obligation by the tenant to pay the rent for a specified period, even if they no longer operate the premises before. the end of the term. Please note, more spacious rooms (at least 100 m²), and therefore more expensive, should be purchased. The coronavirus crisis has generalized teleworking and it is impossible to foresee a regular return of employees to their company. They might think twice before renting new office space. In short, it is a risky investment, especially if it is the first in the field.

Buy together

Real estate investment companies (SCPI) offer an interesting alternative. By investing from 1000 Dirham, you become a shareholder of a company with housing and / or offices, Apartments in Dubai, etc., in Dubai and abroad. This diversity of asset profiles mutualises risks and provides a return of around 4.5% that you will receive each quarter in proportion to your initial participation. You can sell your units whenever you want to collect cash. Finally, the SCPI is responsible for the management of property, maintenance of the premises, administrative and fiscal formalities.