Three Things to Consider When Getting an Apartment for Sale in Dubai
Are you looking for fast property in Dubai or getting any other apartment for sale in Dubai, there are many things to consider. You can consider whether the apartment for sale while has a good return on investment, the area of Dubai that you rent in, and the type of tenants you will have.
You can also consider the city. Dubai is a socially liberal oasis in a sea of socially conservative areas in the Middle East. It is home to a vibrant nightlife, multiple facilities for exercise and playing sports, multiple places for residents to relax, and many shopping malls, restaurants, and shops. The more of these there are, the richer your clients will be.
You should also consider whether you should get a villa or apartment for sale. While a villa will likely be home to one family or extended family, an apartment will usually have tenants who are not related to one another but who will cooperate to pay the rent.
If an apartment is better for you to get than a villa, read on to discover three things to consider when getting an apartment for sale in Dubai.
The first step to owning an apartments for rent, and then leasing it out, is to know how much rent you can reasonably be expected to charge. Fortunately, this is a simple task. You can use real estate websites to compare the different rents currently being charged in the area. This will give you an idea of what you can charge your tenants before the apartment is considered too expensive and you will not be able to lease it.
A general rule of thumb is the rent goes up according to the number of bedrooms and bathrooms. There are more bedrooms and bathrooms that you can charge rent. You can add to that base amount if there is more than one master bedroom and at least some of the bathrooms are en-suite.
The rent should also factor into the calculation of your return on investment (ROI) but should not be the only factor.
Another factor that should go into your calculation of your ROI is how much it will cost to maintain the property. This includes the plumbing, any broken furnishings (such as appliances), and the like. For instance, most kitchens will come sold with white goods.
Real estate firms may give you a break and offer to pay the maintenance costs for the first five years. However, after that, you will have to contract with companies. The generous firms will give you a payment plan that lasts for as long as they pay for maintenance.
The costs of the maintenance contracts and any other maintenance-related costs should factor into your calculation of the ROI. While it may be hard to project beyond the years that you do not have to pay for maintenance, you could compare current rates.
The Break-Even Point
As a landlord, you need to establish what your break-even point is, otherwise known as the point at which you overcome the initial cost of your apartment for sale. This can be primarily calculated by the total cost of the building, adding in any fees, or expected costs, and then dividing that number by the annual rent paid. This will give you the number of years it will take for you to break even with your investment.
This is especially important because, if you know the length of time it will take to break even, then you will know whether your property is a short- or long-term commitment. Some landlords like to make as much profit as they can and then sell the property to others, while other landlords prefer to hold on to the property for as long as they want.
Establishing the break-even point will also tell you how much money you can make in the years after you break even. If it is a modest gain, perhaps you would want to sell it as soon as the property becomes profitable, whereas if the property is lucrative, you can sell it whenever you would like.
Also Read: How to Increase Your Chance of Selling Your Property in 2022
Setting the rent, figuring out the maintenance costs, and knowing when you will break even are three things to consider when getting an apartment for sale in Dubai. The rent will help you figure out how much you can lease the property for vs. how much you bought it for. Maintenance costs can figure into your final ROI statement. Finally, the break-even point is when you know you are starting to make a return on investment if everything is held constant.
If you have researched properties in Dubai and like the low cost of living and high quality of life, now is the best time to become a landlord in Dubai!