Problems in Property: Issues to Overcome as a Landlord
If you’re looking for a low risk way to earn passive income then there are few better ways than becoming a property landlord. You have money landing in your account every month with little to no work needing to be done to earn it- however it’s not always plain sailing. Here are a few things to bear in mind.
Knowing whether to accept children and/ or pets
Lots of landlords will rule out tenants with children and/ or pets due to the damage that they can cause. And it’s true, you could end up with ruined carpets, damage to walls and doors and unhappy neighbours due to noise should you accept pets or children. However, renting to a family has many benefits. They’re much more likely to settle as they tend to move around less than professional couples, meaning you’re more likely to have long term tenants.
This means less messing around finding new tenants every six months which can be expensive and result in months in between where you’re not getting any rent. With pet owners, many can be perfectly responsible and so it makes no sense to tar everyone with the same brush. You could ask to meet the pet beforehand so you have an idea about their size and temperament. You could ask for a higher security deposit to cover any potential damage. Lots of renters have pets and by excluding these people you could be missing out on good tenants.
Verifying tenants identities
It’s important you know exactly who your tenants are. If you end up needing to take legal action against them for example then their identity is crucial, plus you may want to check things like criminal history so you know exactly who you’re letting your property out to. You can verify your customers with Jumio and other ID companies, so be sure to run background checks before letting them sign on the dotted line.
Properties taking a long time to let
In most places, the rental market is strong and landlords don’t tend to have too many problems renting out their properties. However, if you are struggling and it’s taking longer than you’d hope to get a tenant then there are things you can do. First of all, improve the home- since most tenants won’t want to pay for things like replacement carpets they have to live with what’s down. And if what’s down looks awful then it could be enough to put them off.
You don’t have to spend a fortune, often new flooring and a coat of neutral paint will create a nice blank canvas that tenants can make into a home. If the place is full of old fashioned furniture, clear this out and offer it as unfurnished rather than furnished. In most cases (unless you’re renting to students) people will prefer their own items. The price is another factor, be sure that you’re not charging way over the odds based on similar properties nearby and be aware of the kind of renters that are likely to be in the area. Most working families will have a limit of what they’re able to afford, go above this and you’re at risk of pricing everyone out.Read More
What You Absolutely Have To Do Before Buying A Property Abroad
Buying a property abroad can seem like an attractive option to those who want to live permanently in another country, or even just have a holiday home to visit whenever they wish. It’s something people of all ages and circumstances do, both elderly couples and families. However, buying a property abroad certainly isn’t all sunshine and roses.
If you get it right, it can be great, but there are so many things that can go wrong if you’re not careful. By making sure you do the right things, you can minimize hassle and ensure you end up with the right property.
Below, we’ll talk about what you absolutely have to do before buying a property abroad. Take a look before you make any big decisions.
Visit The Country
You may have found a great selling site with great pictures of a property you like, but it’s totally unwise to buy sight unseen, in terms of both the property and the country. You must visit the country and location and understand the exact location you’re buying in. Things can change from town to town depending on where you buy, so doing exhaustive research and being willing to travel to find the perfect place is imperative.
Visit The Property
Visiting the property, or properties that you’ve had your eye on is imperative. It is here you will be able to make note of any repairs that you must do, and figure out how much cash you’ll actually need to plug into the property to make it livable.
Consider Renting Vs. Buying
Sometimes, buying might not be your best option. You should consider renting vs. buying if you’re not sure this is a place you’re going to want to live forever. Places like Glamour apartments can offer long term rentals so you can be sure you’re doing the right thing before you decide to buy a more permanent property.
Understand The Legal System
The legal system changes all over the place, so you must understand it before making any decisions. You should never sign paperwork in a foreign language, either. You don’t want to end up making a mistake and then get tied up into something you will struggle to get out of.
Find Somebody Who Speaks The Local Language
Finding somebody who speaks the local language is imperative if you’re truly going to understand the ins and outs of buying in a different country. This should be a good, local, independent, bilingual lawyer with no ties to the vendor, or to the estate agent or property developer. You must find someone who will act in your best interests right from the get go.
Independent financial advice is also a good idea. Don’t try to save money by skimping on this valuable help.
Understanding The Currency And How To Handle It
At some point, you will need to transfer money into your chosen currency to pay for the property. At times of currency volatility, timing can make a difference. You could save hundreds of pounds if you know to transfer at the right time, which is why the advice mentioned above is so important.
Understand The Moving Process
The moving process is stressful, wherever you’re moving to. You could get stressed moving across town, let alone to a foreign country. Understand how stressful this process will likely be, especially if you’re hoping to take lots of your belongings from home with you. Removal companies can help, but they must be trusted to get your items to where they are going without damage. Import taxes should also be considered depending on where you are moving your stuff to.
What Happens If Things Go Wrong
It’s important to note that if things go wrong, an overseas property purchase is not regulated by the Financial Conduct Authority (FCA) so you won’t be protected by the Financial Ombudsman Service or Financial Services Compensation Scheme. It can vary depending on where you are, but this is why it’s so important to get it right if you have your heart set on moving abroad. Make sure you get as much help as you possibly can, finding people who fully understand the process and speak the language to act in your best interests.
Buying property and moving abroad can sometimes be a good decision, but there’s a lot to consider and remember. This isn’t something you can do off the cuff; it requires plenty of planning and research before you go ahead. Be smart and use the advice here to get it right!Read More
Our 5 Best Home Improvement Hacks to Increase Your Real Estate’s Value
Many people miss out on the fact that you can increase the value of your home by almost forty percent by doing a few small things.
That’s right, there a number of investments put into your home that will come back to you through the sale price of your home. These are things that you can do yourself, or get them done quickly with a little professional help. Take a look at some of the best home improvement options to increase the value of your house.
5 of the Best Home Improvement Moves
Some of these options will require more effort than others, but all of them will add more value to your home. In fact, the value added to your home will vastly outstretch the money that you pay to have these things installed.
1. Install Smart Systems
Things like smart security systems and wifi thermostats are a mark of a modern home. Because these systems aren’t overly common, they make a house stand out as modern, updated, and advanced.
Most large security companies have options for smart systems, while you have the option of doing it yourself for relatively cheap. Some systems sell for as low as $150 dollars on Amazon.
This also goes for smoke detectors and other home safety measures.
Additionally, there are such things as smart door locks and smart sprinklers. The door locks are especially modern, opening only when your smartphone is in the proximity of the lock. Pretty cool, huh?
2. Refinish Cabinets
This is an easy fixer upper that can make a huge difference in terms of value. On top of additional value, you’ll also have an easier time selling your home. Time and time again, people remark that finishing cabinets is something that hugely impacts buyers.
3. Bring in Stainless Steel
People still love the stainless steel looks and feels, and it actually adds value to your home. In the kitchen specifically, seek out ways to implement stainless steel into the feel of the room.
If cost is an issue, there are sheets of stainless steel that can be placed onto the surface of whatever appliances you may want to put them on.
4. Repurpose That Storage Room
These rooms go by a lot of different monikers, but we all know what they are. Granny flats, mother-in-law-apartments, whatever you want to call them. These are rooms that are essentially separate from the main house and allow someone to live comfortably.
5. Efficiency is Key
A huge selling point with modern buyers is energy efficiency. Things like high-efficiency windows, LED lights, and different methods of conserving energy can boost your home’s value up to three percent.
Selling a House?
If you’re in the process of selling your house and need the best home improvement tips, we’re here to help. Whether you’re looking to find the best way to make a sale, or you’re interested in finding a source of passive income, there are ways to make the process easier.
If you’re in need of any help, we have all the information you need. Comment below with any questions!Read More
The 3 Marks Of A Successful Property Tycoon & Landlord
Expanding your property portfolio may become one of the wisest decisions you ever make. Purchasing new property in developing regions, or perhaps in gentrified regions can ensure that you have an unchangeable asset that only increases in value. However, managing this process can be another story. To keep on top of your property requirements, and to fit them correctly for your monetization strategy, you’ll need to work hard.
This article is focused on finding the marks of a great property tycoon, one that hopes to enter into the renting game, for shorthold tenancies or longer. No matter what value of property you own, you can be sure that these requirements will go relatively unchanged up from the bottom to the top of the renting income spectrum. You still need to provide a good service, and you still need to be present. Here’s how:
Properties are relatively stable assets, but they aren’t so reliable as to limit your need to manage them effectively. The best management results are found when you systemize your approach. Using compilation note taking programs and submission reports from each tenant can help you keep on top of maintenance issues that occur. Ensuring that you hold your end of the contract to the letter is also essential. Management can only be carried out if it does not impede the privacy and quiet enjoyment clauses you detail in the signed documents.
To achieve these aims, using a total management suite such as those found at Fort Worth – americanrealpm.com can help you reduce the hassle of your daily tasks one by one. You may find benefit here in screening your tenants appropriately, ensuring owner statements are automated and that payments are made regularly. A successful property tycoon knows how to manage affairs in systemized ways, so that their time is respected and results are both uniform and reliable.
The best landlords enjoy a stellar reputation for resolving maintenance issues as they arrive. Ensuring you keep a priority checklist and negotiate with the relevant services to ensure you manage urgent maintenance matters, and take your times with repairs that truly matter may help tenants come back time and time again, and also help you prevent damages or disrepair from escalating further in any way.
While it can be hard to accept, unfortunately any successful landlord will need to cut their losses from time to time. This is because no matter how well you vet your tenants, sooner or later you will let the wrong people in. It’s not uncommon for people with good credit reports and an affable personality to treat properties incorrectly, either through neglect, damage or perhaps a lack of regular payment.
Over time you will learn to budget for these issues as a contingency plan, so that they aren’t large enough to put you under. However, despite your best intentions and plans, it might be that you learn this the hard way sooner or later. A good tenant keeps all these relationships professional, and always thinks of the business first in these matters.
With these three markers of a successful landlord, you’re sure to begin your march to rental property tycoon on the best footing.Read More
Holiday Home With A View And No Stress
A holiday home is more than a lifestyle to aspire to. It has become a popular and highly profitable investment in the property market. Holiday homes in touristic destinations can often pay their mortgages through the income of rental activity. But when you are looking for a second home with a view, you need to shift your mindset to approach the property market with the combined responsibilities of the homeowner who will enjoy the property from time to time, and the landlord or landlady who will rent out the property when it isn’t used. The secret is to create the ideal marriage of peaceful location and popular destination.
Be savvy about the view
Ultimately, if you hope to make a profit from your holiday rentals, you need to ensure that you choose the property wisely. A house by a lake, for instance, needs to remain accessible and usable in winter, if you want to appeal to holidaymakers all the year. Similarly, a chalet in the mountains should be set in an environment that remains attractive even when the snow has melted away. When the white mountain turns gray and rocky, holidaymakers may not be tempted to rent the property. You need to consider the seasonal changes and how they affect the landscapes and the local activities.
Take your time to decide
Aside from considering the seasonal tourism in each destination, you also need to look for the most suitable real estate agent for the kind of property you are looking for. Indeed, a property with a rural view tend to be in a specific setting, from a lakefront home to a mountain chalet. Each configuration comes with responsibilities of maintenance and safety that you need to familiarize yourself with. An experienced realtor can help you understand what it really means to live with a view.
Have a team you can trust
Whether you decide to turn your holiday home into a rental business when you’re not using it, or whether you don’t want to share it with other holidaymakers, there is no denying that you might need a local-based team of experts to help you with all necessary maintenance works and renovation projects. Admittedly, while some homeowners prefer to manage their holiday home improvement projects by themselves, there are several benefits of general contracting services involvement. In the long term, you will save costs and time by working with a team of professionals.
Don’t compromise on quality
If you intend to rent your holiday home when you are not using it, it might be tempting to choose affordable furniture that you are not likely to miss if it gets accidentally damaged. However, furnishing on a tight budget can be damaging for your rental activity. Your holiday home is, first and foremost, a home for you and holidaymakers when need a break to recharge their batteries. Make sure you buy quality items that are sturdy and can take a lot of wear and tear. Additionally, do consider bringing local touches into your decor, as it gives personality to the space.
When your heart is set on purchasing a second home with a view for your vacation, you need to hit the right balance of rental business requirements and homely feeling. Working with professionals at every step of the process can help to reduce risks, but at the end of the day, the secret of a successful rental lies in building the right atmosphere.Read More
Top Cities To Live In The Sunshine State
One of the states with the fastest growing populations at the moment is Florida, the sunshine state. It is reported that around 600 people are making the move south every day, meaning that the property market and in Florida is booming. The other good news is that there are plenty of choices to choose from, when it comes to where you live in Florida. There are twenty metropolitan areas of the state, so you really can choose an area that is right for you, with all of the choice that there is. From great beaches, good business hubs, and places for culture, you are spoilt for choice. Where to choose? If you are curious about the sunshine state, then here are some of the top cities; have a read through and you might find that one of them is right for you.
If life in a little bit of a slower lane sounds right up your alley, then Naples could be the choice for you. With low crime rates and good weather all year round, it makes a good choice for people choosing to retire. Having said that, there are plenty of job opportunities in the area, so it makes a great choice for families too. The schools are top rated too, making it doubly attractive to families with school aged children.
When a lot of people think of Florida and cities, their thoughts will naturally turn to Orlando. I mean, have you even been on a trip to Florida if you didn’t visit an Orlando theme park? If you like the idea of this, but want an area that doesn’t have as many tourists, then the suburb of Orlando called Winter Springs could be the place for you. The traffic is quieter and the crime rate is low. Plus, you’re only a short drive away from Orlando.
Miami is one of the biggest cities in the state, so it isn’t going to be for everyone. But if you like the hustle and bustle of city life, then looking at Miami homes for sale could be just what you need to be doing. There will always be demand for homes in Miami, meaning property prices will rise and you’ll find it easy to resell. Plus, there are endless job opportunities in a city like Miami, was well as close access to beaches and some great nightlife.
If you like to live by the ocean but want a city with a quirky and vibrant art scene and festivals throughout the year, then Dunedin could be the place for you. It has a small town feel about it, and is a great place for being outdoors and hiking, biking, and walking. It is near to the larger city of Tampa, so you kind of get the best of both worlds.
While this list is not exhaustive, there are so many places that could make a great fit for moving and living in Florida. Just think about what is important for you, and there will be a city to match.Read More
Want a Fast Sale? Learn About the 7 Best Advantages of Selling Your House for Cash
Selling a home can be an extremely stressful process for a lot of people. From working with a real estate agent to come up with the right price for your home to allowing total strangers to walk through it, every step can be a big pain in the butt. It’s why you should consider selling your house for cash and getting everything over with as quickly as you can.
There are so many benefits you’ll get to enjoy when you make the decision to sell a home to a cash buyer. You’ll find that you’ll actually enjoy the process of selling a home more when you sell it for cash than when taking a different approach. Here are 7 big advantages of selling your house for cash.
1. You Won’t Have to Work With a Real Estate Agent
Working with a real estate agent isn’t the end of the world. Most realtors are very helpful and will do whatever they can to make a home sale go smoothly. But if you can cut a real estate agent out of the mix, that will be one less thing you need to worry about when selling your home. More importantly, it’ll be one less person that needs to get paid when your home sells.
You can collect a bigger profit by selling your house for cash on your own.
2. You Won’t Be Subjected to Closing Costs and Other Outrageous Fees
Real estate agents aren’t the only ones who are going to have their hands all over your profits once your home sells under normal circumstances. There are also going to be closing costs associated with your home sale. There might be other fees you need to pay as well, depending upon what you negotiate with the buyer of your home.
When you’re dealing with a cash buyer, none of this comes into play. You and the buyer will ultimately get a better deal when you use cash.
3. You’ll Get Access to the Cash Proceeds of Your Home Sale Right Away
Are you facing foreclosure at the moment? Or do you need to relocate yourself and your family quickly due to a job change? You don’t have weeks to wait for someone to come along and buy your home. You need someone to step up now, and that’s exactly what you’ll get when you sell your home for cash.
A cash buyer will make you an offer on your home. And if you accept it, you can sell your home and collect your cash in no time.
4. Your Home Sale Will Go Through Quicker Than It Normally Would
There is so much red tape that surrounds a normal home sale. From home inspections and attorney reviews to final walkthroughs and closings, it can take weeks and, in some cases, even months for a home sale to be finalized. That won’t be the case when you sell a home for cold-hard cash.
If you like the offer a cash buyer has made, you can accept it and push a sale through almost immediately. That alone will cut down on the stress you normally feel during a home sale and make the entire process easier to manage. A company like Otranto Real Estate will make sure you don’t have to deal with all the usual red tape that makes many home sales so difficult.
5. You Won’t Have to Worry About Your Home Sale Falling Through
There is nothing more frustrating than going through the process of selling a home, only to have the sale collapse at the last second. But unfortunately, it happens all the time to unsuspecting buyers and sellers. A buyer gets cold feet and decides to back out of a deal or a seller fails to secure the proper financing for a home. And suddenly, the deal that was originally made is dead!
When selling your house for cash, there’s a very slim chance of a deal falling through on you.
6. You Won’t Have to Tackle Any Last-Minute Repairs
Normally, if a buyer insists on you fixing something inside your home before selling it to them, you have no choice but to make repairs for them. They can back out of a deal if you refuse to do it. That’s not something that usually comes up when you’re selling your house for cash. Most cash buyers are willing to overlook minor repairs in order to take ownership of a home.
A lot of times, cash buyers are going to fix things up themselves anyway before selling your home later. So they’re not all that worried about any repairs that might need to be done following a home sale.
7. You’ll Be Able to Move On to the Next Stage in Your Life
Part of the problem with selling a home is that most sellers already have one foot out the door. They’re looking forward to moving to a new place and aren’t all that passionate about the home they’re in now. By selling your house for cash, you can skip the awkward stage in between selling one home and moving into another. You can segue seamlessly into the next stage of your life without a care in the world.
You’ll really appreciate the freedom you get when selling a home for cash. Cutting out all of the complications will work wonders for your psyche and allow you to take the next step in your life.
Consider Selling Your House for Cash Today
Are you thinking about selling your house for cash? You might generate a little bit less money by doing it. But it’ll benefit you in so many ways that you won’t even mind taking a tiny hit. Just make sure you work with a reputable cash buyer after making the decision to sell a home for cash. It’ll ensure that you get your money quickly and are able to get out of your home without encountering any issues.
Check out our blog to learn more about how to sell a home very quickly.Read More
Make a Pass at Passive Income: 10 Tips for Renting Out a House
Struggling to make your mortgage every month? Or maybe you just need a break. Perhaps you find it overwhelming to keep the household running. Perhaps you inherited a home. You can make a nice bit of extra income from renting out a house. If you choose to rent it out rather than living in it for whatever reason, there are a few ways to make it run smoothly. With some planning and care, you can rent your house and keep it rented with minimal headaches and problems. Here are a few tips to get you started.
Renting Out a House
It’s important to take the dollar sign out of the equation when getting ready to rent. Yes, you want a good price, but you need to be smart and be prepared.
1. Repair and Safety
It’s very important to have all the necessary repairs done before you show the house. Leaking taps, broken windows or torn screens, broken floor tiles and loose stairs or handrails. It not only looks better but it’s a safety issue, as well. This includes the outside, too. Repair steps, doors, cracks in the sidewalk and any eavestroughs, siding repairs and paint if needed. Make sure you have working smoke detectors and fire extinguishers in place. Check and repair any electrical outlets or faulty wiring throughout and put in new light bulbs.
2. Clean The House
Top to bottom, get the place cleaned. Hiring a professional team to clean the house makes it easier to maintain. make sure you do windows, walls, floors, everything. There can be stains and odors you are used to seeing that can turn a potential renter off. Paint the walls white or off-white. It makes it easier for people to imagine their own furniture in the room. It also looks cleaner, brighter and bigger. Shampoo the carpets or take them out of they are stained or damaged. Water damage can cause a lot of molds to grow underneath. This can cause damage to the flooring and the underlying carpet.
3. Have Proper Insurance
You will have insurance in place, but you need to have insurance to protect you and the house with tenants. It needs to cover all possibilities, including damage to the house, fire, and any potential lawsuits. You should also encourage your tenants to get their own insurance, as yours will not and should not cover them. They need to take responsibility for their own property and yours.
4. Hire a Management Company
This can take a lot of the stress out of the process. They can find your potential renters, handle all the ads, signage and prepare the leases. They will set appointments show house and finalize the deal. They also have contacts with people wishing to relocate to your city. They can prepare the house, professionally dress it and even take over the whole process of collecting the rent. They will have real estate lawyers, professionals who know what is needed and what forms, insurance and other licenses or applications you need. To help you, learn more here.
5. Tell Your Insurance and Mortgage Companies
Your bank, insurance company or financial institution need to know about the changes. Even though you will still be paying the mortgage, you should set up an account specifically for the deposits of rent. There will be additional insurance needed, and the bank needs to know about the changes. A new account to deposit the rent and security deposit will help keeps everything in order.
6. Make a Lease
This is where you can get your specific rules in place. Whether you allow smokers, pets, when the rent is due and how long they are committing to the house. You can set limits and restrictions that are needed for your own protection. This is where you set the rent, security deposit and get them to sign to acknowledge they agree to your terms. This can include noise, parking, house maintenance and the number of people living in the house.
7. Understand Your Responsibility
Talk to a professional about your responsibilities, your rights and what is expected of you as a landlord. Ask a real estate lawyer for help in drawing up the lease and general knowledge.
8. Set a Competitive Rate
You want to get a good price on the rent, but setting it too high can drive away great tenants. Setting it too low can be disastrous, as well. Check the market for what similar homes are getting. You can check any real estate listing for information about prices and see what you can expect to ask. Make some calls, check the listings and price your house accordingly.
9. Be Picky About Tenants
Don’t panic and just allow the first people in that show an interest. You want to get the right people in. Allow everyone to apply, even if you know you don’t want them. They can’t claim you discriminated against them because they have kids, even though you don’t want kids in the house. If you are searching for tenants yourself, get the word out to family and friends. Place an ad online, in a local paper or post a sign at your workplace.
10. Verify References
Run credit checks, call their references and do as much of a background check as possible. This will help weed out anyone that will be a problem down the line. Make sure they are who they say they are and are employed where they claim. This is the best way to screen out potential problems before they settle into your house.
Renting out a house to ease the mortgage or just a little extra income shouldn’t be a hassle. Do your homework, consult experts and you shouldn’t have any problems. It can be the perfect solution if you can’t sell the house but still have to pay for it. Follow the rules set in place in your area, make sure you cover yourself legally for all potential issues that may arise. For information about luxury properties or any other information, please contact us today.Read More
Why Floridian Homeowners Need To Take Climate Change Seriously
Of the fifteen major cities in the US surveyed regarding energy efficiency, Miami ranked the lowest along with Atlanta and Los Angeles. Not only do these cities rank the worst, but will also be most affected by climate change. For its inhabitants, the time to take energy efficiency seriously is now, with a steep focus on tackling the task one step at a time. From a few small steps inside the house to major property overhauls, there is much homeowners and potential homeowners can do to reduce their carbon footprint.
Homeowners May Be Doing More Harm Than Good
While consumers have been pushed to replace their appliances with energy efficient ones, newer appliances seem to place a different type of burden on the environment. Homebuyers may be tempted to do this when buying a new property. Research reveals, however, that modern appliances seem to have a shorter lifespan which places a burden on the planet, as new appliances have to be built and the old ones recycled. Those with a five-year span, even if energy efficient, places a greater burden on the environment than one with a 20-year span.
Energy Efficient Homes Have A Direct Impact On The Environment
One of the best ways homeowners can ensure that their property is energy efficient, is by taking the entire design of the property in hand. This means consulting with an eco-friendly architect or buying environmentally friendly pre-designed plans. These ensure that all matters are taken into consideration, from the materials used in the build right through to the effect the building will have on the environment. Previously, the environment was adapted to suit property development. Nowadays, consumers are becoming more aware of the benefits of putting the environment first.
Putting the environment first has other advantages as well, such massive savings on utilities. Some of the more intense designs will look at ways to use the earth’s temperature more effectively by making use of subterranean levels. The clever use of water and shade bring forth natural cooling as well, which are both welcome additions to the Florida heat and more importantly, the utility bill.
It’s All About The Numbers
Even if the environment weren’t a consideration for homeowners to make the changes, a few significant numbers might just spur them on to start the process. Homeowners can save up to $1,182 if they decide to make the necessary green changes, and potential buyers are willing to spend more than $10,000 extra on properties considered “green”. Millennials are starting to climb the ranks of homebuyers and consider opportunities that make a difference superior to those that don’t. This means for future generations to buy into the property market, green properties are essential as up to 72% of millennials base their decision on whether it can make a social or environmental difference.
Energy efficiency is no longer just a novelty, it is essential to the survival of the planet. For those who wish to soak up the sun and enjoy the splendor of Miami, the time is now to make a difference at home.Read More
Dubai – Haven for the Luxury Investor
Dubai is a city of milestones. Within the span of a few decades, this gleaming metropolis that rose out of the desert has positioned itself as one of the leading global destinations for tourism, raising a family, and property investment. But what is it about the city that makes it such a popular choice for so many people? Here are a few important things you need to know about Dubai and why you should consider investing in this thriving urban haven.
It Sits at the Centre of the World
As any real estate professional will tell you, there are only three things to consider when buying property: location, location, location. On that front, Dubai got very lucky by being perfectly positioned at the crossroads between the East and the West. Many of the major cities around the world are only a few hours’ journey from the city, which makes it convenient as a vacation spot and as a waypoint for world travelers. For businesses, this position is especially strategic as they can set up a hub in Dubai and trade with partners across the globe.
A City of Diversity
Dubai is a true melting pot of cultures, with expatriate residents comprising close to 75% of the total population. The vast majority of expats hail from around Asia, though you will definitely run across someone from every continent. Indian and British expats are the largest groups from their respective hemispheres, alongside those from the Philippines and across Africa, the Americas and Europe. In recent years, there has been a rise in the number of Chinese visitors coming into Dubai. Though mostly tourists, many are electing to find a permanent home there as well, an idea that Dubai aims to promote enthusiastically with the recent announcement that it is constructing its very own Chinatown – the largest in the Middle East.
Investment into Dubai has always been strongly encouraged, particularly in the city’s thriving real estate market. Although things did get a bit shaky after the financial collapse in 2008-2009, the market has gained ground again since 2012. New projects are being announced, especially in the lead-up to Expo 2020, a global thought and innovation exhibition held every 5 years that will be hosted by Dubai in its next iteration. The landscape is ripe for investors, both literally and figuratively, and Dubai is making effort to make investment as attractive as possible.
The legal framework of the city is set up to be fair to both investors and real estate developers. The rules and regulations that are in place ensure that neither party can default on its promises and leave the other high and dry.
Adding to that is a new ruling announced earlier this summer that will go into effect by the end of the year – investors into the UAE will be granted 10-year residence visas. This is a landmark announcement for Dubai, where residence visas are typically issued for a duration of 2 years. By increasing the scope of residency to that extent, future residents are guaranteed more stability. This will also lead to a more long-term approach to investment in Dubai, as investors will be able to see their investment mature over a longer period of time. And of course, this is a great incentive for prospective homeowners to take the leap into buying a home in the city.
Another important part of that ruling is that businesses operating within the UAE will be able to have 100% foreign ownership. Under the current rules governing businesses, it is mandatory for every company (except those operating in free zones) to have a local stakeholder. By removing this stipulation, there is much more room for homegrown businesses to come up and for multinational firms to consider making Dubai the site of their head office or regional headquarters.
Speaking of investment, property in Dubai guarantees some of the highest yields around the world. Compared to the 2% or 3% you would expect from global heavyweights such as New York, London and Singapore, Dubai properties produces an average annual yield of approximately 6%, with certain projects pushing into the double digits. If you can make the right investment, it could end up being extremely lucrative. High-end brokerages, such as private client advisory firm LuxuryProperty.com, offer expert advice based on careful market analysis to help you find the investment that will net you the most gains.
One of the great benefits of living in Dubai, and investing in the market, is that there are no taxes. Your capital can grow safely without the hassles of filing any needless paperwork. At the start of this year, Dubai introduced 5% VAT on commercial goods, but the tax has had a fairly negligible effect on costs overall. And for the present, the tax is not applicable to residential property purchases, so investors and new homeowners can breathe easy.
One of the World’s Safest Cities
Anyone living in Dubai can attest to its safety. Thanks to well-trained law enforcement and an efficient legal system, crime rates are low and have been on the decline year-on-year. There are also quite a few gated communities in the city and every building has top-notch security systems installed to keep residents feeling safe at all times. Dubai is also secure on a regional scale, remaining stable regardless of political issues that have arisen in the region. It is the ideal destination for families and singletons alike, whether you are looking to take a vacation or settle down and raise a family.
City of the Future
Dubai has attained the global status it has today in part due to the forward-thinking vision of its leaders. Never one to rest on its laurels, the city always is always looking for ways to innovate, whether in terms of its infrastructure or its lifestyle. Sustainability is one of the key initiatives that Dubai is currently focused on and is an integral aspect of the new communities and architectural projects being designed.
Dubai also has the aim of becoming the world’s first ‘smart city’, seamlessly integrating technology into everyday life to remove the hassles and hurdles typically associated with bureaucracy and to streamline interactions between the city and its residents. It is already well on the way to achieving this goal through systems currently in place to simplify government processes. Driverless trains and trams are a step closer to safer, fully automated public transport and ongoing research in practical AI will add to the growth of Dubai’s technological infrastructure.
Dubai has a knack for dreaming up the impossible and then transforming that into a reality. From the world’s largest man-made island to the tallest building in the world, there is hardly an architectural feat that Dubai will not attempt and ultimately conquer. Indeed, it is already in the process of topping itself by constructing a new tallest tower that will dwarf the current titleholder, Burj Khalifa, by almost 100m (328 feet). Other projects include Dubai Harbour, an offshore destination that will house two of the largest cruise terminals in the Middle East; Dubai Lighthouse, an architectural wonder that will be part of Dubai Harbour; and Ain Dubai, the world’s largest Ferris wheel, which is set to open to the public by the end of the year.Read More