Making the right decision when it comes to property investment is often about research and knowledge. Abu Dhabi based real estate professional, Kika Pavese, puts specialist knowledge at the centre of good investments.
Understanding Abu Dhabi
The UAE as a country is still growing and will turn 48 years old this year; it’s a young and ambitious country, that has gone through so many changes and developments to reach where it is today. Its capital, Abu Dhabi, is also tremendously growing and will continue undergoing changes and witness further development. The involvement of the Abu Dhabi Municipality has had a major effect on the local real estate market. As a result, this brings an extensive confidence to property investment in the area as it provides a stronger sense of legitimacy. A homeowner holding a title deed can go forward feeling secure in their ownership and investment.
Utilising the housing allowance – buying vs. renting
So many expats come to Abu Dhabi and secure a job position that comes with a significant housing allowance. Eager to have a large and comfortable place to live, it’s easy for them to pour that allowance into rental costs. It’s understandable – you bring your family over and don’t necessarily see yourself as someone who would permanently live in Abu Dhabi. While you are here, it makes sense to use the money put aside to ensure a comfortable living.
Only it doesn’t in the long-term.
Buy an apartment. Buy a studio! Even if the place is smaller than you might otherwise rent to live in, you will have a permanent investment that is putting your housing allowance to good use and the long-term advantages are enormous. The rental market in Abu Dhabi is strong and the rental yield of 8% is far higher than in other countries where you have as little as 2% or 3% return on investment.
If you decide to leave, you can rent the place out without much effort – even for short-term lets.
Beyond personal living – business investment in Abu Dhabi
When you are looking to invest in property, it’s important that you put your money in the right place. Work with an experienced agent who really knows the area. It’s incredible how much an improvement on your investment knowledge makes. This is especially true for larger scale investors who might be interested in purchasing plots of land.
If you are planning on purchasing a plot of land to build a new business project, then research and using the knowledge of a professional real estate agent is key. In fact, real estate agents can advise you what to build and where to build it, and what other developments might be planned in the area.
A good team of real estate agents communicate well and keep informed about the latest developments and news in the local market, making sure that they keep their knowledge and level of expertise strong.
As an investor, if you are coming from an overdeveloped city like London or New York, Abu Dhabi offers opportunities you have never even considered. How often in another capital city would you be able to find an empty plot of land ready for development, and where the only limit is your creativity? Of course, you need approvals and a good team of agents will be able to direct you to the right path.
Financing your investment
It’s very important to have the ability to finance whatever property you are looking to build or buy. Whether you are a personal investor looking to purchase a single property to live in with a possible future rental income, expand your business or grow your property portfolio, the biggest question is always: is the money available?
Having money available is more than simply a large limit on a credit card. You will need liquid funds for fees, moving costs, finishing and decoration – it’s not as simple as meeting an asking price. Of course, Mortgage Finder can help you when it comes to that, with experts dedicated to providing financial advisory services.
Making sure you do not rush is important. If you can wait one month and improve your financial standing, then do so – it is better to accumulate the money than feel the pressure and struggle in a month’s time.
Buying the right property
The opportunities for end-users are superb, with developers offering excellent high-quality units, great mortgage options and the municipality now supporting ownership with title deeds – it just remains for you to choose the right property.
Discuss your needs with your agent. Every property, even a studio, is a strong investment for the future. Get to know the city’s different areas, think about the main objective behind your investment and what you can realistically afford, so that you can properly plan and move forward!
There is always something that you will like which is within your budget.
Don’t get stuck being a tenant – you are simply benefiting someone else’s investment. Seize your chance and don’t miss the wave of great opportunities in Abu Dhabi!
By Kika Pavese