How To Maximise Your Property Investment ROI?

 

There’s nothing compared to property return than real estate investments in Dubai. The emirate has received 39,802 real estate interactions worth AED162 billion in the first nine months of 2018, proving it’s an ideal destination for homebuyers and investors.

It’s no doubt that property is one of the smartest investments you can make. It’s good for being the key to healthy financial freedom and positive cash flow. Despite asset values multiplying, increase income and wealth accumulation, best rental returns and more, it’s highly important to invest in the right property, market and price as maximising the property ROI is an investor’s main goal.

To get you started, here are a few tips to boost your ROI:

1. Choose the right location

The right area/project plays a big role in choosing which property to invest in as this shows the ROI expected from the property in a few years. There are great destinations in Dubai to invest in whether it’s a studio, apartment, villa or townhouse in areas such as Dubailand, Dubai Hills Estate, Business Bay and Bluewaters Island.

2. Keep on top of maintenance

Always keep the house well-maintained and regularly inspected by a trusted group of go-to contacts. Minimize maintenance costs by investing in good contractors and reliable vendors. Properties that look good will naturally command a higher rent. Whether you enhance the interiors or add more décor, or stay on top of regular maintenance, it all adds up.

3.  Know what value add-ons renters want

Tenants usually care about location and price. However, there are multiple value adding features which any smart investor should implement. To yield the best return, add multiple features that add value such as installing additional appliances, a security system, storage, parking and more. If within close proximity, it will increase your return on investment on the property. If all the amenities and key features are in one location, it will help your property to stand out from its competitors. That’s crucial in securing a good investment.

4. Manage to increase rent strategically

Price your rental property right according to the current market and its competitors. Maximizing rental yield as much as possible can sometimes work against property owners. Homeseekers usually look for lower rental nearby but that doesn’t mean raising the rent strategically isn’t necessary. If every month the property is not rented because the landlord is asking for too much, then there will be loss and monthly rental amount.

Prices of the property should be rented out reasonably and at par with the market, in addition, its value is still better than the value of a new rental - in order to ensure immediate rental for the property. This will no doubt increase the property’s ROI. If the house is well-maintained and has all the essential features, it’s more likely the tenants will stay long longer.

5. Offer long-term leases

Along with smartly renovating to prolong the life of the property, possibly offer long-term leases. Some tenants are happy to pay extra for the practicality of a longer-term lease. Most renters dislike moving as it’s a major hassle as it’s time-consuming and costly. It’s also easier offering  flexible lease terms rather than finding new tenants.

We have a team of professional real estate agents that are ready to help you with the variety of properties available across Dubai.



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