Real estate as an investment: what do I have to pay attention to?

Investments: Popular investments

Question: You have gain a lot of experience with different investments! Please give us a pro and contra for the most popular Real estate companies in Dubai in terms of value and success.

Then let’s talk about it first: What are the most popular investments at the moment? I think stocks, government bonds, all of this also as funds, then also precious metals and even raw materials. Of course, I am also thinking, and especially, of the so-call “concrete gold”, i.e. houses and apartments.

Shares as a form of investment

Let’s start with stock. Under no circumstances should you invest your entire capital in shares, and certainly not just in one “title”, that is, shares in just one company! A distribution across several companies like Real estate companies in Dubai or, better still, forms of investment is the safest way to avoid failures in every respect.

Funds do not provide any investment security: disadvantage

That’s where we come to the funds: The big advantage here is that the investor can immediately rely on a wider range of corporate bonds when buying so-call fund shares. This means: if a share in the “pot” (ie the fund) is doing badly, the other shares can rip it out. The advantage of the fund: a fund manager takes care of the stability and the best possible composition of the securities.

Disadvantages: The fund manager wants to be paid. That is why the investment income with funds is usually not as high as with direct investments. Even with funds there is no guarantee that the investment income and the value of my fund units will only go up. If several stocks are list badly in the fund. Because the companies that issue the stocks are not doing well, then the value of a fund will also show a downward trend.

Measure the value of a property correctly

Question: You certainly need some basic knowledge in order to generate profits with capital investments – regardless of which ones. How is the value of a property actually created and how is it measure?

There are different possibilities. In addition, there is the size of the house, how old it is and in what condition the house is. The age of the technical systems ( heating , water and power lines) also plays a role. Very important: the location! It makes a big difference whether the house is near or far from coveted cities. B.

If you want to buy a condominium as an investment, pretty much the same applies. It is somewhat different with real estate that the investor does not live in himself. In the case of a rent apartment or even a rental house, the so-called earnings value is add as a valuation basis . In any case, it is up to real estate experts to calculate this.

Profitable Real estate companies in Dubai investment: 3 factors

Question: What makes a profitable real estate investment? What are the three factors to look out for?

Regardless of whether you want to live in the property yourself or rent it out. Anyone who invests in a property should make sure that it is in an optimal location for its purpose. This usually includes the proximity to shops for everyday needs and public facilities such as schools, etc.

Second, the location should be such that it remains the same or is even increasingly covete over many years. Even if the region of my property is still expect to move to the region in – let’s say – 25 years, this will ensure a decent increase in value and easy sales opportunities.

 So I’m deliberately not saying that a property always has to be particularly cheap or expensive in order to get something for your money. I can compensate for any disadvantages in the location or condition of the property with a lower purchase price. A particularly expensive property, on the other hand. Has to have a lot of advantages. in order for me to get a lucrative capital investment in it.

Yes or no? Real estate as an investment

Question: When I have decided on a property as a capital investment . And that is becoming more and more popular in Germany – where should I look around for a suitable property? The big cities in Germany have already become very expensive due to the high demand, haven’t they?

Unfortunately, from the buyer’s point of view, this is true. Of course, there are always “bargains” in the direct metropolitan area.

If you are interested in a house or an apartment a bit away from the center. You should always make sure that the transport connections are good and that there is a good infrastructure of schools, shops, etc. in the village itself. Then people will continue to live there in the long term and want to buy Real estate companies in Dubai. This in turn means rising prices and thus a good increase in the value of the property as an investment.