One of the proven ways to become wealthy is investing in the real estate sector. You can build houses and rent them out or buy properties to sell them later at high rates. For the former, you can work on making your property alluring enough to appeal to the tenants and charge higher rent from them. 

When it comes to top investment sectors in the world, Dubai real estate definitely deserves a mention. If you have surplus money or want to climb up the property ladder, this is the best place for you.

However, it is important to know that investment is not for everyone. Real estate investment takes a lot of dedication, planning, and research.

If you are a first-timer and you wish to invest in Mulberry Dubai Hills or any other areas, here is a rundown of how you can become successful in real estate investment.

1. Know the Costs

You should know about the costs involved as real estate investment is not cheap. Properties are expensive, and if you have the funds and can take a loan, it can be quite worth it.

However, the investment does not end at purchasing property only as there are additional costs involved such as basic maintenance, yearly upgrades, utilities, and taxes.

Everything has a cost, so, make sure to factor everything.

2. Choose the Property Type

Once you have set aside the amount for real estate investment, decide the type of property to invest in. You could purchase either residential or commercial rental properties.

You can become a landlord, that is a business in itself.  You can go for a commercial option if you are not interested in having residential property. First of all, decide your plans for the property before selecting a property.

3. Check out the Area

Location is one of the most important factors when it comes to real estate investment. See that you don’t end up buying in an area only because the price is favorable to you. Check out the market value and the neighborhood. See what the location offers.

Research the competition and see the property you have chosen is in the right location. If you want to get residential or vacation rentals, see the community and if it is near popular attractions and other facilities. And if you want to rent the place for business rentals, also take into consideration the area’s population and parking.

4.  Protect Yourself

If you are thinking about investing in one or multiple properties, you can consider using an LLC to purchase them.

An LLC (Limited Liability Company) could assist you with risk management. It allows ownership over the properties, so you are not responsible if anything happens on those properties. It is liable to protect your retirement fund should something occur on the property.

It gives you checkbook control as well that can help if time is a factor when accessing your retirement funds for real-estate-related purchases. You are your own business manager yourself.

This allows you access to the funds whenever you need them. However, all the funds removed have to be used on the property. You would still need a custodian and report to him regarding any withdrawal.

5. Investment Terms

After selecting the property type and location, decide the terms of investment such as fees, rent, yearly costs, and emergency funds. What about utilities? Take into account the fees and funding you require to maintain the quality of your investment.

You could hire a property manager to deal with your property-related matters if you have properties in different locations. You need to decide all of this ahead of time.

6.  Consider the Growth Aspect

When you invest in real estate, you would want to sell it eventually. No matter you hold on to it for some time or sell it right away, your main intention is to gain property. You would want to sell your property for more than the amount you paid for it.

Make simple upgrades and additions. You will see how they increase your property value. When you further invest in your property to increase its appeal, you can sell it for more.

7.   Create a Go-To List

You should have a list of people at hand that can help you with your investment. Property managers, an attorney, a CPA, real estate agents, and money lenders are important resources.

You need to have a group of people that shall keep your property in tip-top shape such as a handyman, electricians, plumbers, an inspector, and contractors, etc. You might not need all of these people, it is good to have a few reliable numbers at hand.

Investing in real estate could be quite a task. But it can translate to be quite successful if you invest in high-end properties like The Valley by Emaar. Take your time and perform due diligence before deciding if real estate investment is right.