Wednesday, May 8, 2019

How to spot a profitable real estate deal

Every real estate investor wants a good deal that will offer profits at the end of the day. According to real estate experts, location and the condition of the property are the two most important factors that determine if the property is worth the purchase.

While also the price matters, it is very difficult to find a property that can be overhauled with minimal effort. Those that have purchased a property with the intention of renovating will admit that there might be hidden issues which are unidentifiable even under thorough inspection. There are certain ways you can determine whether a deal is profitable or not.

Due to increased competition in the Dubai real estate market, buying prices are falling. If you are careful enough, you are likely to get good deals such as the Meraas Bluewaters residences and Madinat Jumeirah Living apartments. These properties are placed in a good location which will turn out to be profitable shortly.

Below are some ways you can spot a profitable real estate deal:

i.          A bank-foreclosed property

When a tenant fails to meet the conditions of the mortgage payment, the lender repossesses the property and lists it for sale on the market. Even though the foreclosure is of course sad on the part of the evicted tenant, it is one of the best deals you can get in real estate. Since most banks are in the business of lending money and not managing properties, they often offer huge discounts to attract buyers.

Because the foreclosure process may take up to several years, the property may need a serious facelift. The banks can offer further discounts to compensate for the repairs. Talk to any of the top real estate brokers in Dubai to know more about foreclosures.

ii.          Be first or last

In real estate, the early bird catches the biggest warm. In most cases, it is not the highest offer that gets accepted, but simply the first. If you are really sure about a property, be quick to buy it and don’t waste time. Tell your broker to set you up with automatic email alerts to get notifications when a new property hits the market. Get pre-approvals from the bank to enable you to jump on deals as soon as possible.

On the other hand, another way to get a great deal is by considering properties that have been on the market for a long time.

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