5 Mistakes to Avoid While Buying a House
Published Date: 01 Aug, 2024
5 Mistakes to Avoid While Buying a House
Looking for a property to buy in dubai? First-time buyers tend to make a lot of mistakes because they are least aware of some factors that may cast negative effect on the deal. However, these tips can be avoided by considering some important factors. For starters, avoid making the following mistakes while searching for a property in Dubai.
Ignoring ROI & Capital Appreciation
You may get a dream house in Dubai but do you think it is a smart investment? Ignoring factors like not calculating the Return on Investment (ROI) can lead you to making a poor investor. A simple formula for calculating the ROI on your property is:
ROI = (Gain on investment – Cost of investment) / Cost of Investment
The other big thing to consider while investing is to consider Capital Appreciation. It is calculated by analyzing the worth of property in a few years. For instance, imagine buying a property for AED 100,000 in UAE. After five years the properties in the areas become more pricey due to development work such as developing an Airport and according to new prices, the price on your property is no less than AED 250,000. If you decide on selling your property then you will earn AED 150,000 in gains. This indicates the potential of the property.
Not Analyzing the Neighborhood
Now considering the ROI and Capital Appreciation, it becomes important to analyze the potential of the neighborhood. If you are choosing a property in the area which has no potential to develop or has already developed with no new prospects, you may get good ROI but lower Capital Appreciation. To make a good deal it is highly important to consider both factors and pick the neighborhood accordingly. The neighbourhood should also be decent enough to live a stress-free life. Don’t opt for areas where security remains a question and living conditions in general are not ideal.
Neglecting Market Trends
A good buyer always knows when is the good time to make a deal. Neglecting the market trends may make you buy a home at higher prices. For instance, if you have no idea about the ongoing market rates about different types of properties, you may end up buying a house on higher rates than the market. Also, there are windows where the property prices become lower due to multiple factors. It becomes important knowing of such windows to make a deal then and there.
Not Taking Expert Help
If you think property purchasing is an easy task, then you are clearly mistaken. If you intend to buy just any property anywhere while sustaining higher costs, then go alone. However, if you want to consider ROIs, capital appreciation, understand the neighborhood, analyze market trends, negotiate the terms, and get the documentation done quickly, then you are all set to make a good deal.
Read to buy a new property or explore best luxury properties dubai? Call us at A Land.
Date: 01 Aug, 2024
