Private property in UAE Islands is the most
important asset of many investors. Is it a good idea to concentrate its assets
in such investment? Rising prices of private properties since mid-2000s has
dangled the possibility of an interesting profit on resale.
Combined with many exciting opportunities these
man mad islands attracts several investors to bet on a house, a villa or a
luxury apartment as the main asset of investment. However, investors should
avoid the costs of their home account too much weight in their budget, and
especially that they should diversify their assets.
Do not forget, if the purpose of your investment is
to give exposure to the property market as an alternative investment category,
buying private property means that you invest in a single asset. It is as if I
invested all my money in the stock of one company.
Many investors calculate the value of their
investment by simply comparing the acquisition price and the selling price.
According to many experts, this simplistic reasoning obscures many expenses
that come encumber this profit, or even negate, such as brokerage fees on the
acquisition and sale or renovations that we will have made over decades.
A "safe" investment
However, investing in a home continues to be
popular because of two main reasons:
- A sense of security when comparing the stability of property prices to the volatility of the stock market and quality of life
- An intangible asset that has tremendous value for buyers.
According to experts, prices of UAE Islands are
already rising up and nothing indicates that the buyer faces a risk of selling
at a loss. Property investment in UAE Islands also creates some leverage. It
deplores the example of opportunity cost often given by financial planners.
They compare the value of the house for 25 years or 30 years, to demonstrate
that the investor would have done better to invest that money elsewhere.
Thus, the purchase of private property in
man-made islands becomes a kind of future savings. When investing in mutual
funds, you can sometimes skip a year or invest less, or disburse a sum to deal
with unexpected or afford a vacation! The mortgage is forcing investors to be
disciplined.
Real estate in UAE Islands accounts for about 60%
of the value of assets, and these assets through time. Buying a property is favorably
the best performing market investments. It has nonetheless undeniable
advantages. Everything depends on whether one favors the maximum financial
return, or rather the security and happiness of being master in his own.