When the market in on the upward curve, everything seems right
and everything you do turns profitable. However, the fact is that
real estate will be a rewarding venture as long as you stick to the
basic and golden rule of real estate.
The first basic rule:
Do your research before buying. There is enough information available
online and most importantly, do not assume that you know it all, it is best
to engage the services of a brokerage firm. Understand the market, take
feedback, skip the guesswork, visit the locations and ask questions.
Location is everything:
Ask just about any real estate agent to list the three most important things
a property should have, and you’ll likely hear: “location, location, location.”
Why does location matter so much? For one, you can’t move a home, at
least not easily or inexpensively. When you buy a home in a good location,
it’s usually a solid long-term investment. So, be ready to stretch those
dirhams if it comes down to location.
Go in the opposite direction of masses:
When everyone is looking to sell, that is the time to buy. Never sell your
property when the market is soft.
Control your debt ratio:
Do not over leverage your asset. Ensure that your debt ratio is healthy even
in the event that the market corrects itself, so that you are not forced to sell
or dispose your asset in challenging market conditions.
Do not be a trader in real estate:
If you wish to become a wealthy person, hold on to real estate, don’t play
by the curves of the market, play by time and you will reap the rewards.
AHID SHAIKH MOHAMMED
Chairman – Deja Vu Real Estate
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