You must have heard a lot of people regret investing their money in real estate business and that is probably discouraging you from spending or investing your money in real estate property. The good news is that there are ways you can make a good profit with investing in real estate business.
Our focus on this article is to share with you some of the effective and proven ways to make more money with real estate business without any risk factor.
Long-Term Residential Rentals
The very first on this list is the long-term residential rentals. It is among the proven ways to make money in the real estate sector. It all begins with you getting a property and renting it out for those in need of it. However, apart from the design, structure, space, and facilities in the house, the location has much to say about your income.
Renting a residential apartment out doesn’t attract VAT charges, so you have nothing to worry about. The area where your property is located determines the price rate, and there are different ways in which you can choose to get the rental payment.
You can choose to make your property a source of regular income for yourself by telling your tenants to pay on a monthly basis. You can choose to rent the house out for as long as you want. It applies to both off-plan and ready apartment.
Commercial Real estate
Another source of income in real estate business is through commercial properties. It is a perfect alternative to residential apartments, and it appears to be more profitable than the use of residential properties. It opens a platform of cash flow because most people will want to rent office spaces or shops to operate their business.
It is a lucrative business, but the landlord has to pay five percent VAT. To make the most of the opportunity, you need to consider the location where you have your building and the profitability of commercial properties there as that will give you a great insight on what you are likely to get from investing in the commercial real estate.
Fix and flip houses
If you are new to the word flipper, it just means getting a thing that needs repair and then sell it out after it must have been repaired. So with house property, you have to look around for some buildings that need to be restored or renovated. When found, you have to fix and put all things in place to make the building sellable.
Once the house has been renovated, you can place it in the market for sale at any price that will be profitable to you. It is essential that you know how this works with the factors to consider which will determine your profit.
More significant numbers of people visit Dubai on a daily basis with some visiting for vacation, tourism, shopping, and business. With the increase in numbers of people, real estate business is profiting in the sense that landlords will increase the price for accommodation and those with commercial business such as hotels will raise their bill for the lounge as well.
The prospect in this is that you can create a place for those on vacation. You can just rent out your backyard or some part of your garden to those who are on vacation with low budget to get a place to stay. They will be willing to pay your rental fee as it will be the only affordable option for them and you will have more money in your bank.
It works more like being a third person. All you have to do is to find someone who is willing to sell an apartment and find another that is willing to buy. You have to link them together and allow them to make the deal.
Once that is done, the two parties will pay you, and then you make a profit. You don’t need a license to do this kind of work and to make more profit with it, and you can go ahead and inflate the price of the property and sell without linking anyone to each other.
In conclusion, real estate is one of the profitable businesses in Dubai, and most people are taking advantage of the need for more accommodation in Dubai. Listed above are possible ways you can make more money in the real estate sector.
About the author:
Susan John is a lifestyle blogger from Dubai who writes about lifestyle and real estate. She is an outreach blogger working with different real estate companies in Dubai.