The Top 3 Real Estate Investment Strategies

There is a lot of information out there about real estate investing. This information can be sometimes confusing, because it is never really clear what the best investment strategies are. This article focuses more on the best strategies that will work in the current real estate market. This is a biased market skewed more towards buyers. There are many homes for sale out there, however, they have very few people currently looking for a home to buy. Therefore, every investor in the market today needs to use those strategies that are most likely going to succeed in this market. He or she needs to focus more on strategies that are most likely to attract buyers or renters to their properties. Here are the 3 best options.

1. Buying for long term hold: this involves buying a property with the intention of renting it out for several years prior to selling the property. They real estate investor in the situation looks for homes that have been deeply discounted, buys these homes, and then turns around and rents them out with positive cash flow. Their goal here is to make at least $200 a month after paying all of the expenses, which include the mortgage payment on the home, taxes, insurance and any other expenses related to maintaining the property. The advantage of using this strategy is that the tenants end up paying down the mortgage for the landlord. The home builds equity with time and is eventually owned free and clear by the landlord after several years of renting the property. The key here is to buy the property at a discounted price and rent it out with positive cash flow.

2. Buying for short term flip: this involves buying a property at a great discount with the intention of selling it right away for a quick profit. The investor here buys the property with at least a 30 equity. He or she then turns around and sells the property to another investor leaving a 10 to 20 equity for the new owner. This is called wholesaling. This strategy used to be very popular a few years ago. It is still being used today but it s not as popular as before. The key here is to buy the property only after you have already located a buyer. The best way to do this is to build an e mail list of potential buyers. Another option is to borrow a list from someone else. Here is the step by step process: you build an e mail list or you locate the list owner, now you locate a property with significant equity, you collect details about the property and send out an e mail to your list, you now close on the deal and then turn around and sell it to the end buyer for a profit.

3. Using the lease purchase as an exit strategy: in this situation, you are buying a property with the intention of renting it out for one or two years prior to selling it. The first step here is to buy a property at a discount. You then locate a buy/renter who signs to agreements: the first is a lease agreement for about two years, the second agreement is an option agreement. The buyer has the option to actually close on the deal within one or two we years. The investor cashes out at the end of the option agreement. The advantage of using this strategy is that you get very good tenants who actually take care of the property while paying a higher than usual rent. Thus you get positive cash flow and you serve the property at a huge profit within one to two years. This is one of the best options in the current market conditions.

UAE Business: Not Just Real Estate!

UAE business is simple after the first year of getting your 'Sponsorship Agreement', office space, your 'Trade License', 'Labor and Immigration computer cards', your own 'Investor visa' stamped in your passport, your 'Driving license' and your bank account.

In the years up to 2000, the government was eager to have small and medium size businesses from where ever they could get investors. Then, with real estate appearing as a lucrative opportunity, the focus shifted to bigger, branded, UAE business and the market changed forever - especially for the small and medium business owners.

Rules for incorporation have become simpler, but the hundreds of license categories continue to be bewildering. It is much easier to obtain a license to do business with the several Free Zones springing all across the UAE, but the visa costs have gone up 8 times as have the Trade License annual fees.

Free Zones - at last count almost 20, act as UAE business centers and make life easier for the foreign investor and provide excellent world class facilities. In addition, foreigners can own 100% of their companies in the Free Zones as opposed to only 49% when they incorporate a UAE business in the country. Many multinational companies have set up shop in the free zones and one would find every conceivable business being conducted in these centers.

To incorporate a uae business locally, you need a UAE national as your '51% local partner' on paper with side agreements to protect you. Depending on your requirements, the 'sponsor' would be paid either a fixed fee or as a percentage of sales or profits. Even though he hasn't put any money into the venture. The upside is that there are no corporate taxes - neither do you have to submit any audited accounts, as you may have to in the free zones.

It is important to note that to obtain a 'Trade License' to carry out business in the UAE, you need to rent or own office premises. You cannot operate from home or from a business center under the law. This increase the cost of a uae business and typically you end up paying about US$ 50,000 per year, just to stay in business - regardless of whether you are making a profit or loss!

So this is great for larger businesses! Only US$ 50,000 - US$ 100,000 per year, depending on office rents, despite making significant profits!

Some business centers will rent you desks or space, and while this sounds quite attractive, you may not be able to use this address as the location of your office for Trade License purposes.

Opportunities are growing very fast regarding real estate UAE and properties are being built here using almost one third of the building equipment of the world. There is continuous rapid growth in real estate uae. Almost US$ 800 bn is under construction.

UAE is focusing on becoming a regional hub for Health care via the Dubai Health Care City and Harvard Medical Center; Leisure via Dubailand and the entertainment parks in collaboration with Six Flags, Busch Gardens, Formula 1, Legoland, Universal Studios, Bollywood, Marvel, Sea World and Dreamworks Studios; Financial services via Dubai International Financial Center [DIFC] in collaboration with Nasdaq; Education via Academic City and the several universities from around the world; Software vis the Dubai Internet City and many more.

9/11 has a blessing in disguise to uae business. With the restrictions on travel and the intense scrutiny imposed by the US on Middle East money, Investors in the region have started investing a portion of their substantial oil portfolios, back into the region instead of into the West as in times past.

Not only that, many of the UAE nationals who are university educated graduates, have begun to take an active interest in managing their own investments - as opposed to the past, when they just gave it to Western money managers who deigned to give them a return in addition to moral advice and told them what was possible.

Now unburdened by what is 'possible' and what 'cannot' be done, they are moving rapidly forward much to the amazement of the rest of the world who keep waiting for uae business to stumble! Every day some one outside uae business asks: 'When will the bubble burst?'

Foreign investors are streaming into this country where architecture is getting a free reign with breathtaking designs being risked for all to see. The best architects of the world are working for the development of this country. Its tax-free environment is another attractive feature of real estate UAE. The demand for commercial properties has risen considerably with the entry of multinational corporates and this has increased both property rentals and property prices. All these factors have turned this country into a dream destination for real estate purposes.

As one long time resident of Dubai said: 'You can stand on the sidelines and criticize, question and wait for the bubble to burst, or you can get into the action and make money for yourself!'

Modern And Strikingly Designed Property In UAE

UAE has caused some remarkable changes to the real estate industry throughout the world. Dubai is one of the booming cities for real estate in UAE that has become an international hotspot for buying property at reasonable price. Dubai is a place that offers a great blend of the tranquility found only in the desert and the lively bustle of markets and various attractions for tourists, residents and executives from different walks of life. Dubai becomes the leading commercial hub with the latest infrastructure and among the best business atmosphere to be found anywhere.

UAE provides all its investors with a wide array of value added options that make it an ideal location for setting any sort of business. It has tropical climatic condition and one of the most dynamic business centers in the Middle East. UAE blends 21st century’s sophistication with the simplicity of the ancient days.

One can find numerous comprehensive solutions that include sourcing prospective properties and reservation and also exchange, completion and the management of property. Dubai offers several sorts of properties such as holiday homes, residence, retirement property, and simply an investment opportunity. UAE offers contemporary facilities and high living standards in the world. Dubai has shown rapid growth in real estate industry as compare to other countries. Moreover to this there are several financial options and also the culture of resale that make it an excellent decision to buy property in UAE.

The number of property dealers is being traded in the UAE that has ensured that in coming few years the growth will continue at 20% per year. However, the growth of Dubai real estate market has been explosive and suddenly it is the combination with the rising status of Dubai as an ideal business and tourist centre that has made it such an excellent international business proposition. Today, UAE is the best place for those who are looking for buying properties.

There are various benefits of owning property in UAE. However, the business angle is quite good which you must not avoid while you are ready to buy property in UAE. Dubai marina is one such example of development. It is one of the most high class and unique development in UAE. Dubai Marina offers panoramic views of the entire marina and also permits rapid access to shopping areas and has lots of themed restaurants.

Alpha Dubai is one of the leading real estate agents in Dubai that has a team of qualified and experienced professionals to provide a complete range of real estate investment in UAE. If you buy property in UAE through Alpha Dubai, they add value to your investments and maximize your returns in shortest possible period.

Things to Know Before You Buy Real Estate in UAE

The price of land holdings have been always soaring high and investing in real estate in UAE is no different. This rich corner of the world has become a good destination for people who wish to live life amidst the most luxurious of the amenities. Not to forget that world’s tallest building is also located in this part of the world. This defines the strength of real estate in UAE, which pulls good investment in UAE. Now, land and building are the kind of properties that must be purchased with adequate planning and paperwork.

Before going to strike a deal for real estate in UAE, ensure that you are legally correct in your action. Whether you are a buyer or a seller, you need to abide by the law and obligations applicable to you. Even the builders and financiers are confined to the legal constraints, which need to be met with in a lawful manner. Buying real estate in UAE is of course a matter of pride but minimizing risk with legal assurance makes your investment secure.

One important thing while buying real estate in UAE is the arrangement of finances. It is essential to do financial planning related to the payment and repayment for the property. There are lot many factors like hedging, mortgage, ownership transfer, lease deed, etc, which are related with property matters. All such factors should be dealt with taking expert legal services. In this way, you can have a secure possession of realty assets.

Another important issue while making an investment on real estate in UAE stands out to be the nomination of your lawful successor. It is a sensible decision to create a will and allocate your real estate belongings. To sum it up, adopting legal and financial advisory services are quite crucial while purchasing realty assets. So, do not compromise in possessing a clear title of your real estate.

The Profits of International Property Investment

The fear and hesitation that surrounded investment in overseas real estate till the recent past seem to be evaporating with sufficient confidence building measures by the world’s major property markets. Governments are becoming more accommodating towards international property investors and are making property ownership possible for them. Even the countries with the strictest property laws are having second thoughts and seem prepared to let the foreign investment pour in. Many of the world’s leading real estate markets have even launched mega projects dedicated for investment from overseas buyers.

Not very long ago, any type of real estate transaction be it buying, selling or renting, was a tedious and tiring task involving physical presence and lot of paper work. Thanks to today’s technology, most part of the labour involved in property ownership process has been removed. International property buyers can now search for their desired property through internet and even pay a virtual visit to the property right from the comfort of their home. There are hundreds of real estate websites available on the internet whose property listings are regularly updated. All the buyer needs to do is simply browse the relevant property listings and the right property is just a few clicks away.

Overseas Investment property gives the owner a double edged opportunity for profit making. After buying the property remotely, the owner can rent it out and enjoy handsome regular income while staying home. On the other hand, the value of property also keeps rising at the same time and its resale after a short holding period can bring very attractive profits to the owner. And more interestingly, a residential property can serve a great second home away from home for the investor. Overseas property investors are well aware of these lucrative benefits of investing in international real estate and for them; high rental yields and rapid capital appreciation are two of the most attractive features of this type of investment.

UAE, especially Dubai, ranks first among the most favorite global investment locations. Other major property investment hubs of the world include Brazil, Dominican Republic, Egypt, India, Italy, Morocco, Panama and Turkey. Property investment, whether it is residential or commercial, in any of the said locations can bring the investor multiple income-generating opportunities which are way better than any other investment. Even an old and shabby property purchased at low price can be resold at amazing rates after a bit of refurbishing.

UAE Property Investment – The Great Idea for All Investors

Each and every person in this world works to earn. Lots of us then look to become stable and multiply the earned money by investing it in possibly lucrative avenues. There are plenty of investment options which can be selected. But there is risk of involvement as well. But the risks involved were just too many and it let to a regular decline in the numbers. Then people start looking at small businesses. Over the time, this investment option too failed to maintain the vast numbers and is fading now. One thing that remains the best option of investment in which you can expect high return on investment, yes, I am talking about property. Property is one of the best options for making investment that will not fade away with the changing time even its price goes up as time passes.

The positive cash flow:
Property is possibly the only investment option that permits you to have a favorable cash flow all along. After all, what more attractive than making money when own the property in the UAE? Plenty of people today are looking to buy property in the UAE just because the UAE is the upcoming place for multinational companies to set their business and major tourists’ attraction. Banks are easily paying the loans for purchasing property in the UAE. Nowadays, various cities of the UAE are offering property at affordable price with luxurious facilities. People who are willing to buy property or who already have bought property in the UAE can expect huge return on investment in the next few years.

If you are looking to buy property in the UAE then you are going on the right as you will surely maximize your profit. With the advent of the Internet, wherever you are in the world, it becomes simple for you to find out the suitable option for investing property in the UAE online. There are plenty of websites which are dedicated to offer UAE property investment service to help the customers throughout the World.

Alpha Dubai is one such property dealer in the UAE that provides you the best possible option in UAE property investment. Alpha Dubai is pioneered with UAE properties that suits your property needs.

Why Invest in Real Estate?

A successful property investor would have a hundred answers to this question, but in this article we’ll glean only some major pros of real estate investment in the world’s prominent property markets. We’ll also see how a wise timely decision can make you rest upon your laurels and enjoy handsome regular incomes while staying in the comfort of your home.

Many see the current global financial crisis and the ‘failing’ property markets in the negative light and avoid taking risk of investing in property at this point of time. It’s true that property buyers and investors globally have reservations about putting their money into property and their concerns are quite understandable. But when we compare real estate investment with other forms of investment, we find that even in the present critical situation, property remains is one of the most lucrative businesses. Property markets are falsely being dubbed as ‘failing’, only they are not performing as good as they did a few months back.

There are many reasons why investment in property is still one of the safest investments, but the primary one is the population growth. World’s major property markets such as, UAE, Turkey, Italy, and Brazil etc, remaining immune to the current financial slump, are faring remarkably well and continue to thrive, though at a slower pace than before. These property markets are either financial or tourism centres and population in there is constantly on a rapid surge. Expatriates and tourists in these property hubs constitue a substantial portion of the total populace and are a key cause of the rising demand for property. As all these real estate centres are extremely business-friendly with a few even offering a tax-free environment, those who want to set up their business and also those in search of better employment opportunities gravitate to these countries.

This foreign influx in the shape of businessmen, job searchers, and tourists plays a major part in keeping the property business thriving. Demand for all types of residential and commercial property can only be seen going higher unaffected by the fall that other industries are currently facing. Buying the property, either for self use, or to rent out or resell, is still a safe investment and can bring the owner high margings of profits in a short period of time. Though the slowdown in real estate sector is undeniable, the situation may be a blessing in disguise for the investors and general buyers. As the property prices have lowered, it’s high time for them to invest in property and enjoy the ownership of a property and the fruits it can bear in the near future.

Dubai Property Market’s Future Perspectives

Overseas property is becoming an increasingly popular investment choice, but buying investment property abroad can be a real challenge. When it comes to buying in emerging markets the challenge can often be compounded due to a lack of available information. This article can help you to obtain the latest and correct information and advice that is needed when buying overseas property.
If you are looking to make some real estate investments you might want to look into purchasing Dubai property. However make sure that you do not make a decision that you'll regret later. Many people make rushed decisions, not taking enough precautions or not investigating fully other alternatives, disadvantages or pitfalls.
Look carefully which advantages and disadvantages Dubai property investment has.

1. Advantages of Investment in Dubai Property:

• 365 days of sunshine a year.
• World Class Sporting Events.
• World’s only 7* Hotel.
• Dubai land.
• Regional base for multinational companies.
• More than US $50 Billion to be invested by 2010.
• Tax-Free Lifestyle.
• Duty Free Shopping.
• 15 Free-Zones.
• The supply of Dubai property is not keeping up with demand.
• Booming Dubai property market in this cosmopolitan city ensures Dubai is one of the most important real estate hubs in the world.
• Record low interest rates and dismal stock markets are goods news for realtors; the Dubai Government is behind the real estate boom, and has secondary motives such as attracting wealthy immigrants to the city. As a results villas and apartments are being sold very cheaply.
• One way to judge if real estate is cheap is to look at the yield or rental return. In this city a basic yield of 10% on residential Dubai property compares with a 6.5% local mortgage rate. In London 3% to 4% would be considered a good yield today so 10% implies a considerable under valuation of property.

Disadvantages:

· Geopolitical tensions in the region (important factor but look at the advantages above)
· Research reports are saying supply will catch with the demand soon like in 2010.
Based on assumptions and one of the assumptions that I don’t agree with is that supply demand curves are based on 2.5 people per flat and I think it should be +4 people in a flat. Many people can’t afford to stay without sharing especially new comers who start with low salary… Anyway which means demand will be equal to the supply much sooner than 2010 lets say by end of 2008 which means you have to adjust your rental expectations by as much as 20% more flats to rent less people to rent them only cheaper ones will go.
· Prices might correct a little bit anytime soon lets say by 20%max
· Severe weather conditions high salt content in groundwater sandy soil which makes most buildings require piles under foundations and they have a life span
· Many are afraid to cash in on Dubai property because they have watched real estate booms come and go in the United States and elsewhere, and the bubble always busts. However there is no indication that the bubble will bust and that Dubai property has been valued unfairly. The building of Dubai property is a priority of the emirates government, so the growing property values seem to have no limit.
After thorough research I can make conclusion that Dubai property has been and continues to be a hot topic among investors because there seems to be no limit as to what can be achieved from an architectural standpoint as well as how much one can profit from the real estate. Dubai and the UAE's future is focused upon creating a business and tourism environment second to none which centers around incoming foreign investment from commercial institutions and individual investors.

Research Firm Assails Rent Control in Middle East

Rent control, seen by many economists as old-fashioned, has recently made a surprising comeback in one group of high-growth, dynamic economies – the Gulf.

In December 2007 Dubai’s government toughened up its 2005 Rent Law and reduced the maximum 2008 rent increase to only 5%. Abu Dhabi has likewise capped 2008 rent hikes at only 5%.

In neighboring Qatar, a rent freeze has been implemented while the government is determining the new rent increase cap. For the past two years to February 2008 rent increases were limited to 10% annually

In adopting rent control the Gulf has moved in the opposite direction to the rest of the world. Elsewhere, rent control regimes have generally been dismantled or softened since the mid-1990s.

Rent control has been removed in most of Eastern and Central Europe. Asia has also followed the trend: China, Japan, Malaysia and Singapore have lifted rent controls since the early 2000s.

The Gulf measures have dismayed landlords, and alarmed property investors.

In an extended research article, regimes in about 40 countries are reviewed by the Global Property Guide, an international research firm.

“We believe that rent control is generally harmful,” says Prince Christian Cruz, senior economist at the Global Property Guide.

“But rent control can be benign, if: 1.) it is implemented so that its market-restraining effects are modest; 2.) it helps to defuse public protest about high rents; and 3.) it assists landlords and tenants by providing an agreed framework for contracts,” he continues.

“Most of these conditions are not present in rent control measures in Qatar and UAE. If rent control persists in its current form, the property market boom might grind to a halt,” Cruz notes.

According to a study by economists Basu and Emerson, “he removal of rent control can not only increase efficiency in the rental market, but can also lead to a general lowering of rents, making all tenants better off.”

“Qatar and UAE can learn a thing or two from Canada,” says Cruz. “Although the laws appear to be pro-tenant, the system is not entirely disadvantageous to landlords. Allowable rent increases are based on each province’s CPI, allowing regional disparity,” he continues.

A landlord can usually petition for a rent increase above the "rent increase guidelines" set for the province. Landlords doing so have to apply to that province's rent authority. Landlord-tenant disputes are resolved by the provincial (small claims) court system, or through a tribunal/arbitration system. The system is very efficient.

3 Reasons To Invest In Dubai Investment Property

Dubai one of the states in the United Arab Emirates (UAE) seeks today to move away from its traditional oil dependence to a more balanced one based on tourism and services. As a result, its economy has grown with more and more tourism resorts coming up to meet this aim. This article will list three reasons why you should invest in the Dubai today.

Firstly, Dubai as mentioned earlier is becoming a services hub and in particular a financial services hub, there is going to be an increase in the number of foreign professionals who are flocking there to work and with a high pay and tax free status over there, the average rental yields of properties there is above the average. Currently the single room studio apartments are doing the best in terms of rental since the expatriates that work in Dubai tend to be single individuals so this would be a great real estate investment tip to note if you intend to invest in Dubai.

Secondly, the cost of Dubai property relative to international standards is still very low and as a result the chance of a large capital appreciation increase is very high. Coupled with the bullish take on rentals as mentioned above, the prices of your real estate investment in Dubai will be set to soar in the next few months.

The reasoning cited by some real estate professionals is that when US and UK sourced money starts flowing into such properties, the value of the real estate will reach international standards and you would make a handsome profit from the capital appreciation.

Thirdly, there is currently a Disneyland attraction being built there and this would result in an increase in tourist visitors to Dubai. If your property is located near Disneyland, there is a chance that you will be able to rent out your property to people going there on holiday. As for problems with rental collections, most real estate companies double up as property mangers and developers so they will be able to handle most of the payment collections on your behalf.

In conclusion, Dubai represents one of the emerging markets where your investment dollar may make a lot more. Spending some time considering whether you want to investment in Dubai property may be worthwhile when considering the potential benefits involved.

UAE Buildings Without Power - Property Market in Crisis

Investors in the UAE property market have been facing some serious frustrations recently, particularly in the northern emirates of Ajman, Ras Al Khaimah and Umm ul Quwain. Ajman has been a particular destination of choice for many Pakistanis who have been attracted by the cheap off-plan property prices and the promise of a residence visa. Now that some of these projects have completed or are nearing completion, they have discovered that they get a 1 year visa which needs to be renewed EACH year at a cost of AED 1,500 (Rs.33000) and even worse, they may not have any electricity in the hot and humid desert climate for several years !!

Thousands of buildings are being constructed in the United Arab Emirates during the current development boom but they have neglected one serious development issue - ELECTRICITY !! Many brand new buildings that have already been completed, stand in darkness while the owners of the apartments in these buildings stand frustrated. Many moved in furniture and belongings expecting the electricity to be connected with a few days but theey are still waiting months later and it seems that the problem will not go away until 2012 at the earliest.




in Umm al Qaiwain, a Dh30-billion project by the Dubai-based developer Tameer, Al Salam City, was put on hold in May due to the shortage of electricity and water. The delay in such a high-profile project, which was believed to have been 70 per cent sold, was a major blow to the emirate.

Safeer Mall, in RAK, which was completed in June, and has the largest hypermarket in the region, remains empty due to the electricity crisis. A spokesman for the mall said they have lost all hope of solving the problem and businesses are starting to withdraw stock.

In RAK alone, 3,532 building permits have been issued. But up to 2,145 buildings in the emirate are still waiting to be connected with electricity, according to the municipality.

In entire districts of Ajman, brand new high-rise towers, finished to perfection, have stood empty for months. At night, occasional lighting powered by generators highlights the idle buildings.

Developers, unable to persuade the federal or municipal authorities to switch the power on, are watching investments running into millions of dirhams show no sign of producing the expected return.

Ajman has signed a $2bn agreement with the Malaysian power producer MMC to build the Gulf’s first coal-powered electricity plant. The project will not be ready until 2012.
It is unlikely that the energy crisis will be resolved before 2013.

Mr Shaban spent millions on setting up business in the Emirate and is now facing ruin and haveing to return to Egypt with nothing and says others are in comparable predicaments. “Many people bought a flat here. They may have bought it for Dh900,000 and now they have had to sell it for Dh500,000.”

Without power, he says, there can be “no life, no development ... you are nothing”.
“You can expect this to happen in other countries, but not the UAE,” he added. “How will the development of the city be achieved if all the business people leave? People are already saying there is no power in Ajman, so why are they still giving approval for the buildings?”

Many Pakistanis who invested in the property markets of Dubai, Ajman and Ras Al Khaimah are now dumping their properties at below their purchase prices and are trying to take out whatever they can of their investments. Islamabad is experiencing a resurgence in real estate investment as much of this money s being repatriated to the safety of the federal capital of Pakistan.