How to escape renting and buy your first property by ‘rentvesting’
Usually in Dubai, the working populace chooses to live in a place that is strategically located near their workplace or lifestyle considerations. The burden of traveling minutes to hours just to go to work or grab groceries is taxing for most people, thus renting in a nearby place like the Bluewater apartments or new projects by Meraas is a decent choice. You will come to a point when you will start thinking of breaking into the property market. However, Dubai real estate agencies offer world-class off plan projects in Dubai that may be out of your league. So, rentvesting would be your most appropriate option.
What is rentvesting?
Rentvesting is a concept wherein people are still renting in their desired location while starting to invest in an affordable property in the suburb. This is like hitting two birds in one stone – you get to keep your desired place while starting to break in the property market.
Rentvesting can take up a considerable length of time before you will reap the fruit of your labor: your capital gains. Therefore, you must take careful consideration of your financial and investment strategy. Do your research beforehand, and consider all the risks you are exposed to.
Since you will not be living in your investment property, then it would mean you can be more objective with your decision making. You can opt for a low-cost property as a starting investment. The decent rent could cover the mortgage and the property’s expenses which is a great thing to start with.
How to start rentvesting?
When you decide on your first investment property, you must make sure to follow the principles of investing.
- Choose a property that attracts and suits well to your future market.
- You should keep in mind that the location of your property plays a vital role in attracting future tenants, thus it should be advantageously situated near shops, local facilities, schools, and so on.
- Be sure that the property is always occupied or rented to cover up the costs of your investment, or else you will have to pay two rents.
- Find a respectable property manager who can give expert advice regarding the rental charge, keep track of the maintenance of your property, and deal with your leaseholders on your behalf.
Rentvesting allows you to start your own home and property market investment at the same time. You can also make new investments while living the version of life you choose to live.
However, choosing to rentvest or not only depends on you. If you are on a more traditional approach to starting a family, then rentvesting may not be suitable for you. However, if you prefer to enter the property market at an attainable level, then start rentvesting as soon as possible.
