When investing in property market in the UAE, many individuals tend to secure a long-term income by becoming a landlord. It is worth noting that residential real estate can generate from 5 up to 12% ROI, which really high in comparison with European capital cities. Of course, a landlord has many responsibilities, including maintenance, repairs and restoration, however it is possible to hire a property management company to save the time and efforts. As a rule, apartments offer a higher ROI than townhouses and villas.
When renting out a property, you will only be charged with a 5% VAT tax and an annual maintenance fees payable to the DLD. It is recommended to purchase compact residences such as 1-bedroom apartments and studios with established infrastructure. Once you purchase a property, you can hire a real estate agent, who will find for you a tenant. As soon as the tenant moves in, you will start receiving a regular income on a daily/weekly/monthly/quarterly basis, depending if a rental is short-term or long-term.
If you have any questions about selling or buying properties in Dubai, please feel free to contact us and we will do our best to answer your questions.
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