If you have some money lying around, and you want to put it to good use, financial advisors would advise you to channel it into a lucrative investment. There are plenty of investment options available today – you can invest in stocks, mutual funds, tax-free bonds, equities, or insurance programmes. However, if you are looking to steer clear of risky financial moves, then investing in real estate properties would make the perfect option for you, and here’s why:
- The safe choice
A real estate investment is significantly less risky than other options. according to estimates by the Dubai Land Department, the valuation of real estate transactions in the country is growing at 38 per cent every year. This is evident in elevated performance of the real estate market in the UAE as compared to other markets in the region. This makes the local market an attractive investment pool for property developers. More importantly, with Dubai quickly becoming recognised as the business hub of the Middle East and North African region, logistics and planning can be commenced with relative ease. Peter Koulizos, university lecturer and investor, highlights the advantage of buying property as compared to investing in shares – “When you factor in the return and risk associated with buying property and shares, property wins hands down.”
- It is easier to understand
Entering the stock market as an investor requires intensive research. Stocks have a tendency to be volatile, moving up and down in value over short time intervals. Without understanding how the system works, how to catch signals, and determine when to buy and when to sell, it would be ill-advised to make any sort of transaction, to say the least. In addition to knowing the financial instruments of the trade and the roles of fund managers and brokers, you would also have to familiarise yourself with the different activities and performances of companies in the stock market. Trading stocks is all about timing. To achieve success, you need to know when it would be profitable for you to buy stocks, and when to let them go before their value drops. On the other hand, investing in real estate would only require you to do a bit of research online to look for properties that are up for sale. If you feel like doing a bit of legwork, you can also visit auctions and open houses to get a good look at the prospective properties.
- Complete control
If you want to invest in shares or stocks, but don’t have the requisite time or knowledge, you will need to hire the services of a stock broker. Your stock broker will manage your stock trades, according to the current viability of your shares in the market, and the performance of the company you have invested in. Simply put, there are plenty of external influences that place a level of uncertainty on the value of your investment. In contrast, once you have finalised a transaction for a property, you gain immediate ownership of it. You have complete control over your situation. You can increase its value by making smart, value-driven developments that make it more viable to your target market, or you can immediately start earning money from your investment by opening it for rent.