Dubai, UAE, July 02, 2018: As you grow in life, you write a list of accomplishments for yourself, of which the one that probably tops the list for many is – buying a house!
As you dive into this decision, you may consider whether you want to buy to live or buy to let?
Do you want a home or do you want to buy a property, not to live in immediately, but as an investment? Would you rather swap your monthly rent to pay towards a mortgage or would you rather rent out for potential additional revenue? Here are a few tips that will help you decide whether you should buy to live or buy to let.
Investment
Buy-to-let is an attractive investment option offering regular rental income, long-term capital growth and security, even for those with a mortgage to pay.
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When you are buying to live, your major initial investment will be monthly payment towards mortgage in addition to insurance, property taxes and ongoing maintenance of the house. Once the house is paid off, remember you need to keep investing in maintenance of the house so that your property value does not fall even if you decide to rent it out in the future.
Rental Demand
Make sure that the rental demand is high in the location you buy if you are planning to let. This will help you get better returns on your investment in the long run. vs
If you are buying to live, ensure that the resale value of the property will, subject to unforeseen circumstances, be higher. Rental demand will hold lower importance in this case as your long term plan is to live in the property.
Location, Proximity & Accessibility
In general, whether you are looking to live or let, location, proximity and accessibility is a common factor that should be given high importance to. Whether it is for yourself or your tenant, place of work, supermarkets, schools, activities, amenities & other points of interest and necessity should be considered. This is an investment you are making to live in or to let, from a long term perspective, it should be fulfilling your needs and wants.
Maintenance
When you own a buy-to-let property, you should always keep it in a good condition by carrying out frequent maintenance and repairs causing less inconvenience to your tenants. Ensure that there is adequate demand for it always. vs While the property you live in also requires effort you have a longer time frame in which to complete any alterations, additions or renovations because you will not be inconveniencing any tenants (only yourself).
Kaizar Patla, Head - Consumer Assets at ADCB said: “When you decide to buy a house – it is a big purchase you are considering. For many, it is an important investment decision they make and therefore it is important to make the right one. But, there is no right answer for everybody. You need to look at your reasons for buying to live or let against your short and long-term financial goals. Then you can decide what is right for you and your family.”
Owning your own home is a big step in life and a long-term financial commitment. To help you achieve this, ADCB offers an extensive range of mortgage solutions designed to fit your financial situation and individual needs.
