Property Investment Insights, by Mohamed Al Tawash, Upward Real Estates S.P.C
Bahrain is a well-known attraction for property investors, not only to Bahraini nationals, but to all GCC citizens and some international investors. With so many real estate options, some investors tend to choose an unsuitable basket for their money. Most investors are looking for a ROI (return on investment) of around 10% a year, but that’s not necessarily the right thing to do, as some properties give you 7% or even less return, but have a better sustainable income in the long run. In this article we will share our valuable experience and give you some points to help you choose the suitable basket for your money.
Ready or off-plan? Many clients want to buy a property in an off-plan project because it’s usually slightly below the market price. Plus, it gives you reasonable payment plans. But wait, with RERA (The Real Estate Regulatory Authority) operating in Bahrain since 2018 and with a main goal of protecting investments in the real estate market, you have to ensure that the off-plan project you are looking to invest in is licensed by RERA, to legally protect your investment, should anything go wrong with the developer.
Dealing with a well experienced and licensed real estate consultant will help you as an investor because the consultant will guide you towards your goal. Planning your investment is one thing and verifying your choice with someone who is more knowledgeable in the real estate investment field is something else. If you are looking into investing long or short term, the consultant will clear some of the doubts that you may have, such as easiness of renting the property or reselling it, and whether the area you are planning to invest in meets your requirements.
Investing in real estate is not as complicated as people sometimes think, and the property market gives you a tool that other investment options may not offer, which is leverage. When planning to invest in real estate, banks will require a down payment of at least 5% for some properties, therefore they make it more affordable and accessible for those who want to enter the property investment field. But this may diminish the chance of having a successful investment portfolio in real estate. Therefore, we suggest you study and plan your investment with a real estate consultant and have a clear vision and understanding before stepping in and investing in the market.
Even though most people think that the majority of real estate agents are only looking to sell, and lack credibility in the real estate market, finding a good, licensed agent with experience and knowledge isn’t that hard with Property Finder, which is a tool that is making the real estate search more accessible and ensures that companies are legally operating in their platform.
Last but not least, property investment is a very good sustainable choice if you know how to choose between all the available options in front of you. Studying the market and analysing the investment choices will increase the chances of having a successful property portfolio, whether it’s for a short or long-term investment.
This article was first published in Trends Vol. 2