Five Key Considerations When Investing in Property

Dec 29, 2019
Five Key Considerations When Investing in Property
Five Key Considerations When Investing in Property
Dec 29, 2019

At Bin Faqeeh we’re proud to have both new and experienced investors investing in our range of projects from different cultures and countries.  

Whilst culture and nationality may dictate the type of property they choose to invest in, the same considerations have to be taken into account in order to attain the best possible return on investment.  

Here’s our top 5 considerations – in no particular order:

1)    Deposit and Mortgage
Buying an investment property is different from purchasing a home to live in yourself.  One key consideration is that the buy-to-let market can sometimes mean a bigger deposit is required when financing.   In addition a different mortgage type will mean interest rates can be different.  

Our recommendation is to speak with your advisor about favourable partnerships that developers have in place, such as our Alsidra partnership with BisB. 

2)    Where and What to Buy
Such is the array of projects on offer, it can sometimes be daunting to decide which project to invest in.  When investing, it is important to understand the different types of tenant that will live in certain types of property as well understanding the development of the immediate surrounding area.  Our expert team are well equipped in helping investors be informed about what development matches your desired investment. 

3)    Rental Yield 
Generating income is often the primary motivator of any prospective property investor.  Calculating a gross rental yield is key when deciding what property to invest in.  Geographical location can sometimes dictate the available rental yield, so always speak to your property advisor about what opportunities are available across their portfolio. 

4)    Ongoing Maintenance and Service Fees
When signing for any property, it is important to understand the financial obligations of both the developer and investor.  Read your contract carefully and always seek legal advice for any uncertainty in a purchase agreement. Thanks to the inception of RERA in the Kingdom of Bahrain investors are now better protected in all areas of contractual obligations for all parties. 

5)    What Will Your Role Be?
Once the property is signed over, it is also important to understand your own obligations in terms of management of tenants and or the property itself.  Should a property require immediate maintenance, or there be a dispute with the tenant, it is important to understand the role you’d like to play.  Our partner company Real Search is proud to be the largest property management company in the Kingdom of Bahrain. 

Of course there’s many more factors to consider when investing, but hopefully this provides further insight into the key areas for consideration.

To speak with our expert team and enquire about any of our available investment opportunities contact 38000002 today.   

 

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