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Prices
are inexpensive by comparison
to other similar trading
hubs around the world,
and are up by more than
20% in the past two years.
There is scope for a substantial
further rise, and certain
properties have doubled
in value already. |
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Property
is a good hedge against
inflation which is showing
signs of re-emerging in
the global economy. At
such times the higher
cost of debt servicing
can usually be past on
in additional rent, while
the value of the property
inflates and its debt
is unchanged. |
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Rental
income from property is
a stable source of income,
and while it might fluctuate,
is highly unlikely to
vanish altogether. Compare
that to interest on deposit
accounts or dividends
on shares. |
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Real
estate always has a residual
value, although prices
can certainly fall as
well as rise. But property
values will never fall
to zero unlike shares
and hedge funds. |
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Property
is a kind of hybrid asset
with the capital appreciation
of a stock but the income
producing capacity of a
bond. |
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Investors
typically have more control
over the nature, timing
and size of real estate
investments. This is partly
because they are tangible
and easier to understand,
and diversification is readily
available in the form of
different types of property.
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Dubai property
is open to any investor
from anywhere in the world,
unlike the local stock market.
This means greater liquidity
and more funds in the marketplace.
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Demand for
property typically picks
up during an economic boom
such as the one being seen
in Dubai now. With massive
projects such as the Dubailand
theme park, Palm Islands,
and Dubai International
Financial Centre coming
to fruition, this looks
a wise time to invest in
real estate. |
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Real estate
is always an excellent collateral
security against loans,
and allows debt finance
to be secured at the best
rates. |
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Property
portfolios offer great scope
for diversification of risk
into different property
types, locations and rental
levels. This helps to spread
the risk of an interruption
to income flow. |
