Investing in properties comes with its own set of challenges.
Finding the best location for a house or apartment is the first hurdle you have to overcome. You have to find a property with the perfect address. It should attract potential tenants who want to live in the area.
Another difficulty you may likely encounter when purchasing a property is choosing from among the different types of residential buildings. These options include single-family homes, townhouses, apartments, and condominiums.
When you narrow down your choices to either an apartment or condominium, you still have to select among the various types, which include studio, convertible studio, one-bedroom, two-bedroom, and loft, among others.
If your budget for this investment, though, is not too big, your choices will probably boil down to either a studio or one-bedroom apartment. These types often fall on the low end of the price spectrum and, as such, are your best options.
But if you want to buy an apartment in Dubai, you will do well to opt for a one-bedroom type. This property comes with several advantages, so it is always a great investment.
What Makes One-Bedroom Apartments Excellent Investments
Below are five reasons why one-bedroom apartments make great investments:
As mentioned, one-bedroom apartments are among the most reasonably priced properties on the market. If your budget is not too high or you are wary about spending too much on your first real estate investment, this type is your best option.
In Dubai, the prices of one-bedroom apartments start at AED 150,000 or USD 40,000. This amount is considerably lower than similar properties you will find in other metropolitan cities around the world.
Additionally, you can take out a loan or mortgage when you buy the property, which will make it easier for you to afford and make payments for the apartment.
2. Higher rental yields
Another remarkable advantage that comes with buying one-bedroom apartments is that they are highly popular among people looking for a place to rent.
This is a huge perk that you can enjoy if you are buying a property that you want to turn into a rental.
Small homes attract a variety of interested tenants. These include young professionals, newly wedded couples, seniors, and even students. They find this type of property convenient, comfortable, and secure.
More importantly, one-bedroom apartments are popular since they are more affordable than bigger homes.
However, even if smaller properties usually do not experience high capital growth as homes with more bedrooms do, their popularity ensures that your rental won’t stay vacant for a long time.
One-bedroom apartments are also one of the top versatile properties around. Although they are not spacious, they are full of possibilities.
If you plan to use your apartment as an additional income stream, you can turn it into a short- or long-term or holiday home rental.
Since single bedroom apartments are popular and affordable, so you won’t have difficulty finding tenants for your property. Because of this, you can expect a steady source of income every month.
As long as you go through the process of establishing your rental property legally, you won’t encounter any difficulties as a landlord.
You can also turn your property into a holiday home rental. With this option, you can earn income from tourists and anyone that needs a temporary place to stay.
This is an excellent route to take if you also need to stay in your apartment a few times a year. You can gain income from letting it while you are away.
If you plan to turn the property into a year-round holiday home rental, you will have a reliable source of income without the hassles and challenges of being a full-time landlord.
4. Strategic location
Whether you plan to live in the apartment or make it a rental, you will enjoy one huge benefit: its great location.
Most apartment buildings are located in the best parts of cities. They can be found in or near central business hubs. Because of this, anyone living in such properties will find it easier to go to their place of work, do their shopping, and visit or hang out at their favourite restaurants, cafes, and other haunts.
Additionally, strategically-located apartment buildings are in close proximity to major transit routes. Travelling to and from your home, therefore, shouldn’t be a problem.
Finally, the best apartments are located in safe and secure areas. Whether you plan to stay in the property or rent it out, you will have peace of mind knowing that the neighbourhood is safe.
5. Excellent amenities
Lastly, although your apartment unit may not be spacious, you won’t lack for anything else. If you choose the right property, you will have everything you need to live comfortably and the best perks to offer to your tenants.
Aside from a convenient location, top-notch apartment buildings have several amenities that make staying in it enjoyable and extremely pleasant.
The best apartments have different recreational areas that include a swimming pool, gym, yoga room, lounge area, rooftop and community gardens. There may also be spas, cafes, and restaurants since these buildings usually have spaces that can be rented for commercial use.
Other amenities that make living in a single-bedroom apartment more convenient and comfortable include laundry facilities, additional storage space, concierge services, a high-end security system, and the presence of security guards and door attendants.
Another essential amenity you have to ensure you can use in your apartment is a parking space. If you own a car, you need a safe place where you can leave it at night.
Also, a parking space is always a big draw for tenants and holiday home renters since even if they don’t own a car now, they may buy one in the future or rent one. Either way, they need a safe place where they can park their vehicle.
Lastly, a wonderful view is an amenity that everyone can appreciate. When you or your tenants or visitors have access to amazing scenery, going back home will always be a pleasant experience.
Whether you are investing in a residential property to call your new home or to turn into an income stream, consider purchasing a one-bedroom apartment to access these benefits.