Page 66 - SOBHA REALTY PR REPORT NOVEMBER 2023

shareholders, where each will only be purchasing a portion or percentage of
the entire asset. This investment provides numerous benefits for owners,

including usage rights and income sharing. By lessening the burden of regular
upkeep and maintenance expenses, this is considered a significant
opportunity to diversify investments and build long-term equity. Following the
conclusion of the transfer, the Land Department will provide a title deed with
the percentage share of each investor or shareholder specified.

There are various financing avenues available for rental property investments.
Traditional options, such as mortgage loans, private lenders or partnerships
are worth considering and exploring. Investors can also assess the interest

rates, terms, and related expenses to choose the most viable and favourable
option to invest. Additionally, it is also necessary to keep in mind that a high
credit score as well as a proven track record of financial responsibility will
maximise investors’ borrowing potential.

One way to increase returns and alleviate the risks associated with real estate
investing is to diversify the real estate portfolio. Investors can consider
spreading their investments across different asset classes, including

residential, commercial, and mixed-use buildings to reduce risk exposure.
This enables investors to reduce the impact of market changes and build an
investment portfolio that is more stable and balanced. Moreover, determining
whether passive or active investing suits better, may be done by evaluating
one’s skills, time availability and level of intended involvement. Active

investment entails management tasks like tenant management, property
selection and renovations, while investing passively refers to assigning
experts, such as real estate investment trusts (REITs) or real estate
crowdfunding sites to manage one’s investments.

While investing in real estate can result in considerable benefits, there are
also challenges involved. Investors have to consider and analyse in advance
the potential risks and threats, such as market fluctuations, regulatory
changes and unanticipated expenses to overcome these barriers. Keeping a

cash reserve set aside for unforeseen events, inspecting the property
frequently and putting risk management strategies in place are worth

https://www.cbnme.com/news/unlocking-path-to-financial-prosperity-wealth-creation-through-real-
estate-investments/