Property can bring us profit, but it can also bring us headaches. A lot of people want to get on the property ladder, and once they are on there, they look to build their portfolio with clever purchasing decisions. However, it is not easy. Plus, there are matters to consider in terms of who will receive your properties if you’re no longer here anymore. Some people may decide it is a good idea to transfer their property to their loved ones while they are still here.
We will discuss this, as well as one of the best property investment opportunities of today, in more detail below.
Transferring Your Home To Your Children
More and more people are transferring their properties to their children as a part of their estate plan.
As house prices shoot up, increasing the total value of individuals’ net wealth, this is something that is of rising concern. People don’t want the taxman to take the majority of their assets once they pass away. With that being said, we are going to take a look at property transfer to children in further detail below. You may want to hire an estate attorney if you want your property to move to your child once you pass away.
The main reason why most parents are interested in real estate transfer is so that they can lower the amount of inheritance tax paid upon their death. International inheritance tax can be a complicated matter, which is why it is advisable to do all in your power to minimize the assets that are going to be subject to this.
Additionally, there are those interested in transferring their property simply because they want to gift it to one of their kids. This is a more straightforward matter; you are giving your property to your children for them to treat it as their own.
But, what about when you want to transfer your property but stay in control while you are still here?
Needless to say, there are some risks involved, which you do need to be aware of. Firstly, you are going to be giving up control, and, therefore, trust is of paramount importance. Your child could sell the property without your permission, yet you won’t be able to sell it without theirs.
Moreover, you do need to consider outside parties. If your son or daughter was to get divorced, for example, then the ex-spouse would have a legal case against their estate, and this would include your property.
For this reason, it is important to consider the situation of your children with care, and to use the services of experts who can help you to enter a property transfer agreement whereby you are offered as much protection as possible.
The hottest Investment Property Location Right Now Is Dubai
There are many reasons why people are interested in real estate in Dubai, including those who are looking for a property for investment purposes. Below, we will reveal the many benefits of buying an investment property in Dubai.
- Growing population – The first benefit of property in Dubai is that there is a growing population. People from all over the globe are coming to Dubai so they can search for more business opportunities and improve their career.
- High rental return – Of course, when buying an investment property, you will be interested in the potential rental income you can make. You can expect to make a rental yield up to 10 per cent on average in the best performing areas of Dubai. When you compare this with the 3.21 per cent average in London and the 3.91 per cent average in New York, you see just how well the rental market is performing in Dubai.
- Low acquisition cost – When compared with other real estate capitals across the globe, acquisition cost in Dubai is a lot lower. In London, you will pay around six times as much for the same square foot in Dubai.
- Huge range of options – Another benefit associated with Dubai property for investment purposes is the fact that you have a huge assortment of options to choose from.
- Growing economy – Last but not least, the economy has consistently been growing and will continue to do so. This is vital, as when you invest your money in real estate, you are not merely investing in the property itself, but you are also investing in the economy of the country.