In the UAE’s real estate landscape, build-to-rent investment has seen a significant surge in recent years. The demand for rental properties has exponentially increased in big cities like Dubai. This has led many investors to consider investing in the rental area.
Although BTR has become an attractive investment opportunity, several misconceptions surround the concept. For instance, some people think that build-to-rent is only for large-scale investors. Similarly, some might consider it an easier investing approach.
It is essential to debunk all these myths so that you can make an informed decision. Are you eager to learn more? Keep reading the article, as it will shed light on the common misconceptions about build-to-rent investment.
Top 6 Myths About Build-to-Rent Investment
Do you think all the BTR projects are the same? Did anyone tell you that rental units attract only young renters? If yes, it would be better if you do not believe these misguiding concepts. They are all just misconceptions that stem from the confusion and misunderstanding surrounding this investment landscape. Addressing these false concepts will help you steer clear of potentially detrimental decisions. Let’s focus on the top six myths about build-to-rent investment:
BTR is Easy
The build-to-rent investment provides several opportunities to aspiring investors. Its widespread popularity and usage have led many people to think that it is an easy investing strategy. Individuals might also believe this false assumption after reading the success stories of other investors. However, in reality, investing in BTR real estate requires multiple considerations and careful steps.
You need to be adept at creating a winning strategy, navigating the local laws, and maintaining ongoing property operations. If you lack these skills, you might not be able to benefit from this potentially beneficial investment tactic. This is where you need help from an expert fund manager. You can reach out to professionals at Global Partners to successfully invest in BTR.
It Is Only for Large-Scale Investors
The term real estate can, sometimes, be intimidating for newcomers. This gives birth to another common myth about BTR. There is a misleading idea that it is only for large-scale investors. The requirement for a high initial capital also plays a significant role in spreading this misconception.
So, if this is a myth, what is reality? Today, build-to-rent has become more accessible to different types of investors. If you do not have enough funds, you can participate in smaller BTR projects designed specifically to ensure lower entry costs. Similarly, there are shared investment opportunities in the larger projects.
All BTR Projects Are the Same
Another widely spread myth about build-to-rent investment is that all BTR projects are the same. People usually believe that they offer almost identical types of properties in the same zones with the same terms. Where does this myth come from? The answer lies in the BTR itself being an umbrella term.
So, what is the truth? In the real world, all the build-to-rent projects vary in different aspects. They differ in terms of size, location, target audience, and other factors. Some units specifically target millennials while others are built for retirees or senior citizens. It is all about your investment strategy and customization preferences.
Rental Units Are Only for Young Renters
The trend of renting a house has tremendously increased among millennials and Gen Z. Most BTR investors are focused on building units for these demographics. But, it does not mean that rental units are exclusively for only young rentals. As discussed earlier, all the projects share some differences.
These dissimilarities account for targeting a wide range of renters. This is because families, professionals, and retirees also look forward to renting suitable places in big cities. In fact, in metropolitan areas like Dubai, expatriates make up a large portion of tenants. Therefore, people build projects keeping these renters in mind.
Haunted Houses Are Cheaper
The build-to-rent properties can take a serious turn when it comes to haunted places. The misconceptions surrounding such houses are more prevalent. A home with a history of violence or other misfortunate incidents is often dubbed as haunted. This leads individuals to think that these units must be cheaper.
The reality, however, is far from these misleading concepts. While such properties might be priced lower than their counterparts, they have hidden costs and other complications. These include legal complexities, potential difficulties in renting such places, and a risk of reputational damage.
BTR Is Risk-Free
When you compare the build-to-rent with the build-to-sell investment approach, the former might seem like a risk-free strategy. The thought that people always need a place to live also paves the way for such misconceptions. However, BTR is not entirely protected from various pitfalls.
The risk factor can become more obvious when you lack the required skills, expertise, and experience. BTR investment, like any other type, is also prone to market downturns and volatility. The shift in tenant demand can also play a significant role in this regard. That is why you should always invest in this area after consulting an experienced professional.
Unlock the Potential of BTR Now
Several misconceptions surround build-to-rent investment opportunities. For instance, believing that it is easy or that BTR is only for large-scale investors is a myth. Contact an esteemed fund management company now to unlock the real potential of BTR.
As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.
