With NOVA, investors can choose from a variety of different real estate investment properties. Each property project has a different duration, ROI, annual returns, location, etc. One of the most important differences between NOVA’s properties is an investment strategy. This article will help you better understand what the Long-Term Rent strategy entails and how to make a profitable rental property investment with NOVA.
What is an investment strategy?
Each investor seeking how to invest in real estate has different goals and capabilities. Some buy a residential property and rent it out, making money from steady rental property investment. Others may purchase a fixer-upper to sell it later for a considerably larger amount. Another widespread approach is getting a house in a popular vacation destination and renting it to tourists for a short time for a higher price.
All these approaches to real estate property investments are called investment strategies. They allow potential investors to choose multiple ways of making money from the property market.
Long-Term Rent: A detailed overview
The Long-Term Rent strategy developed by NOVA is a perfect choice for anyone who is considering rental property investment. It allows investors to profit from real estate value growth and receive consistent returns from rental income. Let’s explore how this strategy works in more detail.
These are the main characteristics of the Long-Term Rent strategy. Now, let’s learn about the stages each property project goes through.
Long-Tern Rent: Key stages of an investment project
NOVA projects that belong to the Long-Term Rent strategy go through 3 main stages:
JVC 11: A case study
JVC 11 is the current project led by NOVA. With a duration of 3 years, it follows the Long-Term Rent strategy and has already entered the dividend period.
JVC 11 is a 1-bedroom apartment located in one of the most popular residential districts of Dubai. Because of this, it is a highly attractive option for people looking for a peaceful place to settle down in. All JVC 11 tokens have already been sold out, and the apartment is already rented out.
As the first tenants already moved in, the investors will get their first rental dividends in August and continue receiving regular payments every quarter (3 months). At the end of the project, JVC 11 token holders will also receive profit from property appreciation.
The initial property price of JVC 11 was $240,000, which included the property acquisition cost and additional expenses spent on legal support and tokenization of the apartment (check your Supplemental Offering Agreement for more details). Considering the duration of the project, the estimated ROI reaches 55.80%.
According to the forecasted earnings proportions, about half of these returns will be paid out as rental dividends while the other half is property appreciation. With the price of one token being $48, JVC 11 investors may expect a profit of around $27 before fees! Compared to other financial markets, JVC 11 is showing a great outlook, considering the Dubai real estate market is expected to grow significantly in the following years.
Make your first rental property investment now!
With NOVA, you can buy property tokens without worrying about payment system commissions — we will cover them for you! Start making money from the Long-Term Rent strategy with our new JVC 12 project. Buy your first token for only $38 and ensure consistent returns for the next 2 years. Download the app now 🍀
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