John Paulson - a New York hedge fund manager - made an estimated 3.7 bn US$ betting on the subprime crisis. He believed in a falling market at a time when nobody did. Now John Paulson bets on the recovery of the real estate market. Reason enough to check this out.

Real estate is one of the most popular investments in the Muslim world. First of all real estate - especially residential - is an asset class, which complies easily with the Shariah law. Moreover usually real estate gives a solid and stable return to its investors.

However many people are afraid as they burnt their fingers in the real estate bubbles all over the world. Real estate seems an investment nobody wants anymore!

But isn't that a good time to invest? Most of the real estate markets are down 30-50 % from its peaks. Look at the UK, USA, Spain, Irland or Dubai, just to name a few. Maybe these markets will even fall more, but do you think markets will fall even more in the long run?

Of course nobody knows where we are in a few years from now. But history tells us that what goes down must come up again. That's why we believe in anti-cyclical investments!

Buy low and sell high. This may take a while, but take your time and check out the markets.

Important questions you may raise before you invest in residential real estate: 

• Location, location, location!

Is there are bus-/metro station nearby? Is it on a quiet or busy street? Is there are supermarket/bakery,... nearby? Is it on the outskirts or in the city centre? Is there a commercial area closeby? Is there a parking lot on/near the site?

Choosing the right location is probably the most important issue when investing in real estate.

• Total return!

Of course without a solid yield it makes no sense to invest. The Total return consists of 1. rental income and 2. appreciation (in the long run!) of the real estate. So check out for: Are there any deferred rental incomes? Why? Is the property fully let? Is there potential for rent increasings? Is there potential to reduce non-reimbursal costs? Is the location good, so over time there will be appreciation of the building?

• Building quality and due diligence!

Moreover check out the following:

Year of construction? Is there a repair and maintenance backlog? Any private or public restrictions/eases?

Probably for this issue it's best to ask for a survey as there are so many points to check.

This is just a short checklist. So if you're not really familiar with real estate investments try to get professional help!

We found this video for you, which actually was published around 7 month ago, but still is of high relevance. Just enjoy watching!

TO OUR FORTUNE IN 2009!