Many expats living in the UAE prefer to rent a property rather than buying one. There are several reasons for it. Firstly, most of them do not plan on staying in the country for too long. Secondly, they question their job stability, or they are not able to secure a required 25% down payment.
However, most of them stay longer than planned. For those with a stable income, investing in property nowadays is a wise choice. “Current market prices for end users in some established communities are possibly the most enticing in almost nine years. Coupled with attractive mortgage rates from banks and financial institutions, this means it has never been a good time to purchase”, says Paul Christodoulou, CEO of AQUA Properties.
Great Time to Buy
If you plan on staying in the UAE for longer than just a few years and you have a stable job and a steady income, buying is surely more reasonable option in the long run. With a good financial plan, this is no longer the privilege of only those with higher salaries. “In most cases, the monthly mortgage instalments are cheaper than what monthly rental payments would be”, says Paul.
With sales prices going down due to oversupply and mortgage plans getting more appealing, the number of people who are considering buying their own property is increasing.
If securing a 25% down payment is not doable, choosing an appealing off-plan project is the way to go. That is to say if you are not in a hurry to occupy it. For instance, if you are looking for a spacious family home, among upcoming Dubai properties, Serena villas would be an affordable choice. On the other hand, if you are focusing on the ready properties, you will have to find a unit that caters to your needs depending on the current availability on the market.
According to the experts, Dubai real estate market is shifting from renter’s market to buyers’ market. With prices currently stabilising due to several government initiatives such as establishing The Higher Committee for Real Estate Planning, now is the right time to buy. Moreover, with the EXPO 2020 approaching it is expected that prices will possibly even go up again.
Things You Should Consider
If you are not familiar with Dubai real estate and its legalities, it is very important to choose the right agent who can advise you on it accordingly. Furthermore, he will warn you of potential hidden costs, such as maintenance service, insurance charges and other variable expenses.
Many homebuyers don’t think about how their property would rank on the market. Even when you are buying a home for your occupancy, you should consider the fact that one day you might wish or need to rent/sell that unit. Deciding on the project and the location that will allow you to achieve a higher profit in the future is crucial.
Furthermore, while choosing the unit many buyers think the bigger, the better. Often this is not the case. If you are not going to fully use the property, bigger built-up area can only result in higher costs. Even if, later on, you choose on leasing your property, smaller units bring better ROI in most cases.
Benefits of Buying a Property
To sum up, after 5 to 10 years on average, once you pay off your mortgage, you will be a proud owner of Dubai property. Whether you will continue living in it, or you will rent it out, you will definitely benefit from its ownership.