What you need to know before purchasing a residential property in Dubai. - Blythe & Company

The most frequent question we get asked from people that are interested in buying Real Estate in Dubai is how to get started. Luckily, it is less complicated to own a property in Dubai than almost any part of the world. There are also various options you can consider when it comes to actually making a payment for the Real Estate of your choice. Gone are the days where you have to choose either financing the property or paying all cash before owning a residential property in Dubai.

Firstly, there are ready properties with up to five years post handover payment plan, usually you will make about 20% down payment and pay 80% over five years.This payment structure offers a lot of advantages, asides from saving on interest rates from mortgages, you could also use your rental income to pay down the 80% owed to the developer. Unlike most countries where rent are paid monthly, In Dubai you could get your rent in one cheque from the tenant, this means you can go without having to pay from your own pocket and just pay down your property with your rental income. The most interesting part is the capital appreciation the property would have accrued over five years as most of these developments are new to the market.

The second option worth considering is off-plan purchases. This is a really flexible option as there are a lot of developers that offer a payment plan starting from 1% of the purchase price a month. Once the property is ready, buyers can pay off the outstanding balance. However, in some cases the payment plan extends till after completion of the project which then give the buyer the opportunity of having a post handover payment plan, this means the buyer can continue paying in instalments even after they have taken possession of the property. This doesn’t happen anywhere in the world that have prime Real Estate!

The third option is simply paying 25% of the purchase price for a ready property and financing the remaining 75% of the property cost. Fortunately, Dubai banks are always very helpful when it comes to lending to foreigners as long as the required criteria are met.

Lastly, will be to totally pay cash for your property if you have the means, enjoy your rental income and capital appreciation in the long term.

If you would like to know more or have further questions on how you can make the most of your Real Estate Investment, please don’t hesitate to contact us at info@blytheandcompany.com.