Payment options when buying a property

Payment options when buying a propertyImage Credit: Supplied

A home you can call your own is a good investment of a lifetime. The UAE has various estates to choose from, with some developments available for ownership by foreign nationals.

There are many ways of procuring a property. The investor just needs to conduct proper research to find the best option that suits his requirements.

Either dealing directly with a private seller or a sales agent, the easiest way to procure a property is through cash. This is hugely advantageous as cash buyers generally get huge discounts as opposed to those who are buying through mortgage. They also get the house outright, without worrying about principal and interest rates.

Another way of getting one's dream home is availing oneself of the relaxed payment plan mostly applicable to off-plan properties. Majority of the developers in the UAE are currently offering this to attract more buyers. Cheaper than ready properties, there are many off-plan homes to choose from across the emirates. Should you opt for this tempting offer, do a background check on the developer and ensure you work with a reliable agent.

Home mortgage loan is another option, especially for high-income earners. The mortgage cap law states that expats can borrow 75% of a house's value for a first property of less than Dh5 million, while UAE nationals can borrow up to 80%.

Personal loans from banks or independent lenders may be considered if you already have savings and just require a little amount to add to it. Although a bit scary, you may avail yourself of this plan if you feel you are secure in your workplace and if your company is stable.

The rent-to-own scheme used to be a trend in the UAE until it became a thing of the past. Currently, developers and real estate experts are mulling over the idea of reintroducing it to boost property transactions.

Whatever option suits your needs, ensure you have conducted proper research. It may also help if you seek the advice of a mortgage advisor or lawyer.

Handy Hints:

• Buyers need to prepare to pay fees and stamp taxes for property transfer

• Conduct a background check on the developer and work with a reliable agent

• Seek the advice of a mortgage advisor or lawyer before signing any contract

Find out why you should invest in real estate before 2016

Source: Alfred Ocianas, Special to Properties

The writer is a freelancer


For Rent


View more properties

For Sale


View more properties