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Owning a property in Dubai is a dream come true for many. While many enjoy the perks of working in the city, very few get a chance to stay in a home that they own. If you are also planning to buy property in the emirate, it is no longer a tough task. A number of payment options have opened up for buyers. Banks as well as property developers have come up with schemes that allow buyers to pay for the property over a period of time.
The most common payment option is through a bank loan where expatriates can borrow up to 75% of the property value while 80% loan is provided for Emiratis. Most leading banks in the emirate offer a loan for a nominal interest rate starting from 3.39% to 3.99% per annum. Monthly installments are fixed depending on the amount borrowed. Accordingly, you have to pay your banker over a stipulated period of time until you fully repay. Additionally, property developers nowadays are offering relaxed payment plans that make it easier to buy new, secondhand or developing property.
In many cases, home buyers interested in properties priced under AED 5 million may have to pay only 25% of the total price as a down payment or 35% for properties over AED 5 million. An agreement is signed between the two parties and thereafter, stage payments are linked to varied construction milestones if you are buying an unbuilt home. At times, these off-plan properties are quite profitable because they are available at lower prices and the remaining amount can be paid when the property is handed over to the owners.
Easy short-term finance options are also offered by private companies who own completed floors in various buildings. The buyer generally has to pay a booking amount of 10% and 15% of the cost during handover. The rest can be paid in easy installments spread over three to four years. At times, buyers can even complete their payment term two years after the property is handed over to the client.
Flexible payment plans and easy availability of loans have made the property market extremely lucrative for the buyer and if you are willing to invest, a home can be the best option.
• Home loans are now available from banks, developers and private companies
• Short-term finance options are on offer and in easy installments up to 4 years
• Installment payments start as soon as the property is handed over to the buyer
Find out why buying property can never go out of fashion in Dubai
Source: Shabnam Mondal, Special to Properties
The writer is a freelancer