Top Payment Options for Dubai Real Estate Purchase

Dubai real estate industry boasts an array of avant-garde properties; from villas and penthouses to apartments and townhouses. Sophisticated homes within communities and proximity to retail stores, entertainment hubs, and recreation facilities are available for sale with flexible payment options for UAE nationals and expats alike.

Changes in Dubai real estate regulations have made it easy for anyone to acquire property in the city. Once you spot your ideal property, you can touch base with a reliable real estate Dubai broker to help you with viewing and assessing the available payment options.

For foreigners, we always advise our esteemed clients to analyze exchange rate fluctuations. If you want to purchase a property in Dubai, the following pointers will help you determine the best payment options, suitable to your needs and preferences.

Cash Payment
It is always a wise to shy away from debts, and one way to do this is to pay for your property in cash. There are several benefits of buying a property in Dubai in cash:
· Paying for a home in cash means you are free from interest fees.
· You will not need to do a lot of paperwork for the property.
· You are more likely to negotiate a better deal or obtain a good discount.

Disadvantages:
· While cash is ideal for your financial health, it is convenient if you have high fluidity. 
· It also not suitable since it’s not cheaper for everyone.

Mortgage
If you are not ready to spend a lot of cash on property purchases, getting a home loan is a better option. However, your mortgage loan is influenced by various factors including the value of your home and credit score.

Here are the advantages of a home loan as a financing option:
· It features affordable payment plans. (with some term offering up to 25 years of repayment).
· Helps retain your liquidity as a buyer.
· You can get discounts from developers.

Disadvantages:
· It involves a lot of paperwork.
· It relies heavily on your credit score.
· Repayment amounts for mortgages are quite high and so are the interest rates.

Payment Plans
Different developers offer a range of payment plans. Here are the advantages of acquiring a property in Dubai through payment plans:
Post-handover: some developers allow you to lease a property and pay with the rental income.
Easier paperwork compared to mortgages.

Disadvantages:
· Payment amounts are higher than mortgages.
· The payment period may be short.
· You cannot negotiate for the duration or amount of payment.

Rent-to-own
This is perhaps the most affordable method of buying a property in Dubai. If you love a ready-to-move-in property. 
You can rent the property for some period with an opportunity to buy the property before the leases come to an end. Here are reasons to consider a rent-to-own option:
It is recommended for first-time buyers and end-users.
It is an affordable payment option.

Disadvantages
· The lease term is short, usually between 3 and 5 years. You will either have to buy or move out of the property.
· The prices of properties for this option are higher compared to other payment options.
· The rental price may be high than the normal market rate.
· You may have to cater for the repair and maintenance of the property.

A reputable real estate Dubai agency can help you understand more about properties in the market to make an informed decision when choosing payment options for the property. For help visit our website.

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