Buying your own property is always a better decision if one can afford, but does it make nous to buy a property now?
Eye-catching payment plan, firsthand inventory and price tweak, indeed give homebuyers now a better choice in UAE’s property market. The UAE real estate is relatively an innovative marketplace and gives a prospect to build wealth and establish the financial security in the long-term. Like many international markets, UAE property market has seen swings; however, the current economic conditions offer perhaps the best chance for home buyers and investors to apprehend the long-term cyclical nature of the real estate market.
Off-Plan Inventory with Attractive Payment Plan Option
Indeed, buying property during off plan construction comes with a larger benefit as it presents the selection of lower price with attractive payment plan structure, and on top of all developer’s promotional campaigns along with the long-term financial support system persuade the investors to capitalize the opportunity. With amply of off-plan properties inventory imminent in the market around the UAE, it turns out to be easy for homebuyers to pick the best. Conversely, off plan property selection, gives the pleasure of being the first owner and the flexibility to choose your floor and community view. Today, several developers are offering 30-70 percent payment plan option added to post-handover which indeed gives the flexibility to arrange finance and budget expenses accordingly. Fascinatingly, last year in the third quarter off plan counted for around 74 per cent of the residential sales transactions.
Correction in the property sale prices
As sales prices have seen a correction of relatively by 7-8 per cent compared to the previous years, the residential market is now near the bottom of the current cycle. This means that there are a lot of prodigious deals are available in the property market.
Buying Fundamentals
UAE’s real estate market is investor-friendly, strict rules and regulations formed by the regulative authority protect the investments and encourages genuine transactions, than the inflationary trends. With an off-plan property, buyers can get the advantage of cheaper prices offered by developers, who also offers structural payment plans so buyers can pay in segments as the construction goes on.
When we talk about fundamental of buying, the foremost aspect is to understand why investing in the real estate. Always plan for the long-term appreciation as the industry is recurrent yet satisfying. Another, important is to ensure that you know what is affordable. If one has enough cash reserve, then I would suggest making the upfront payment. However, one can even consider a mortgage, as the down payment will form the equity. Lastly, comes finding the right property with the right location. The correct location gives larger appreciation in capital value during the cyclic nature. It is always judicious to think prudently about location, construction quality, developer reputation completion status and quality of infrastructure and building amenities. Consulting with an expert will guide you as per the requirement. Certainly, there are a number of costs associated with the purchase and these must be carefully measured before signing the agreement to ensure that the purchase is within the means. Now calculate over the years in comparison to spending close to similar purchase amount for the same period in annual rents. Eventually, one can experience that the total cost of homeownership is less under the current circumstances than the total cost of renting a similar property in the emirates.
This number calculation might be the rightful way to evaluate the buy or rent option on paper. However, the decision eventually compresses to affordability and liking.
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