Dubai Metro : Complete online information Dubai Metro : Complete online information

lifestyle
family

Kids & Teens

Women

Health & Fittness

Education & Training

Your Home

Clubs & Orgs.


Local Media

Government

Info Line



Is it safer to Buy or Rent Property?

Finding a home in Dubai might prove to be a difficult task. If you are caught in a quandary over buying property or renting options here in Dubai, don’t worry you are not alone, there are thousands like you who have just moved in and are weighing different options that suit their lifestyles and attitudes.

Many people come to Dubai and they do not know how long they are going to stay so renting is ideal for them. They get housing allowances in their salaries so that if they wish to leave their jobs or return to their home countries they are entitled to terminate their tenancy contract and move bag and baggage.

Now with the new Dubai freehold property law coming into effect and the cost of renting out a house spiraling to the skies, many expatriates are now considering buying property instead of renting out at a whopping cost.

Buying property has several advantages since you are paying monthly installments for something that will eventually be yours. If you are renting, then nothing accrues to your benefit and the landlord benefits totally.

While buying a property on a 99-year lease, expatriates can get a permanent residence visa and change jobs at will. Moreover, the monthly liability on a household mortgage is almost equivalent to the rent that expatriates will have to pay. In posh residential areas like Bur Dubai or Karama or Ghusais, a single bedroom flat would cost anything between Dhs 50-65,000 while a two bedroom is priced between Dhs 100-120,000 per year.

The truth is that with the sheer amount of property coming into the market – both for leasing as well as for buying, there is no scientific way to predict exactly which way prices will go. Most property consultants believe that the ownership sector has a very healthy future. Evidently, the spate of new properties that are coming up bears testimony to the fact.

Despite the volatility of the property market, property consultants believe that this is a ‘bubble’ that might not burst. There will always be people from the Middle East, Europe and the rest of the world who are waiting to come to Dubai – despite the inflation and rising costs of living, the pros are more than the cons. The weather is good, there is no tax, job opportunities are immense and investors can get a lot more for their money.

So here are some of the factors that you need to consider:

To Buy Properties
• Ensure that your agent is registered at the Land department
• Identify what property you want and visit the area
• Set a realistic budget and speak to the financial advisor
• Don’t forget the extra fees for the advisor
• Have cash ready to pay a deposit and any hidden charges
• Have a realistic timeline, completion can take 45 days
• Read the documents thoroughly before signing anything
• Get a written document confirming the occupation date.

To Rent Properties
• Ensure that your agent is registered at the Land department
• Get to know the area that you wish to live in
• Find out how much rent you need to pay in advance
• Check your finances and speak to the bank about loans
• Look at the rent cap and think about future costs
• Make sure that the electricity and water connections are switched on
• Find all the hidden costs and even make provision for a contract cancellation fee.

Source : Editor, GoDubai.com


Media Watch (Previous Issues)





Home | CityLife | Real Estate | Lodging | Dining | Explore | ShowTime | Shopping | Business

Contests | Jobs | Search | Site Map | E-cards | Subscribe | Contact | Privacy Policy and Disclaimer | Help