Owning property costs less than renting one
July 5, 2018
The desire to own a home is one that occupies the minds of most expatriates in Dubai. Against a backdrop of accessible real estate and payment plans that cater to all demographics, why hasn’t the trend changed, and why are more people paying a monthly rent instead of settling a monthly instalment that will result in the ownership of their own home?
Experts say that at least 40% of a resident’s income goes into paying rent and the conventional wisdom dictates that in order for someone to own their own home, they would be expected to invest up to 30% of the value of a property as a down payment. This misconception is the prime reason why most potential customers steer away from becoming owners, denying themselves the liberty and confidence of buying their own home.
While there are many properties that do indeed require bank loans and meticulous financial management, the numbers of accessible homes are actually on the rise with some properties requiring low monthly instalments and little to no down payment. Case in point is MAG LD’s upcoming MAG EYE being developed in Meydan — home-seekers can own their own apartment there for as little as AED 1,234 per month with a nominal down payment fee.
But it’s not just the prices that should attract residents to become owners. Here are five reasons why every long-term resident should invest in their own home or property in Dubai:
- The time is right
It’s always a good time to own property in Dubai, but this is probably the best time to do so. The UAE Government’s commitments to stimulate the local economy and the recent visa and foreign ownership changes will benefit property prices in the long run, and affordability is playing an important role on the market as well.
- Softening prices and attractive payment plans
The softened sales market has made the cost of property ownership low enough for long-term renters to consider becoming owners. No longer should residents be intimidated with exorbitant down payment dues; developments are now being catered to welcome all demographics of the population in order to best deliver upon their demands and needs.
- It’s a great investment
Owning property need not be exclusive for residential reasons — many owners invest in a home as a means of generating passive income. If your apartment is in a good location, for example, letting it will be easy, especially if it’s mid-range — the most in-demand and sought-after range on the market. The value alone is worth the investment, with experts estimating an appreciating real estate market and high ROI yields on many property plots.
- It’s cheaper than renting in the long run
If one were to do the math, the amount accrued from paying rent will surpass the amount that would be allocated to owning a property over the same time — all additional fees considered, including the down payment, DLD, and registration fees. Residents should not be deterred by the preliminary payments and instead should take note of the total amount being paid over the same period.
- You own a home in Dubai
This may sound obvious, but consider the benefits of owning a home in one of the fastest developing cities in the world, with exceptional public transportation, advanced facilities and infrastructure, and the finest amenities on offer, on par with global standards, if not better. Dubai is also one of the safest cities in the world and one of the most stable global economies with a resilient marketplace.
- The time is right
– Talal M. AlGaddah is the Chief Executive Officer of MAG Lifestyle Development and CEO Middle East Awards’ ‘Young CEO of the Year’ – 2017.