To Rent or Buy a House in Dubai: Which is Right for You?
Everyone thinks that it is the best time to invest in a Dubai property today. Everything is working on the favor of buyers; the market condition is good and property prices are low. Many investors are still sitting on the fence, perhaps having doubt about living long-term in Dubai or lack of information about the requirements and benefits of living in the region.
The following are some of the important factors to think about before deciding to buy or rent a house. Figure out which one is more favorable for you than the other.
Consider the Length of Time You Will be Residing in Dubai
Before you decide to rent or buy a property, review your plans whether you are staying at least for 5 years or less than that. There are many steps to owning a property in Dubai. It’s more convenient to rent a villa or an apartment if you are not certain of your plans or just testing the waters. If you are staying for only a few years, and might need or prefer to move to a different country, a rental property can be vacated after a 3-month notice.
Think About Your Financial Status
It’s easy to decide on buying a property in Dubai if you have a stable job or financially stable. Bear in mind that expats have to pay 25 percent minimum as a down payment. It’s a huge amount and on top of that, you need to pay the monthly repayments. The monthly repayments are also applicable to tenants. Due to this, it might be wise to consider paying monthly towards owning a home after 5, 10, or 25 years. There are great perks to it. If in case, you decide not to reside in Dubai, you can put up the property for rent and use the rental money as payment for the mortgage. If the property has been fully paid, you can keep the money as extra income.
Assess the Market Conditions
Check the real estate market and the trends before you decide to buy or rent. Currently, the property market in the UAE is favorable to buyers with stronger ROI. This is based on a 2017 annual report which is based on 94,000 listings. Since prices have fallen in the UAE, the market is ripe for buying properties for investment. It won’t stay the same for long so investing in property now is a good move.
Know the Amount of Control You Need
You have more control in terms of customization and modifications of your home when you own it compared to when you are simply renting it. For a tenant, even the slightest change on the property will require a NOC from the landlord for the required permissions.
As a property owner, having total control over your own property also comes with a price. Landlords need to pay the maintenance fees, service charges, and also for repairs and maintenance expenses. The landlord’s financially liability also depends if the property is on a 99-year lease or if it is on a freehold basis.
Do the Research and Hire a Good and Trustworthy Agent
It does not take years to decide whether to buy or rent a property in Dubai. It is crucial to keep abreast of the market condition, real estate forecast, and trends for the following years for you to have an informed decision. Keep in mind that the market is fluctuating, and the property prices will not stay low forever. This requires you to decide with the right timing as well.
It’s also necessary to find a real estate agent who is not only knowledgeable in the area and type of property you want to invest in but one that you are comfortable to deal with. This is particularly true for first-time investors who are dependent on the agent for a volume of information. This agent must be trustworthy enough to point you in the right direction. It’s necessary for you to spend time with a real estate agency like ReDubai.com to look for the agent.
After all, these are considered, then you can be certain that you have an intelligent decision whether you are buying or renting a home in Dubai.