How Do You Buy Properties In Dubai On Instalments?
If you are considering buying a property with monthly instalments in Dubai and want to learn more about the process and why instalment plans are an excellent option, you have come to the right place. This quick guide to Dubai real estate investment focuses on how monthly instalment plans work, how they benefit you and what kind of down payment you will need.
Buy a property with monthly instalments in Dubai
If you are considering buying a property with monthly instalments in Dubai, you will most likely do so through a developer that offers an appropriate scheme. The process typically involves the following steps.
1. Ensure you understand the instalment plan
Instalment plans come in many shapes and sizes. They include post-handover plans, construction-linked plans and custom plans. Each plan will vary in detail and require you to pay a certain amount up front and commit to regular payments over an agreed period. Make sure you understand every facet of the instalment plan.
2. Conduct due diligence
Before you sign any legal documents, do your due diligence on the developer, project and property. Have a legal expert examine any paperwork and ensure you are happy with both the developer and the agreement.
3. Reserve your property
Having selected your property, negotiated the terms of your instalment plan and conducted your due diligence, it is time to reserve your property. You usually do so by making a reservation payment and signing an agreement.
4. Signing the Sales and Purchase Agreement
Finally, review the Sales and Purchase Agreement (SPA) for your property and make any necessary initial payments. What happens next depends on the type of instalment plan you have committed to. However, in almost every case, this is when your payment timeline begins and you start paying instalments.
5. Transfer of ownership
After completing the agreed payments, the developer will transfer ownership of the property to your name. You may now need to complete post-purchase processes, such as setting up utilities and applying for an occupancy certificate.
What are the advantages of buying a property with monthly instalments?
The main advantages of buying a property with monthly instalments are:
• Affordability - Instalment plans make investing in property much more affordable for investors and future residents alike.
• Easier entry into the market - These plans ensure property ownership is accessible to people who may not have significant savings.
• Better cash flow management - Instalment plans make managing cash flow and balancing income and expenditure much easier.
• Generate rental income - Investors can start to earn a rental income on properties before they are fully paid off.
• No need for a large down payment - Instalment payments often reduce the amount you have to pay upfront for a property.
How much down payment is needed to buy a property in Dubai?
The size of the down payment varies from property to property and developer to developer. However, down payments for residential properties are typically around 20% of the property’s total value.
To learn more about buying a property with monthly instalments in Dubai, contact the Tilal Al Ghaf team. A world-class developer that designs and delivers state-of-the-art residential properties and helps build vibrant communities across the city, Tilal Al Ghaf offers a range of practical instalment plans for investors looking to make Dubai their home or expand their property portfolio.
