Buying a property in Dubai doesn’t require a handful of cash, with all the payment plans available. Whether it is a post-handover payment plan or a rent-to-own scheme, you can now buy property easily, instead of renting.
While many residents rent, a good number also become homeowners through flexible property payment plans. Here, we’ll walk you through the most common property payment plans in Dubai.
4 Types of Payment Plans for Buying a Property in Dubai
Dubai’s luxurious lifestyle attracts a significant number of investors. However, some of the buyers or investors prefer not to make a complete payment. That’s where the different types of real estate payment plans come in handy.
These plans offer mutual benefits to both the developer and the investor. It is critical to understand that for a payment plan to work, both parties should agree to all the conditions.
Check out these property payment plans to help you make the decision based on finances.
1. Post-Handover Payment Plans
The term “post-handover payment” refers to the payment after receiving the property. However, investors have to pay a specific percentage before the handover. These payment plans are mainly available for off-plan projects.
Post-handover payment options were first available for bigger constructions in late 2013. However, private developers have jumped on board due to the popularity of this payment scheme.
This sort of payment plan is often marketed to investors. It is quite convenient for buyers and investors since they can pay almost 50% after the property’s handover.
Additionally, Dubai’s payment schedule lasts three, five, or even ten years. The time span of the post-handover payment plan is determined by the kind of project and the developers in Dubai.
2. 10:90 Payment Plan
Developers often provide this option for newly developed properties in Dubai. When reserving a home under the 10:90 payment plan, the buyer must pay 10% of the property’s total value as a down payment. The remaining 90% is in installments.
Besides, this property payment plan in Dubai enables buyers to own a property and pay the value in installments. Investors also have the option to choose new projects with a flexible payment plan that requires a minimum down payment.
3. Payment in Instalments
It is one of the most popular payment options when purchasing real estate in Dubai. The buyer must pay a certain percentage of the payment plan at two separate times before they get the property.
For instance, when the buyer and the builder decide on a 60:40 payment plan, the buyer pays 60% at the start, and the rest, 40%, is paid in installments after the handover.
The percentage of this payment plan is not constant and varies across different builders. However, the plan is usually in the following proportions:
- 10:90
- 20:80
- 40:60
- 50:50
- 60:40
- 70:30
- 25:75
4. RENT TO OWN PAYMENTS
The purpose of rent-to-own property in Dubai is to pay rent and own a property later. The rent-to-own payment plan is only offered for residences that are ready to move into and geared toward end users. It works better for those who lack the funds necessary to pay for the property in full upfront.
Some of the areas where you can find rent-to-own properties include the following:
- Downtown Dubai
- Dubai Creek Harbour (The Lagoons)
- Dubailand
Following this strategy, the landlord and renter sign a lease agreement that lasts for the agreed years. This agreement states that if the conditions of the contract are properly fulfilled by both parties, the renter will become the property owner.
With this arrangement, the renter may use the rent as a down payment on their home. For the remaining sum, they may get a mortgage from banks or private lenders.
FAQs
Yes, you can buy property in Dubai by paying the amount in installments. However, both the parties should agree to the aforesaid payment plan type.
The buyer must pay 60% of the total amount at the start, and the remaining 40% must be paid in installments.
We have listed down just a few payment plans, but they vary depending on several factors. It is important to note that every project or property in Dubai doesn’t have the same payment plan. Moreover, you can find several properties for sale in Dubai and look out for various payment plans available.
Stay tuned to the Property Finder blog to learn more about the different tips and ways to own a property in the UAE.
