The National recently posed the question: Should UAE residents focus on retirement or paying down their mortgage? Here’s what Lukman Hajje, CCO, had to say in the article:
Lukman Hajje, Chief Commercial Officer of Propertyfinder Group in the UAE and Chairman of Mortgagefinder, says the UAE mortgage cap law requires salaried employees to pay off their loans by age 65, or 70 if self-employed, giving a clear target date. Stringent UAE lending criteria means that for most people repayments are manageable, he adds. “If you are able to get approved for a loan, the chances are you can afford it. Mortgage rates continue to be reasonable and repayments are typically lower than the rental equivalent on most properties under Dh5 million,” says Mr Hajje. The real threat comes not from your mortgage, but high-interest unsecured debt such as credit cards and personal loans. “Live within your means, borrow only to purchase income producing or capital value appreciating assets, and stay on top of all your debt repayments,” says Mr Hajje. You then have to draw up an investment plan, one that takes into account your personal circumstances and objectives. “Do you require income, or are you a long-term investor chasing capital growth? Are you seeking to grow your assets, or preserve those you have? The stock market may offer greater long-term returns, but can you withstand the short-term volatility? Ultimately, these decisions are down to you,” says Mr Hajje.
To read the full article click here.