As the Dubai property market sees encouraging signs that prices are returning, is it the right time and opportunity to move from a rental property and purchase your own home in Dubai?
As property prices increase, so do rental yields. This is great for investors who can capitalize on extra income, but is it also an opportunity for tenants to purchase property for themselves.
Financial institutions are starting to put liquidity back into the Dubai property market and RERA, the Government Department in charge of legislating the purchase of property has relaxed rules for overseas investors.
So, should we make the big step? Well, consider how much you spend a year on your annual rent in Dubai, with the likelyhood of a 5% increase year on year.
This could well cover the mortgage payments on the same property and you would own it out right within ten to fifteen years. In addition to the fact you would be using your accommodation allowance to buy out your own property, you will also benefit from the growth you could see in the valuation of the proprety.
At the moment your rent goes to a landlord and funds your living year on year. By purchasing now, even if the property did lower in value for a short period, will it drop by the same amount you would have spent in rent? If not, you would still be better off buying?
Also, there are many serviced apartments coming onto the Dubai property market in the next few months which will allow you to live there for as long as you like while receiving the five-star luxury service that comes with it, but the management company would also rent out your property on your behalf should you decide to take a couple of months away, or return permanently back home.
Certainly the financial benefits of buying over renting prove attractive and now that banks are starting to offer finance deals again, the proposition becomes even more attractive.
If you are reading this from outside Dubai; in the UK, India, Russia or USA maybe, how are your investments performing? What are the current interest rates? What has happened to the value of your home? Is it time to look towards your future by investing in a city which is showing strong returns on property investment?
Are you thinking of buying your own place in Dubai? What excited you about having your own property in one of the fastest growing cities in the world? It it the right time to step into the Dubai property market? We would love to hear your comments by posting about the Dubai property market below or you can email us at firstname.lastname@example.org