Whether it’s from an investment point of view or enjoying the luxuries that come with it, buying a property in Dubai is a dream of many. However, not many are able to pursue it because of the high costs involved. Having said that, there’s a way by which you can become a proud owner of a beautiful home in Dubai without breaking the bank. We are talking about buying a property on installments here.
It is a widely followed process not only in Dubai but worldwide. Buyers make payments in monthly, quarterly or yearly installments and get ownership of the property on the handover date, which varies from project to project.
In this article, we have discussed the entire process to buy property in Dubai on installments in detail and what benefits it offers to the buyer. Continue reading to know more!
The process to buy property in Dubai on installments is usually straightforward. However, if you’re applying for a mortgage, there will be initial hassles as you’ll have to get your loan application approved. Bear in mind that in the case of a mortgage, you will pay installments to the bank, instead of the developer.
Here’s the process for property buying on installments in Dubai explained in detail:
The process starts with finding the right property that meets your requirements. Decide the type and location of the property. You can check out the Zoom Property portal or mobile application to find the best listings for residential properties in Dubai.
Once you have selected a property, inspect it thoroughly to ensure there are no hidden flaws. Also, get it evaluated by professionals.
Property developers in Dubai offer different payment plans for buyers to make payments in installments. They are as convenient as 10/90. This means that the buyer only pays the 10% initially and the rest of the amount is paid in installments. Choose the plan that suits your budget and is convenient for you.
Next, create a buyer and seller agreement after negotiating the price with the seller/developer. It should include all the terms of the deal.
If both parties agree to the terms and conditions listed, they have to sign the MoU (Memorandum of Understanding), also known as the agreement of sale. At this stage, the buyer is also required to pay a security deposit, which is 10% of the total value of the property.
The next step is to apply for the NOC. This is mandatory for the property transfer to take place. And once the transfer has taken place, the buyer becomes the owner of the said property. They will then have to make the regular installments as per the agreement.
It is important to know that the transfer won’t take place if the buyer doesn’t have the required documents that include a manager’s cheque, original identification documents of both parties, original NOC and signed MoU. Also, the process may vary if the property in question is an off-plan one.
Buying property on installments comes with many perks. Some of these are:
The option to pay in installments for a property is no less than a blessing for those who cannot arrange a huge lump sum at once. Although the process may seem more tedious, the end result favours the buyer as they get to own a property in Dubai, which is a dream many people wish to turn into reality.
When you know a particular chunk of your monthly income will be allotted to paying the installment, you’ll spend your money wisely. This helps to avoid overspending and facilitates better management.
Many investors, despite having adequate resources, prefer this method instead of making a lump sum to buy property. The reason? It helps to protect their savings. If they are putting all their eggs in one basket (allocating all their resources on one project), the risk level is higher. On the other hand, by investing in different projects, their chances of earning revenue increase.
In all, the property market in Dubai is teeming with lucrative options. So, it’s the right time for you to obtain the benefits of the option to buy property in Dubai on installments. Check out the listings available on Zoom Property for the best properties in Dubai.