Payment Options A-Plenty
It is getting easier and easier to buy property in Dubai. It's probably a reflection of the growing competition for sales with all the towers coming up--particularly in the Dubai Marina. I'm sure some agencies are sticking to their high-priced, inflexible schemes, namely the big guys--Emaar, Nakheel, Dubai Holdings, etc. But some of the smaller players are coming up with new schemes that seem to benefit equally the buyer and the seller.
MAG PDD the MAG 218 developer will negotiate a payment plan with the buyer. Dubai Select, sales agent for the Torch, has it's own 15-year payment plan which effectively cuts out the banks and all the hassles with trying to secure a mortgage. On the face of it, it seems you simply make the initial downpayment, sign the agreement and you've got what amounts to a low interest--much lower than the banks--mortgage plan.
With such a plan there's no need to prove your finances and gather all kinds of documents. It makes so much sense to cut out the banks. The sales agent makes an easy sale and if the buyer defaults they simply reposses. My guess is the legal situation in the UAE will make it easier for them to reposses than for the buyer to fight it. (And how is this any different from the risk of facing repossesion on default with a bank loan?)
On the other hand the reduced hassle and lower interest rate benefits the thoughtful buyer. The burden on the buyer is to be responsible and careful for his own sake, to minimize the risk of default. This is preferable, however, to having to jump through hoops to prove your worthiness to banks--and what would you get for all your troubles, anyway? You would get the chance to fork over a lot of additional cash, well above the actual value of the loan. The stringent requirements to prove one's finances is totally for the benefit of the bank and is of little or no value to the buyer. So, why not cut them out? The option to do so is thankfully emerging.
I'm sure there are or will be other sales agents and developers offering similar schemes. A new development being promoted in an inland development, Dubai Lagoon located in Dubai Investments Park, offers a 7-year payment plan with 50% paid in the first two years at which time the buyer may take possession of the property and pay the remaining balance in monthly installments over a 7-year period, and there are absolutely no interest charges! Unit prices are as low as Dhs 250,000 for a studio apartment and Dhs 600,000 for a 2-bedroom unit. It is clear that opportunities are really starting to open up for buyers in Dubai's property market.
Dubai Lagoon in Dubai Investments Park--in Jebel Ali off Emirates Road.
Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.
MAG PDD the MAG 218 developer will negotiate a payment plan with the buyer. Dubai Select, sales agent for the Torch, has it's own 15-year payment plan which effectively cuts out the banks and all the hassles with trying to secure a mortgage. On the face of it, it seems you simply make the initial downpayment, sign the agreement and you've got what amounts to a low interest--much lower than the banks--mortgage plan.
With such a plan there's no need to prove your finances and gather all kinds of documents. It makes so much sense to cut out the banks. The sales agent makes an easy sale and if the buyer defaults they simply reposses. My guess is the legal situation in the UAE will make it easier for them to reposses than for the buyer to fight it. (And how is this any different from the risk of facing repossesion on default with a bank loan?)
On the other hand the reduced hassle and lower interest rate benefits the thoughtful buyer. The burden on the buyer is to be responsible and careful for his own sake, to minimize the risk of default. This is preferable, however, to having to jump through hoops to prove your worthiness to banks--and what would you get for all your troubles, anyway? You would get the chance to fork over a lot of additional cash, well above the actual value of the loan. The stringent requirements to prove one's finances is totally for the benefit of the bank and is of little or no value to the buyer. So, why not cut them out? The option to do so is thankfully emerging.
I'm sure there are or will be other sales agents and developers offering similar schemes. A new development being promoted in an inland development, Dubai Lagoon located in Dubai Investments Park, offers a 7-year payment plan with 50% paid in the first two years at which time the buyer may take possession of the property and pay the remaining balance in monthly installments over a 7-year period, and there are absolutely no interest charges! Unit prices are as low as Dhs 250,000 for a studio apartment and Dhs 600,000 for a 2-bedroom unit. It is clear that opportunities are really starting to open up for buyers in Dubai's property market.
Dubai Lagoon in Dubai Investments Park--in Jebel Ali off Emirates Road.
Go to DM Blog latest posts, Dubai Marina Communities or MAG 218 Community homepage.
posted by B.D. at
Thursday, January 19, 2006
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