Is owning a property the right option for you?
The topic of buying a property versus renting is as old as the property market itself, and means there are many different schools of thought about it. While not an option available for everyone, the advantages of owning a home are evident to all.
If you think you cannot afford to buy a home, looking into various affordable mortgage products available may surprise you. Home ownership is now more in reach for most people than before, with banks aggressively re-entering the mortgage market after several years of rebalancing their books. In fact, buying with the right financing option can often be more affordable than paying continuously increasing rents in the city.
Mortgage payments can also be more stable over a period of time if your loan has a fixed interest rate, whereas rents often increase unpredictably. With rent cap rules becoming increasingly more lenient towards landlords, renters are often left at the mercy of current market trends and yearly increases in rents.
Owning a property can also build your home equity over a period of time and increase your wealth, while renting only adds to the financial security of the landlord. It offers the resident more than just financial benefits, It means having a permanent, secure place for your family to live and grow. This is becoming increasingly attractive to people making Dubai their permanent home for many reasons such as the tax-free environment, high standards of living and education, and reasonable salaries.
Renting on the other hand, can be unstable in situations where people often need to change homes almost every other year. Renters often spend huge amounts of money on moving and setting up costs such as paying security deposits, agent’s fees, and removal costs. While Dubai has a fairly robust set of laws designed to protect rental tenants, many people are not fully aware of their rights and often end up agreing to rental increases or eviction notices that are not allowed under the law. Being fully aware of current rules is crucial for both tenants and landlords.
- Buying with the right financing option is often more affordable than renting
- Renting can be unstable when people change homes almost every other year
- If you are planning on making Dubai your home. Consider the purchase the options
Ahid Shaikh Mohammad
Deja Vu Real EstateBrokers LLC
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