1. Decide what ‘best’ means to you
When it comes to lending, there’s been a definite sea change in Dubai. Banks have recovered from the debt crisis of 10 years ago, learning important lessons along the way. Strict governance on loans is now in place, minimising risk for lenders and borrowers alike. This new confidence has seen a drop in interest rates, making now the time to borrow money for a property investment like this beautiful off plan villa in The Nest, Al Barari.
However, the best interest rates in Dubai aren’t always the lowest. So before you’re tempted to borrow more money in exchange for lower interest rates, calculate how much your repayments will cost you in the long term. Compare this scenario to the one where you borrow only what you need at a slightly higher rate before you commit. Remember there’s room to negotiate terms with your bank, whatever you decide.
Did you know haus & haus have their own Mortgage Service? Our highly qualified team gives transparent, unbiased advice, dealing with numerous different lenders to link your investor profile with the best products around.
2. Understand the market – and work it in your favour
With the current market tipped in favour of investment buyers, you’re in a strong position to bargain over the competing rates set by mortgage lenders. With a ready supply of off plan properties in Dubai, you’ll also find that developers and brokers offer a range of competitive payment plans. With Expo 2020 fast approaching, events like the Dubai Property Festival are the ideal haggling opportunity. Dedicated to promoting Dubai real estate to overseas and Emirates based investors, the Property Festival will feature a host of initiatives and special offers from Dubai real estate brokers, developers and mortgage providers. Browse all the latest developments in prime locations including Dubai Marina’s Sunrise Bay while you’re there.
3. Don’t do it…unless you can really afford it
Many expats climbing the property ladder in Dubai aspire to own a clutch of #luxury investment properties. But if you’re not 100% sure you can cover your mortgage repayments, do some more groundwork. Hidden costs like transaction fees, for example, add an extra layer of expense that should be accounted for. And what about the extent of the insurance offered to you? How much protection does it really give you – and your family – in case of redundancy or serious illness? “When in Dubai, the secret to lasting property investment success is all about getting your personal finances in shape first,” says Managing Director Simon Baker. Then, all this can be yours!