Whether it’s due to its endless summer, tax free living, amazing quality of life and economic growth Dubai is an exciting place to live and invest in. From an array of ready apartments and villas to off plan Dubai properties the choice for potential investors is endless. So whilst buying property and especially an off plan property is vey exciting it isn't without risk. So what exactly should one consider before buying an off plan property in Dubai? Lets have a look at just some of the main factors to take into consideration.
We have all heard the saying ‘location, location, location’ and when it comes to buying property it’s a crucial aspect to consider. Factors such as area demographics, accessibility, proximity to sea or city as well as places of interest are all crucial and need to be taken into account. If you are buying for investment purposes you need to look at things like rental demand, population growth and area price trends. The last thing you want to do is buy a property which you intend to lease only to find out the area you have purchased in is an area which has very little rental demand. Alternatively if you are buying a property you eventually wish to live in you need to look for amenities and facilities which are important to you and ensure these are available.
You wouldn't buy a car from a car company know nothing about so the same goes with an off plan property. Choosing the right developer is crucial and will go along way to ensure you get exactly what you pay for. So how does one choose the right developer? It may sound cliche but it starts with something as simple and mundane as good old fashion research. Finding out as much as you possibly can about the different developers your are considering is a great way to sort out the good from the average . Things to look for include, company size, reputation, time in the market and most importantly track record. Look at projects previously built by the developer, where they completed on time? Did the developer deliver on what they promised? Are their previous buyers happy? Most property developers will promise you the world but answers to these type of questions will give you a good indication whether any of those promises are likely to eventuate.
One of the biggest attractions of buying of plan is the fact payments are made over a period of time and the initial cash investment is far less then that required when buying a ready property. Whilst most traditional payment plans are linked to construction, for example, you pay 30% of the property value at the time 30% of the property is completed many developers are getting creative and offering new and different options. One of those new and different options are ‘post handover’ payment plans. As the name would suggest, a post hand over payment plan is one where a portion, usually 40% of the property value is paid over a period of time after property handover. This allows the buyer to use the property, either occupy or lease, before making full repayments to the developer. Payment plans such as this are becoming more and more popular and allow buyers to purchase property they may not have been in a position to purchase before. Like with a more traditional payment plan however, its always crucial to budget correctly and ensure you can meet you payment obligation as per the payment plan applicable.
These are just a few of the main factors to consider when it comes to purchasing an off plan property. The list of considerations is extensive and whilst being diligent isn't always a great deal of fun, it is a crucial process and will ensure you buy the right property, from the right developer and in exactly the right location.