It was only a few years ago that Freehold Dubai property was unheard of,
so it's not all that surprising that until very recently the mortgages available
here were fairly limited. It is far too easy to forget that only a decade or so
ago, what is now row after row of high rise buildings and luxury villas used to
be empty desert, with just a few scattered buildings. Well you may have noticed
things have come along way in a short time since then. Dubai has transformed
itself into one of the hottest property markets and tourists destinations in the
world. Yet despite this, when trying to purchasing a property, buyers were
finding themselves with a very limited choice of mortgages, and those that were
available were not offering vary favorable rates. Buyers only had a choice of
Amlak for Emaar properties and with Nakheel's property their financer Tamweel.
Therefore with no competition and no solid legal frame work in place the market
was destined to have to improve. And I am glad to say that has been the case! The
market has now been opened up by the government, resulting in a much improved
situation for property buyers. You now have world renowned lenders like
Barclays, HSBC along with the likes of RakBank and National Bank of Dubai
competing with Amlak and Tamweel, who have been forced to reduce their rates
with the extra competition. So, you may be thinking that this is all well and
good, but how does it actually save you money? Well, it's not exactly a secrete
that Dubai's rents are rather on the high side. And when I say I mean up to and
over 50% of people's earnings. And what do they get at the end of all this,
after paying out large sums of money every month. Nothing! And you don't need to
be an expert to figure out that is not exactly a great investment. It has got to
the point where rents are nearing a similar level as mortgage repayments,
throwing up the odd situation where you can purchase your own property for a
similar monthly outgoing as your rent would be.
When this is your choice, anyone
looking to stay in Dubai for more than a few months would do well to purchase a
property and actually save themselves money whilst doing so! Buying a freehold
property has made so much sense!
Submitted by Sajid Mirza (February 06, 2008)
Dubai Real Estate | Palm Dubai
