In a property market like Dubai, the decision regarding buying or renting can be a very confusing one for most expats. Many are getting lured to buy with the attractive properties launches every other day. If you haven’t bought a house just yet, there’s good reason to rent a home and wait for the right time to buy. Here's a few reasons why you should rent and not buy a property in Dubai, in the current market scenario.
- Uncertain market conditions – Markets have slowed down as investment flow from Russia and Saudi has slackened. Many expats have burnt their fingers by buying property at the wrong time in Dubai. You may end up buying a house at its peak price which can adversely effect your rental yield and long-term appreciation.
- It’s expensive – From the average mortgage buyer’s perspective, it is a big financial commitment. Down payment for expats must be a minimum 25% of the property value. Additionally, you will also have to bear the Land Department transfer fee, bank’s home loan processing fee and broker’s commission. Your repayments will also be affected by increasing interest rates.
- Maintenance Cost– Apart from the EMI, owners also need to pay community maintenance fees or building service fees. This usually covers the maintenance of the common areas and facilities. You also need to hire a maintenance agency for your property to take care of regular wear & tear and maintenance issues.
- Uncertain stay in Dubai – Renting is the wiser choice if you aren’t certain of how long your stay in Dubai might be for and if your job might lead you to move to another country at any time. If you’re planning to live in Dubai for less than 5 years, it’s a good idea to rent.
- Live where you can’t buy – You might want to live in a popular area of Dubai, where you can afford to rent but not to buy. Palm Jumeirah, Dubai Marina and Downtown are excellent examples of communities that are always in demand for rent because of the prime location. Then there are rent only areas such as Jumeriah, Bur Dubai or Diera where expats don’t have the option of buying property but can enjoy a preferred lifestyle by renting an apartment or villa.
All in all, the current market conditions present a strong case for renting rather than buying. Browse through the thousands of properties to find apartments for rent as well as villas for rent in Dubai.