Why Should You Consider Buying a House in Dubai Instead of Living on Rent?

Sun, 2018-05-20 11:30
Why Should You Consider Buying a House in Dubai Instead of Living on Rent?

Long has been a dream to buy a house in Dubai! Yet, so many Dubai houses are still rented.

Did you know that a 24-year-old college-dropout made $4 million from investing in real estate? It all began when he bought a 5-bedroom condo. He lived in it and rented it to his friends while he worked – then went from $10,000 in savings to $4 million. He lived in an apartment for free and made profit! 1

This is just one of the simple ways to hack life with real estate (and is very much possible with Dubai homes). It also explains why real estate is a timeless investment recommended by generations.

We’ve gathered for you a couple of reasons why you should buy a house in Dubai instead of renting one.

Dubai Ranked One of the Top Cities for Real Estate

According to JLL’s recent report, Dubai is one of the top 30 cities for real estate investment in the world, ranking on 27th as compared to the 36th place back in 2014. 2 As Expo 2020 nears, the industry is only expected to continue flourishing further.

It comes as no surprise that houses for sale in Dubai are an optimal opportunity for any investor.

The city boasts world-class infrastructure, and open economic policies with minimal control and is considered among the highest for rental returns worldwide, with 0% income tax on returns and the average rate for returns being 7-10% compared to 2-3% in other markets in the world.

According to the World Economic Forum’s Global Competitiveness Index 2017-2018, UAE is ranked as the world’s second safest place. It also boasts of a strong regulatory authority, RERA, which safeguards buyers in Dubai’s real estate market.

Ease of Mind

It is always important to have a back-up plan. If you buy a house in Dubai, you are exempted from paying rent every month while achieving additional financial security and independence.

You will be able to place your own rules, as it will be your house – not anyone else’s. You will also have access to various amenities; luxury finishing, fitness centers, excellent locations, nearby schools, services, high-end stores, and so much more.

You can check out our houses for sale in Dubai to choose from the various properties we have on offer. We have several options to suit your financial needs and plans, from as low as AED 2,505 per month.

Dubai Homes Mean Passive Income

  • Buy an apartment
  • Rent it out
  • Get returns

This is a simple formula that many of the world’s richest real estate investors follow to make high returns on their investment.

If you decide to rent out your apartment, you can benefit by getting passive income. This is known as rental income and is one of the major benefits of buying a house. This is especially true in Dubai, where you are expected to rent out your house for 8-10% of the buying price (allowing you to receive up to 8-10% returns on your investment).

It’s Cheaper

Not only do you get rental returns on your investment, but your house continues to increase in value by the year too. If in twenty years you decide to sell your house, you will be selling it for higher than the price you initially bought it for, thereby making a profit.

This is much more appealing than spending thousands every year without any countable or tangible returns in the long run.

Inflation

Inflation is the value of money decreasing over time. It means that the purchasing power of one dirham today decreases after a period of time. This one dirham won’t have the power to purchase as many things in the future, as it does today. (Remember when 1 dirham bought 4 packets of chips?)

Although this might not sound appealing, it is a great advantage to property buyers. You can buy a house in Dubai for AED 700,000 today, which would be worth much more in ten years’ time. In addition to that, you can even get back your initial AED 700,000 by renting out your house or apartment. If you rent it for AED 70,000 a year (which is the average annual rent of a one-bedroom apartment), you will be getting AED 700,000 in 10 years. 

Instead of spending AED 70,000 on rent every year, buying a house not only saves you money, but also helps you build income in the long run.

[Related: To rent or buy in Dubai – which is best for you?]

Long-term Investment

You will mark your spot in Dubai, which is a city that thrives on investment and is considered a pioneer in real estate.

Investing in Dubai houses is a way to secure your future. The longer you own a Dubai home, the higher its value becomes. You will begin to realize that good investments are not short-term rewards, but they are investments that achieve high returns over a period of time.

Payment Plans for Dubai Houses

Imagine spending AED 5,000 per month for 5 years on rent, which is a reality for most Dubai tenants. Now imagine spending AED 5,000 per month for 5 years and owning a Dubai house. Not only do you have a place to settle, but you no longer have to pay rent too.

What you spend every month does not evaporate into space; but it turns into an investment that remains, is permanent, and fully yours. This is one of the pleasures of investing in real estate. You see it. You live in it. You own it.

There are numerous payment plans with DAMAC Properties, as we have many houses for sale in Dubai.

For example, you can invest in a lively community with Věra Residences, which is a tower of luxurious apartments in the heart of Business Bay, with river views overlooking the Dubai Canal. It is nearby Downtown Dubai as well as the Sheikh Zayed Road.

Services are just around the corner, steps away from this premium location.

In this opportunity, your monthly payment plans will be as low as AED 4,990. In the special payment plan, 40% is due on completion, with returns of up to 10% per annum.

This is just one of our houses for sale in Dubai. Most, if not all, of our Dubai houses have easy payment plans.

Mortgage Plans

If you do not have immediate liquidity to buy a house in Dubai, you can apply for a mortgage. Mortgages have doubled in Dubai over these past seven years, which only means more and more people have acknowledged the benefits of buying over renting a Dubai house.

DAMAC Properties is proud to be the only luxury developer with an in-house mortgage department in the Middle East.

To apply or qualify for a loan in order to buy a house in Dubai, you need to be familiar with technical matters in mortgage payments, which we are readily prepared to assist you with.

[Related: Applying for a mortgage? You should know this]

Always a Good Investment

There is a reason the saying goes, ‘as safe as home’. This is because buying a house is a way countless people and generations have ensured that their money increases in value overtime, that they secure passive and constant income, and that they guarantee a safety net for themselves and their families in the unprecedented case of any emergency.

You, too, can own a luxury house in Dubai, affordable and suitable to your needs. Don’t be misguided by the numbers – there’s a chance for everyone.

Sources: 1; Business Insider, 2; JLL.

For more information on houses for sale in Dubai and DAMAC's various investment options, please register your details in the form or call +971 4 520 5110