3 Reasons Why Buying Off Plan is Better Than Buying Ready Properties in Dubai
When purchasing property in Dubai, there are essentially two types of properties. ‘Off plan’ properties are new construction units that are purchased from developers. ‘Ready’ properties are ready-to-move-in properties that are purchased on the resale market. There are several reasons why buying off-plan is better than buying ready properties in Dubai, three of which are outlined below.
Getting a good deal on the purchase of an off plan property is one great reason to choose this option. Generally, buying off plan properties is less expensive than buying ready properties. Also, depending on the developer, the purchaser may only need to pay a deposit to secure the property (maybe between 20% and 40% of the purchase price). Upon completion, the purchaser then pays the remaining balance.
For developers who have construction projects in progress, it is advantageous to sell units before they are completed. Having units already sold reduces their financial liability. Because of this, developers often price properties to sell, especially closer to the beginning of the project. As a project gets closer to completion, prices get higher. Also, the more units that are sold in a building or development, the higher the prices go for the other units. In addition to getting a good price, purchasing early gives buyers a wider selection of units.
A Solid Investment
A number of purchasers use off plan properties as investments. Buying properties early and for a good price, they then watch the value of their investment rise as the project nears completion. These buyers may then turn around at a later time and resell their property for a profit. In addition, off plan properties in Dubai are currently more popular than ready properties. Investing early allows purchasers to make a tidy profit by taking advantage of this trend.
Those who invest in off-plan units for rental properties benefit from the steady and favorable growth of Dubai’s real estate values. Rental yields are very favorable – 7 to 8% in Dubai compared to only a 3 to 4% yield in major European cities. Lastly, with no property taxes and no taxes on rental income, capital gains or land in Dubai, the city is ideal for buying investment property.
Purchasing Off Plan Properties Rather Than Ready Properties
There are a number of advantages to buying off-plan properties instead of ready properties in Dubai. Buying an off-plan property is less generally expensive than buying ready properties. Also, many investors purchase these properties and take advantage of the lower prices and Dubai’s tax advantages to maximize their investments.
Thinking about buying property in Dubai? To learn more, contact Elite City by phone +971 4 501 3656 or leave your inquiry here for more information. One of our associates will contact you within 24 hours.