4 types of payment plans for property purchases in Dubai

Over the years, Dubai has grown to become one of the most sought-after investment hubs in the world. With skyscrapers, villas and communities offering high returns on investments and distinct lifestyle experiences, many have gained interest in this diverse real estate scene. However, not every investor has the means to pay the full cost at once. Thus, developers have introduced different payment plans to aid those wishing to become homeowners. Developers around Dubai provide different payment plans, so we have compiled a list of the 4 different types of payment plans in Dubai.

Post Handover 

A common way to pay for properties is through a post-handover payment plan. As the name suggests, the payments start in instalments after the property has been handed over, during a period of 3 to 10 years. However, before receiving the property, the investor needs to have paid a certain predetermined percentage of the property value. This payment plan proves beneficial for both investors and end users alike. It allows investors to rent out the property and use the rental yield to make payments, and end users can live in their homes without paying the full amount.  

10/90

The 10/90 plan requires investors to pay 10% of the property value before being able to own it. Post-handover, they would be required to pay 90% of the property value through different instalments agreed upon by both parties. Favoured by many, this payment plan allows investors to add the property to their investment portfolio while still making their payments.

During construction and on handover 

Throughout the country, there are many different versions of this payment plan depending on the developer and the project; you can find 50/50, 60/40, 70/30 and more. This payment plan is split into two different stages; during construction and on handover. Developers often offer this payment plan during construction stages, allowing clients to make payments over a period of time, and before receiving the keys to their property. Clients would also have the option of getting a mortgage to pay the remaining amount that is due. That way, they would pay in instalments, albeit to the bank rather than the developer, while owning their property. 

Rent to own

An exciting payment plan targeted towards end users is now available in the UAE. Popular in different countries worldwide, rent-to-own payment plans are a convenient and efficient way to become a homeowner. Both parties sign a contract dictating the time and amount, and then rent is paid directly towards their down payment. Typically, the rent will be more than the average market due to the down payment being added on top. After the down payment, the client will pay the rest of the amount through a private loan or mortgage. 

Real estate investment is an appealing option for many people worldwide but can sometimes get overwhelming and confusing. Betterhomes provides support for clients through all stages of their investment, for a smooth transition into being a homeowner. Our dedicated mortgage advisors provide a series of services for all potential clients. We provide connections to different banks with competitive offers and review all documents and paperwork for your ease of mind. 

Get in touch with our mortgage advisor today and learn more about us here.