I plan to buy property in Dubai to avoid paying rent, which has increased drastically in the last few months and looks as though it will continue. I hope to take a home loan of 80 per cent. Do you think this is a wise decision or not? Also what parameters should I consider before making any decision? VK, Dubai
The first thing I would advise is to sort out how much you have to spend and to research what this money will actually buy you in comparison to what you are looking for. I think it would be better that you speak to a mortgage broker, as going directly to a bank will limit your choice of finance and products. You say you will want to go for 80 per cent finance but the Central Bank has now capped loans for expats at 75 per cent and Emiratis at 80 per cent. If you are an expat then the maximum mortgage loan you will now achieve is 75 per cent loan to value. If you wish to buy because the rental market is increasing at a rapid rate then I believe you are making a good choice as this way you will not have to face yearly negotiations. This all sounds like a lot to consider, but buying to either live in or for an investment, something that can be very rewarding, also has to be well thought out before taking the plunge.
Mario Volpi is the managing director of Prestige Real Estate in Dubai (prestigedubai.com). He has 30 years of property industry experience in the emirate and London. Send any questions to mario@prestigedubai.com
