How is the Payment Structure for Off-plan Properties in Dubai?
Dubai is a popular destination for property investments, and off-plan properties are a popular choice for frequent investors.
If you are a new investor reading this blog, you might be wondering what off-plan properties are. Keep reading to know everything about these lucrative Dubai property investment options and how their payment plans work in Dubai.
Off-plan properties are real-estate projects that might still be under production, and they provide investors with the possibility to buy a property at a reduced price.
Keen investors like to take this opportunity to ensure a better ROI. These kinds of investments also provide flexible payment options for ease of investment.
Now, How Does the Payment Structure of Off-plan Properties in Dubai Work?
The payment structure for off-plan properties in Dubai’s investment panorama can vary from project to project. But there are certain ground rules that remain staples.
The structure typically consists of a down payment and a series of installments, which may or may not be equal in amount. The down payment amount, which is to be given at the time of registering the investment, usually remains at 20% of the actual purchase price of the property. The remaining installments can come over a period of time, which can vary from 2-4 years.
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So the question arises, what is the actual amount and tenure for the payments in installments?
This part depends on the developer, as they may lay down their own stipulation period depending on the duration of the construction they are anticipating. Also, as the project is nearing completion, the developer may release some more information about the remaining part of the payment plan.
Now, let us take a look at some of the benefits of payment plans.
Off-plan property investments come with a hoard of benefits, which is why more and more investors are getting inclined towards under-construction projects for Dubai property investments.
- As compared to completed projects, off-plan projects are offered at a low investment amount. As both the buyer or investor and developer are at a viable risk of project completion. Developers need more and more investors, and buyers see it as a lucrative option for economic investment.
- With off-plan properties in Dubai, investors can lock in the price of the property at the time of investment. This proves beneficial when property prices rise in the future, which is a more likely situation.
- Off-plan properties give investors the opportunity to choose their own finishes and specifications, which can add value to the property.
Factors to Consider Before Planning to Invest in Off-Plan Properties
- Conduct complete research about under-development projects and the developers.
- Make background checks on the market reputation of the developer.
- Carefully review the project documentation that lays out all the terms and conditions of the investment. Do not miss out on any details.
- Approach an investment brokerage company that can help you invest in a good off-plan property without any risks. Such a company will have financial advisors who can help you understand the property market in Dubai, the investment processes, and the ROI you can generate.
If you have any questions about off-plan properties in Dubai, please feel free to contact Golden Bricks, Dubai, the reputed and reliable real estate company in Dubai, for property investments.