When it comes to buying vs renting a house, there is always a doubt about which makes the most financial sense. Both sides have their cons and pros, leading the decision-making process a bit confusing.
Buying your own place can be an investment and comes with the certainty of a fixed mortgage payment, but it also has lots of unexpected costs and can take a while to build equity. On the other hand, renting is typically more affordable and flexible, but gives residents less control over the property and also it comes with more dependency.
With more than 200 nationalities living in the country, UAE has become home for many. For many, Dubai is just a temporary address, and for the same, it’s always been preferred to get a rented apartment. However, things are changing, and changing very fast. Generally speaking irrespective of where you stay or the kind of accommodation you use, we can all agree that rent is the biggest monthly expense for any expat in the UAE.
The unpleasant fact about renting is that each month your rental payment is an expense and does not contribute to your financial health. Over time, home and/or property appreciates.
Despite the expensive initial down payment, owning a home is cheaper than paying rent. This is because when you rent, not only are you paying your landlord’s mortgage, but you are also paying an additional amount because they will want to make a profit.
Every monthly installment of your mortgage loan adds up to creating more equity. Homeowners are investing in their own home whereas the rental payment is going straight to the landlord’s pocket or paying their mortgage payment.
Buying a house not only gives a sense of stability but even if you are not residing in Dubai, you can always rent or resale your property for higher Return on Investment (ROI).
In any case, buying a property in the UAE is absolutely as rewarding as investments go, and we’re here to assist you to figure out how you should take the plunge and buy your dream home.