Dubai is a popular destination for locals and expats who like to invest in real estate properties. But there is one big problem that most of them can not choose to rent or buy property in Dubai. Before any investment, consider your financial status, short-term and long-term goals. Then think about the advantages and disadvantages of renting or buying property in Dubai based on your goals. Here, we will explain these advantages and disadvantages to help you decide on a better future investment.
Advantages of Renting Property in Dubai
If you think of renting a property in Dubai, I suggest you read the below paragraph as advantages of renting before any decision. Here, you can read about the three most important advantages of renting a property in Dubai.
● Budget-friendly (short time)
You can rent a property with less budget because the rental fees, DLD fees, registration fees, and other extra charges are lower than buying property.
● Temporary commitment
If you need to invest for a short period, renting a property is better than buying. As a tenant, you will sign only a yearly contract with a landlord and get rid of a purchase contract.
● Easy relocation
Another advantage of renting a property in Dubai is that you can change your place if you face an unexpected program. If you are a working professional, especially an expat, you may need to change your place to another emirate because of a job opportunity. The good point of renting is that you can easily cancel your tenant contract and leave your existing home.
Disadvantages of Renting Property in Dubai
Now that you know about the advantages of renting a property in Dubai it is good to consider its disadvantages, too. Here are the three most important advantages of renting a property in Dubai.
● Restrictions to customize
The first point is that you can not customize the rented property because it is not yours. While there are a few landlords, who allow customization of property, most of them do not like to spend money to add new features based on your interest.
● Increasing rental rates
The rental property is not ideal for long-term living, as the trend of rent prices is increasing highly.
● Costly in the long run
Most investors believe that spending money to pay rent is like investing in a bag with holes. After years of spending your money on renting property, you understand that you tried for years and paid for nothing.
Advantages of Buying Property in Dubai
Now it is time to discuss the advantages of buying property in Dubai. Here, you can read about three most important advantages of it.
● Long-term investment
If you want to buy property in Dubai, be sure that it is one of the most tested investments that bring you great returns.
● Full rights over your home
You will feel more comfortable in your own home because you can customize and renovate it as you wish.
● Wide range of opportunities
Buying a property in Dubai provides you with different opportunities for greater returns. For instance, you can sell it for a higher price after some time or rent it for an income flow.
Disadvantages of Buying Property in Dubai
You can not decide to buy a property in Dubai when you do not know about both advantages and disadvantages.
● Costly initial fees
More than the actual cost of buying a property in Dubai, which is high, you have to pay DLD charges, an agent’s fee, and a lot more.
● Additional regular fees
When you own a property you are responsible for fees like maintenance fees, insurance fees, mortgage fees, and the like.
● Susceptibility to an unstable market
As the real estate market is not stable all the time, it might hurt owners who lease the property or use it as accommodation or holiday homes.
Other points you have to consider before buying or renting a property in Dubai:
Previously, I talked about the advantages and disadvantages of buying and renting a property in Dubai. While it is good to consider them before making any decision, here are other essential points that you have to know.
● Market status
Based on your financial status, search about the current real estate market and see if it fits you or not. Also, it might be good to consider the trend of property costs in Dubai during the last few years.
● Duration of stay
It could be helpful to consider your living duration before any decision. For example, if you are going to stay in Dubai for less than five years, renting is more logical than buying. But for longer settlements, buying your own house is wise.
● Your budget
There are two groups of people who live in Dubai. The first group is ex-pats who work to save up and send cash to their home country or start a small business. Renting is the most ideal option for this group. But if you have the financial capability, nothing is better than buying a property in Dubai.
So, have you decided which type of investment suits your lifestyle and plans? The next step is to find the property that suits you. Whether you are renting or buying property in Dubai, it is difficult to explore all the choices that the emirate has to offer.
With dxboffplan.com, you can easily search your desired property and refine results based on your specific needs. Easily find the best apartments for sale in Dubai or villas for sale in Dubai with just a few clicks from your browser. Start finding your next property investment now!