Should I buy or rent? This is a question that many people ask, especially people coming to Dubai for work or business. There is a no direct answer to this question and the best answer comes after a series of other questions.
How long is the stay?
If you have just arrived in Dubai and are at the crossroads of buying versus renting, you need to determine the length of your stay in this country. If the stay is short then the best option would be renting, if you are planning to stay for a very long time, then buying makes more sense as you will be paying high rents in a busy city like Dubai that can be easily turned to monthly installments if you take a mortgage. However it’s also sensible to judge whether it is possible to pay the monthly installment for you and it doesn’t hurt your overall monthly budget.
If you have decided to rent property in Dubai, then you need to start exploring all areas that suit your daily needs like the distance to your workplace and the amenities in the neighborhood. Also you need to see the connectivity with train if you haven’t purchased a car yet. Once you have shortlisted the areas, you need to decide on the type and the size of the property. You may want to live in a studio if you’re single or rent a large villa if the family requirements are for more space.
If after doing you basic calculations you decide to buy a property then first o fall you should have a clear budget in mind. If you are buying cash, you need to find a property that will get you good capital appreciation if you may want to sell it after a few years. If you are taking a mortgage it’s better to have a pre-approval from a bank before you start the property search. This will save you time as the bank may agree to lend you less than what you expect. Having a pre-approval means you will be only looking t properties that your mortgage allows. Also understand the different types of mortgages and interest rates as they may sound the same, however they are different in the long run and you should only choose the one that suits your financial needs and situation.
Whether you decide to buy or rent property in Dubai, in both cases you will need a real estate broker that will help you find the best property and guide you through the paper work and the final contract.