Are you planning the investment in the real estate market this year, let’s take a deeper look on options of Ready property and Off-Plan property investment in the market
Ready Property
Ready units are the one which are completely ready for occupancy. In Dubai the average return on buy-to-let ready property is around 6 to 7 percent, which upsurges to 9 percent in some communities. However, yield counts on the property selection, quality, and its location, so, before investing buyer should do the appropriate calculation and should structure the deal in such a manner that in the long-term it brings in high rental yields.
Furthermore, if willing to consider the finance options, then currently, banks are offering finance up to 75 percent of the property value for UAE expats. However, LTV ratios can fluctuate contingent on the buyer’s investment profile and the constraint. The procedure takes about three to four working days to get the pre-approval. Buy-to-let could be a smart scheme for investors who are looking for an instantaneous cash flow, but ready properties are usually excessive than off-plan and come with a little added cost to buyers. But overall it derives with reduced risk as compared to other asset portfolios.
Off-plan
Off plan property are an under construction units, and currently, we witnessing an aggressive movement in this category of investment, as many developers are announcing their units and it outshone due to its affordability, flexible payment structure, combined with the promotional strategies by developers, which persuaded the investors to benefit from the opportunity.
Regarding the finance options, then yes the Banks in Dubai, do mortgage off-plan projects but considering the uneven conditions, the Central Bank mortgage regulations have set the maximum 50 per cent LTV on the property being purchased off plans irrespective of category, project or the value.
Henceforth, determining either of the two will certainly give the recompensing yields. Consulting with the industry expert would be an added advantage as they have acquaintance in dealing with several projects from different developers, hence can advise on projects options which will match the criterion.
Let our certified independent mortgage consultant help you to plan your investment in Dubai. 4C Mortgage Consultants provide best customized mortgage consultancy for a resale property, new purchase property, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on Twitter, Facebook, and LinkedIn and keep yourself updated.