On the surface, the buying vs.renting question appears to be an irrelevant one. Those who can afford buying a home in Dubai, will obviously go ahead and own one. And the ones living in rented spaces usually find home buying as an option way above their league. Why ask the question in the first place? But what if we tell you that your rent can be replaced with mortgage installments, making you the owner of the property within a few years. Home buying now sounds like a considerable option right? However, this is not a one-size-fits-all approach. Both owning and renting have their own set of pros and cons. There are several factors along with some basic math that determine what’s ideal out of the two for you.
Factors to be Considered Before You Decide to Rent or Own
Your Financial Situation
Without a doubt, the decision to buy or rent a space majorly relies on your financial status. If you are an entrepreneur fortunate enough to manage a steady stream of profits, or even if you are a salaried professional with a stable job and an income sufficient enough, you can think about purchasing a home. However, you would also need savings decent enough to pour into as the property price or at least as the mortgage down payment. Additionally, a residential property when owned, brings along its own set of expenses, both upfront and in the long run. These could include anything like the agent fee, government fees associated with buying as well as repair and maintenance costs. In a nutshell, to own your own space, you must first assess your financial situation, and only then you may proceed to sign the dotted line.
On the other hand, if you do not have a secure job, or you are running a business that is struggling to bring in regular income, you are better off renting a home in Dubai. And even if you do have regular income, you must be debt-free plus have enough savings to manage at least a downpayment.
Your Future Plans
Even if you can afford it, purchasing a property may not always be the best option for you. If you are likely to relocate elsewhere after the next few years, or do not have any intentions of having investments here, owning a home makes no sense. In this case, renting seems to be the better option. Remember, it is always easier to simply move out of a property when compared to the hassle of selling the property.
However, if you plan on residing in Dubai for a long time, and you are keen on buying an apartment or villa you can call home, and you can indeed afford to buy one, then you must go for it. Besides, purchasing a property might grant you a Golden Visa if you satisfy the applicable criteria. This way you can secure long-term residency along with a property.
Owning a home gives you the stability and control that you may have always desired, and that’s not possible with a rented home. After all, it’s your home and you won’t have to stay with the worry of being asked to vacate some day. You can renovate it the way you wish without the need for someone’s approval. That’s not all. You won’t have to worry about the uncertainty of ever-changing rents. Another great advantage of buying a property is that you are building equity. The mortgage installments that you pay, contribute towards securing an investment for you. Moreover, in a booming market like Dubai, your property value will definitely appreciate over time.
Even if you don’t intend to reside in the property, you can rent it out and cover your mortgage installments through it. Once you have paid off the mortgage, you can have a constant passive income as well.
Conclusion
As we can see, the answer to the buy vs. rent question mainly lies in your future plans and finances. Both renting and buying have their own advantages, and this varies on a person-to-person basis. However, there are other factors as well that can influence your decision to rent or buy. The rental trends, locality, property-type, and the developer offering the property can be included as some of the relevant factors. For more informed insights on such factors, you can consider obtaining the opinion of real estate professionals in Dubai.
InZone Properties is a Dubai-based real estate brokerage, and can assist you in finding properties to buy or rent in Dubai. Get in touch with us right away and find what’s the best solution for your housing needs in Dubai.
