Ever wanted to have a home in one of the liveliest and developing cities in the world? Dubai apartment has been on the lips of many professionals, families, and investors in the world due to tax-free income, outstanding infrastructure, and luxurious lifestyle. This city is a cosmopolitan city that is always expanding; therefore, it has everything one would need both in the short term and in the long run. However, regardless of whether you are a first time resident in the UAE or a long term one, there is one question that will always arise: rent or buy?
If you have recently begun your search for the apartment for sale in Dubai, you are among thousands of people. As the rent continues to rise while the prices for the apartments remain relatively low, people are beginning to think that it may be financially wiser to buy an apartment rather than rent it. In this blog post, we will compare the advantages and disadvantages of buying and renting a property in Dubai and explain why it is actually wise to buy an apartment in Dubai.
Renting in Dubai: Flexibility with a Price Tag
Let’s start with renting. It is quite accurate that renting is advantageous in this case and this is because it has flexibility in particular for the expatriate who is not very sure of the period of his or her stay in Dubai. It enables you to try out various areas and the kind of life you want to lead without putting down your money to a particular place. To individuals who are always on the move because of job transfers or other reasons, renting appears to be the most secure.
However, the downside? The cost of renting in Dubai is also high and all goes directly to the landlord, no appreciation, no dividends and no property to show at the end of the lease term. You are in effect paying for the convenience of having the product for a short time.
Purchasing in Dubai: Build up Equity and Stability
Now, here is the change of setting. Purchasing an apartment in Dubai is not merely about having a house to call home, but it is also about wealth creation. Whether one is intending to live in the property for the long-term, or to rent out the property and use the income to make a profit, property is a very strong investment.
Why consider buying?
- No Property Tax: Another advantage of buying a property in Dubai is that it does not have annual property taxes which in turn increases the return on investment.
- Growing Demand: As the aftereffect of Expo 2020 and the continuous improvement of the economy, Dubai’s real estate market remains robust.
- Rental Income Potential: Despite the fact that many people do not intend to live in the apartment, both short-term and long-term leases are very popular, especially in such districts as Dubai Marina, Downtown or Business Bay.
- Long-Term Value: The growth and development of the property in the right area guarantee the owner reaps good returns in the long run.
Renting in Dubai: Flexibility with a Price Tag
Not sure whether it is better to rent or to buy? Here is a brief look at the two options for your perusal:
Renting
- High Flexibility: Ideal for short-term stays or expats testing different neighborhoods.
- Lower Initial Costs: In most cases, it is security deposit and advance rent.
- No Ownership Benefits: This is a disadvantage because monthly rent payments do not contribute toward the ownership of the property.
- Limited Customization: Changes to the space require landlord approval.
- No Financial Returns: It is used in providing temporary shelter that does not have any long-term benefits.
Buying
- Moderate flexibility: This is ideal for those who are likely to spend more time in the house or those who are conducting a business in the area and own the house as an investment.
- Higher Initial Costs: This is the amount of money paid at the beginning of the course, the registration fee, and other charges.
- Full Ownership: You get equity and the chance for long term returns on your investment to be made.
- Complete Control: To some extent, you can renovate, decorate and personalize to your heart’s content.
- Financial Gains: Generate income from rent and gain from property value increase.
Conclusion:
In such a progressive city as Dubai, real estate is not only a home but also a wise investment for the future and financial security. While renting is convenient, especially for young people who have arrived to the city, buying offers an opportunity to own a property, rent it out and gain profit from property appreciation. It finally means that if for one or the other reason you have been trying to weigh the odds between renting and owning a house, you may want to start looking at the positive of having a house of your own.
When it comes to the buying process, it is always advisable to seek advice from a competent property investment consultant who is conversant with the market in Dubai. Getting a professional real estate buyer’s agent also assists in identifying the right property, how to bargain for it and even the legal and financial procedures. If you are a first time buyer or an investor, you are in for one of the best decisions you can make by purchasing a property in Dubai at the right time.