Purchasing an off-plan house would be a wise choice, particularly in vibrant real estate markets like Dubai.
Understanding the payment plans is vital before signing.
A well-structured payment plan can make your purchase easier on your wallet, while a poorly understood one can lead to financial surprises.
Key pointers are to stay informed about:
What does an Off-plan payment plan entail?
An Off-plan payment plan involves the division of the total property cost in a series of incremental intervals instead of requiring a bulged upfront payment.
This division benefits the buyers who wish to purchase real estate investments as it falls under manageable chunks and is structured as a payment plan.
General structure of payment plans
1. Construction-Linked Plans
Payments are based on construction achievements.
(e.g., 10% at booking, 10% at foundation, etc.).
This minimises the risk to the investor and makes the payment as progress is made.
2. Post-Handover Payment Plans
A certain portion of the payment will be made after the property is completed.
The ideal choice for individuals who wish to rent out their property and pay for installments using rental money.
3. 80/20 or 70/30 Plans
The buyer is responsible for paying 70-80% of the total cost during the construction phase, with the remaining balance due at the time of transfer.
Off-plan payment plans have the potential to yield large rewards if you make the right choice.
To make an informed choice and stay out of financial difficulty, it is critical to comprehend how these plans operate.
Whether you are a first-time buyer or an experienced investor, it is crucial to understand the conditions of payment before completing a purchase.
