Buy or Rent Luxury Real Estate in Dubai ?3 Nov 2017
Buy or Rent? When deciding about real estate, the first consideration is whether to buy or to rent your home. The relative advantages of either option need to be weighed up before a measured decision can be made. Zawaya Property in Dubai can help clients make such decisions, and can offer an extensive range of properties both to buy or to rent once the decision has been made. Considerations Thinking about Dubai, with property prices still relatively low when compared with other locations, it might seem that the buy option is the best one. But at the same time, considering the long-term commitment needed for buying property, it might be that renting is a better option to start with.
Taking a look at renting first, the key advantage is that renting is much more flexible. This is an important consideration for expatriates who may not be able to commit to long-term decisions. Renting allows greater flexibility to relocate quickly should the need arise. Also, the initial costs of renting are significantly lower than with buying.
There are downsides to renting, too. It might be hard to accept you're living in someone else's home and that you cannot do as you wish with the property. Also, the fact that the rent you pay is effectively dead money, which will never be recovered, is an important consideration as well. In Dubai, the rental rates for low-income families are very high and it might be difficult to find a suitable property at the right rental price.
Buying Advantages Moving on to buying a property.
The fact that you own your own property has a psychological benefit, a feeling of permanence. It allows you to do as you wish with the property in terms of renovation and decoration. Purchasing property is generally considered a good investment, with the flexibility to earn an income from it if necessary. In addition, the potential for capital appreciation is clear with buying property versus renting.
The negatives of property ownership are also something to consider. The on-going costs can be high, for maintenance, repairs and insurance, for example. In addition, the initial costs are much higher than with renting, for legal fees and deposits. Also, as we witnessed with the global financial crisis in 2008-9, the potential risk of capital depreciation is worth bearing in mind. With the above in mind, it's important to make the right decision when choosing the buy or rent option. Zawaya Property can offer advice and guidance on that decision - if you would like to contact them.