Buying a home has always been a dream to most people, but most think renting a property is more convenient and risk-free. While renting is more flexible, buying a home has the bigger potential long-term payoff, with quality of life benefits. Comparing the costs of both, buying a property might seem to be more complicated, so it's important to look beyond just the numbers when making your next big move. In addition research shows that owning your own house has clear advantages over renting, especially when it comes to building your net worth and providing a stable environment for your family. In this article we will be listing some of these benefits.
It is cheaper buying than renting Now this might seem bit odd, but think of it this way, your property will continue to increase in value, and within few years you can sell the property at a decent profit mark. On the other hand if you were to rent a property instead of buying one now and the value of the property rises, you will have to pay more in rent.
Long term investment Dubai is a city that thrives on investment and is considered a pioneer in real estate. Having your own property in Dubai is definitely a way to secure your families future. The longer you own a property in Dubai the higher its value becomes, this could be a very secure investment that will receive high returns over a period of time.
Mortgage plans Dubai banks started providing mortgage plan recently, this means if you do not have immediate amount to buy the property, you could apply for mortgage. Over the past few years mortgages have doubled in Dubai, this clearly shows that more and more people understand the benefits of buying a house over renting.
Paying a Fixed Mortgage Stabilizes Your Budget If you considering to rent a property in Dubai, then keep in mind that rent hikes are the norm and often out of your control. On the other hand if you own a property you will be paying only fixed mortgage agreed upon earlier. And if you want to rent your property, you could actually benefit from these rental hikes.
Benefit from inflation Inflation is the rate at which the general level of prices for goods and services is rising and consequently, the purchasing power of currency is falling. This means that purchasing power of one Dirham today will not be the same in few years, it will be much lesser. Remember how everything was way cheaper back in days? As the inflation phenomenon might seem natural, it is of great advantage to property investors. This is because if an investor buys a property today and sells it at the same price years later he/she will still be at a profit since the price value of the money now is not the same, keeping in mind that selling the property at the same price after few years is almost never the case, usually much higher.
Equal amounts of payments Let’s say you are spending AED 4000/month for 5 years on rent for your one bedroom apartment, which is the average price in Dubai. Now you could spend roughly the same 4000/month in some cases for same number of years as part your payment plan for the property, so at the end you will own the property and the amount you spend every month will not go for waist such as the rentals case.
Payment plans Most will argue that initial payments are high when buying a property, while this might be true for some cases, most developers in Dubai offer attractive payment plans in the recent years. If you have a look at our ready or off plan property listing sections you could see some of the attractive payment plans our developers provide, with some initial payments up-to 5% only.
Peace of mind Having your own property means that the property is yours, you could personalize your property in many ways, generally you could redecorate, remodel, or make improvements as per your wish. More owning your property could be looked at as savings account knowing that the property will be worth more in the near future.
To summarize some the points we mentioned, we have put together a table to illustrate benefits of buying over renting in a simplified manner.
Buying a property
Renting a property
If the value of the property rises, you are more likely to increase your profit if you sell the property.
If the value of the property rises, you will have to pay more rent.
Your property is likely to be a valued asset, especially in the long term and it could even be used as an investment property in the future.
You are basically paying off someone else’s home loan.
The property is yours, generally you could redecorate, remodel, or make improvements.
You have no options to personalize the property.
Buyer is eligible to mortgage plans, with payments they can provide.
You will pay the rental price which usually increases over time.