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I've been here for couple of years and I'm thinking to stay here for next 5 years. Instead of wasting the money for renting, I'm thinking of buying 1BR (2BR if possible) an apartment by installment or rent-to-own scheme for somewhere between 300K to 400K. I believe it must be a freehold, right? I'm not buying a plan but completed unit. Is there any in Dubai?

The problem is that in most of the new property ads, they are not even built yet. I can't afford yet to pay for installment plus another rent separately before the unit is finished.

After 5 years if I decided to move to another country, I may resell again the apartment. I'm not expecting big profit. At least I can get back my total investment. Like a saving. That would be good enough for me.

International City is the cheapest one already built. But you missed the boat if you want a 1-bd between 300k and 400k. My studio itself is now worth almost 350k.

Next cheapest is Lagoons. But they are so pathetic they haven't started building yet, and already months behind. Changed developers too. Stinks of a eventual rip-off.

For your rate, you'll get something in Ajman, if you love commuting.

Yeah, I guess I need to top up the budget, say 450K. Outside Dubai is out of my options.

In that range, I saw some ads on Internet about Greece cluster and Toronto/Vancouver tower in Intl City. What do you think? Couple of months delay until completion is Ok as I need some times to cancel the current apt.

Since you bought yours, could you share the bits and pieces of the process, getting residence visa (I heard there's some qualifications), interests rate on installments (from bank?), down payment, extra costs, etc. I'm totally blind.

I spoke to my wife and we're seriously considering it. Budget, say more or less 10-12K/month installments over 4 years (?).

Hmm seems like there have been many problems and delays on International City phase 3 (that includes Toronto/Vancouver towers). Reading the whole thread now...

Yeah, you have to expect delays. Mine was handed over 3 months late. But if you snatch a place before it's built, you get a good price as you saw for Greece.

I am actually going to apply for the visa by the end of the month, but I have the form. It's 5k for 3 years visa + 2k if you don't want to go to Kish + 10k deposit so they can make some dough off interest. Keep in mind that this visa does not allow you to work.

Buying the place itself was simple for me since I paid cash.
Wrote 70% cheque to agent as demanded by them,
went to court on SZR for 10 minutes to get some paper stamped (your agent will explain),
building owner contacts me directly later for 30% which I paid,
got contract by courier to sign, gave back to building owner,
owner signs contract too and hands over to Nakheel,
owner gets keys from Nakheel much later,
owner gives me keys after I get DEWA connection.

Here and there, there will be more Nakheel fees that I paid through the building owner. All this happened over 6 months.

From what I can see, interest rates are around 8%, though I don't know more.

Rental, you'll make 10%+ returns.

Buying a plan is not an option for me. I can't afford double expense for renting current apt and installment of new apt (for couple of months is still ok, but not more). And can't afford risk of delays.

All in all, how much roughly the overhead for all the costs (paperworks, commissions, fees, deposits, etc etc) out of the apt sales price & interests itself? I need to put this into the calculation.

One tricky situation is that I need to keep my job at least until my installments are complete and got the residence/investor visa. Otherwise, it can be a nightmare supposed the company fired me, going bankrupt, or I change the job. Moreover if there's a ban. Means I need to resell the apt really quick within a month and move out. Or to settle the balance if I got the money. That's tough.

I'd buy only to be lived in, not to let or resell for profit taking. Just to "save" my current rent expenses.

Hmm... Can we pass that tricky situation by getting home loan from a bank, bank will pay in full, so we can get the visa immediately? So no worries on the job side.

I see NBD home loan interest rate is 6.49%.

xty wrote:Hmm... Can we pass that tricky situation by getting home loan from a bank, bank will pay in full, so we can get the visa immediately? So no worries on the job side.

I see NBD home loan interest rate is 6.49%.

Yes, that's how mortgage works, I believe. Bank pays to buy the property, but you pay back the bank over 10-15 years. Keep 10% above the purchase price handy for "fees". Also keep in mind that there is a yearly maintenance fee. At IC, for studio is 5k and for 1bd is 7-8K.

10-15 years? I'm even not sure I'll be still in Dubai after 5 years Considering the budget, I think I can afford for 4-5 years term.

Isn't the commission standard like 5%? And you said for visa only it costs about 15K (that is 3.33%). The rest (7.5K) for other costs/fees. In that case, are you sure 10% is enough?

So roughly say if the 1BR apt cost 450K + interest around 6.5% pa (NBD) for total of 26% in 4 years (117K) + 10% (45K) for all overheads (commission, fees, visa, deposit, DEWA, etc etc) + 32K maintenance, at the end of the term (4 years) I would have spent roughly 612K, right?

Now to compare with 4 years rent (say 75K pa = 300K), buying (117K for interests + 45K overheads + 32K maintenance = 194K) is still considered better because I can "save" 106K (300K - 194K), right? Let alone market price appreciation.

Standard comission is only 1% of property value (as I got thru Better Homes). You are thinking of 5% commission for tenants who want to rent a place. Land department fees is 1% or 1.5%. Nakheel will eat Dhs 2850 plus 1% or 2% (can't remember) just to do paperwork. And your building owner (which could be your real estate agency in some cases) will eat some extra money too if they are scam-artists like ARY, but thankfully mine wasn't like that.

Great then *relieve* I thought 5% like in rent

The end result is clear that I can save a lot when buying.
I'll discuss with my wife and research some ads & location before taking the decision.

Thanks a lot GT for all the helpful info.

Good luck with your home purchase.

gtmash wrote:International City is the cheapest one already built. But you missed the boat if you want a 1-bd between 300k and 400k. My studio itself is now worth almost 350k.

Next cheapest is Lagoons. But they are so pathetic they haven't started building yet, and already months behind. Changed developers too. Stinks of a eventual rip-off.

For your rate, you'll get something in Ajman, if you love commuting.

Is it true that IC is next to a *hit factory and that the stink is really bad most of the time?

The Major wrote:

gtmash wrote:International City is the cheapest one already built. But you missed the boat if you want a 1-bd between 300k and 400k. My studio itself is now worth almost 350k.

Next cheapest is Lagoons. But they are so pathetic they haven't started building yet, and already months behind. Changed developers too. Stinks of a eventual rip-off.

For your rate, you'll get something in Ajman, if you love commuting.

Is it true that IC is next to a *hit factory and that the stink is really bad most of the time?

Persia is blocked by China. If you read reports, it's only the China people who keep complaining. It would seem Morocco is in the line of fire too. I never smelt anything at Persia, and my tenant hasn't said anything either.

Hmm, that can be a serious problem for the health.
Has anyone (municipality?) done something to solve this issue?