Can’t quite decide whether to rent or buy a house in the UAE? Do you see renting as throwing away your money or allowing you flexibility? Or do you see purchasing as a huge risk or a worthwhile investment?
There is always merit in looking at both sides of the situation to see what factors will benefit you most.
Renting a property
The first consideration for opting for a rental versus purchasing a residence is the duration of your stay in the UAE. Are you going to stay for a short time, or are you relocating?
Pros:
- Flexibility - Getting a rented place allows you the freedom to leave and go as needed. You have a choice to contract the house for a limited time which doesn’t lock you into a long-term agreement.
- Ease of moving in - Especially if you get a fully furnished unit, you just move in as soon as the deal is done and the payments have been made. This comes in handy, especially when you don’t have much time to scout for units and need to move in as soon as you arrive in the country.
- Less upfront costs - Moving into a fully furnished home entails less upfront costs for you since furniture and appliances already come with the place. No need for you to spend on these, which equates to great savings as these can cost quite a lot.
- Less responsibility - The tenant normally does not shoulder maintenance costs when renting. Repairs and upkeep are the landlord's responsibilities and are off your shoulders, saving you headaches and expenses.
Cons:
- Limited freedom - The design and the furniture may not be to your liking, but you have to go with whatever is there. You will also need to secure your landlord's approval before you can make any changes.
- Increasing rent - Rent increases over time, especially when living there for years. This can significantly affect your budget. It would be best to establish the rent increases, like rate and time, with your landlord at the start of your contract so you can plan for the future.
- No equity - Rent does not give you any assets. In the long run, this is the downside of renting. No matter how much and for how long you rent a place, in the end, the property is still not yours. So your money does not really create property value for you.
Buying a property
If you’re considering relocating to the UAE, purchasing property can eventually give you better returns.
Pros:
- Equity - Buying property gives you equity over time. With real estate prices continually increasing, your purchase may have more value later on.
- Freedom - You have a say in your home's design and construction, especially when buying off-plan. You also have the freedom to make renovations or modifications as you please since you are the house owner.
- Peace of mind - You have your own home. No matter what happens, you have a place that you can call as truly yours. You don’t have to deal with a landlord.
- Possible income - The demand for rentals in the UAE continues to rise as more expats choose to relocate to the country. Owning a property can become a source of income for you when you decide to have it rented. Whether short-term or long-term, turning your home into a rental can easily mean passive income for you.
Cons:
- Higher upfront costs - As part of becoming a property owner, you inevitably shoulder a lot of upfront costs such as down payment, processing fees, and expenses involving furnishings, appliances and the like, especially to turn your home into your desired living space.
- Maintenance costs - Maintenance checks have to be periodically made to ensure your home is in tip-top shape. Consequently, repairs and upkeep fall on your shoulders. You may have to set aside a budget for this to avoid being caught off guard when the need arises.
- Depreciation - Which brings us to the subject of depreciation. Land appreciates over time, but houses depreciate. That is why diligence in house maintenance is a must.
The need to get the support of reputable agencies to find the best property for you
The real estate industry is a lucrative business. One only has to look at the demand to grasp this sector's attractiveness. That is why it is an absolute must to be vigilant about the agency or developer you deal with. Dubai has very strict rules on licensing developers and real estate agents. The safest and best way is to do due diligence by checking the official government listings of certified developers and agents.
In addition, you can also request to see the licenses and affiliations of these companies to check their legitimacy. It is highly advisable to check their track record and examine their past and current projects, their sales and turnover records.
Are you searching for your future home in the UAE? Our sales team can assist you in finding the property that will suit your needs.
