mortgage broker Archives

Are Post-Handover Payment Plans: Risky for Buyers?

In the age of rising property prices, buyers are increasingly turning to post-handover payment plans, which is labeled as a good shortcut. Developers offer attractive terms, making it an excellent avenue for those who can’t afford to pay up-front for the property they want. However, post-handover payment plans come with a certain degree of risk that must be considered before entering such an agreement. At Capital Zone Mortgage Broker, we understand that post-handover payment plans are a popular option for those looking to purchase a home, but as a buyer, one must be aware of the inherent associated risks. Our property advisors can provide the necessary information to ensure your post-handover payment plan is a safe and secure investment. What are post-handover payment plans? Post-handover payment plans mean that buyers have to plan ahead and be thoughtful about their spending. It is also important to note that they are unsuitable for every buyer due to their risks weighing more than traditional payment methods. Therefore, buyers should always be diligent before entering such an agreement and ensure they understand the terms and conditions involved. Post-payment plans are a valuable financial tool that can help people purchase a property, mobile phone, or even groceries when the money simply isn’t available in lump sum. In a post-payment plan, the individual makes a series of payments over time until the property’s worth is fully paid for. This payment scheme can be shared between two parties, such as in the case of an employer and employee or between banks and buyers. What makes Post-Handover Payment Plans a Risky Affair? Post-handover payment plans can be problematic for buyers. The main risk is that buyers don’t know if the project will be completed on time or if the quality of the end product matches the promise made by the developer prior to signing the contract. In addition, it can be difficult to cover any losses that may occur due to delays in completion or defects in construction. Buyers that avail of such plans typically make payments upon receipt of keys and possession of the house. Such payment structures must be analysed sternly before arriving at a decision. Financial advisors often recommend traditional financing options such as full pre-payment at closing, or staggered payments by milestones over a shorter period of time. This ensures that your investment stays secure. That being said, post-handover payment plans aren’t all bad. Here’s a list of its merits and demerits to help you out. Reasons to Choose Post-Handover Payment Plans Reasons to Run the Other Way Conclusion In a nutshell, post-handover payment plans can be a great option for buyers who are looking for more flexible financing arrangements. However, it is important to carefully consider the risks before entering into such an agreement and ensure that you understand all the terms and conditions involved. Related Articles:1. Buyout Loans in UAE and how they work2. Reasons your Mortgage Application is Rejected Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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5 things to consider before becoming a real estate investor

Thinking to invest in real estate? As one of the most lucrative and secure investments, many people have turned it into their full-time job. However; there are several factors that go into purchasing real estate and things that need to be thought over before making such a big decision. Budget This goes without saying but you need to have savings set aside for investments. Mortgages can be costly depending on the bank you deal with, and installments need to be made on time to avoid further penalties. Real estate prices vary depending on the location, size, developer, view and many more variables, so knowing your budget and sticking to it will make your investments go smoother. Locations Different locations offer different returns depending on their accessibility and surrounding hotspots. There are locations good for capital appreciation, while others offer higher rental yields. It’s important to note the differences in locations and the benefits they bring to your investment. Developers In Dubai, there are many developers that sometimes it gets a little confusing. Different developers will offer you different finishes, service charges and prices. It’s important to due your due diligence when researching the developer; finding out their reputation, and whether projects get handed over on time or not. Goals What are your goals with this investment? Is it for resale? Or is it for rent? Knowing your goals will help you determine what is the best location and project to invest in. This is the key to a successful investment. Managing your property It’s important to keep in mind that having an investment property means that it has to be managed. Paperwork, payments, looking for tenants, renovation, and maintenance, and some of the things you’ll have to be doing. However, there are property management options available that can help ease off the burden and give you peace of mind. Related articles:1. Best Waterfront Living Communities In Dubai2. What you need to know about mandatory life insurance for your UAE home loan Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Refinance Your Mortgage Now for Better Rates and Savings!

The best time to refinance your mortgage in Dubai will depend on your personal financial situation and the current Dubai mortgage interest rates. It’s a good idea to refinance when interest rates are low, as this can help you save money on your monthly mortgage repayments. You may wish to think about remortgaging when you want to: Keep a fixed-rate mortgage If you have a fixed-rate mortgage that’s nearing the end of its fixed term, you may wish to remortgage. When your fixed rate period finishes, your remaining balance will be subject to a follow-on rate. Remortgaging may offer you a better deal than this follow-on rate so it is a good idea to research your options. Change the mortgage term Other than repaying your mortgage early, refinancing is the only way to change the loan term. You can choose to refinance with a shorter mortgage term to pay off the loan amount and build equity faster, or you can refinance for a longer mortgage term to decrease your monthly payments. You should also consider the fees associated with the process of refinancing. Fees to refinance your mortgage can add up and they may outweigh any potential. Your current lender may apply an early exit penalty which will be absorbed by your new bank into your loan amount. This could be up to 10,000 dirhams. It’s a good idea to speak with a mortgage broker to determine if refinancing or a buyout as it is sometimes known, is the right choice for you. How long does it take to refinance your mortage? The refinancing or buyout process for a Dubai mortgage takes an average of 4-6 weeks. How do I refinance my mortgage? To refinance your mortgage in Dubai, you can follow these easy steps. Refinancing your Dubai mortgage can be complicated but we’ve set out to remove the headache and make it as simple as possible. The Capital Zone Mortgage team is here for you at every stage of the process. Related Articles: Best Way to Get Loan Against Property in UAE Understanding DBR and its Beneficial Impact on Mortgage

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Best Off-Plan Projects In Dubai 2023

Four high-end projects by UAE developers were introduced, each of which promised to steal the show this year. The Ritz-Carlton Residences on the grounds of the historic Dubai Creekside community, the ultra-luxurious Keturah Reserve in Meydan, the Damac Harbour Lights tower in the waterfront Maritime City, and Marina Living in Dubai Marina, one of the city’s most well-known neighborhoods, are four new residential complexes in Dubai with a unique selection of services to impress even sophisticated investors and a great price/quality ratio. Not only are the new residential developments in such prime locations some of the nicest structures in Dubai, but they also present excellent financial prospects. The demand for luxury houses in this emirate is at an all-time high right now. THE RITZ-CARLTON RESIDENCES This upscale complex is offered by MAG of Life and the Marriott International, a huge hotel brand. Located in Dubai Creekside, a perfect district for living on the bank of Dubai Creek and near the Ras Al Khor Wildlife Sanctuary, it includes serviced one- to three-bedroom apartments, penthouses, and a limited collection of opulent mansions in the following three styles: Numerous exclusive amenities will be available to residents of this premium complex: Residents will also be able to use five-star hotel services. The staff of this high-end complex will take care of all tiresome household chores, e.g., book airplane tickets or a private jet, reserve a table at the restaurant, sign you up for spa treatments or a game of golf, and arrange move-in. Residents can get a personal coach, a babysitter, a secretary, a chef, as well as cleaning, repair, pet care, shopping, and event organization services by the A La Carte program. Residences with a floor area from 124 to 4,358 m2 are available: Buyers of properties in the Ritz-Carlton Residences are entitled to a 60/40 instalment plan. The down payment is 10%, another 50% is paid during construction, and the remaining 40%, upon handover. The buildings are due for completion in Q1 2026. KETURAH RESERVE This unique ultra-luxury eco-project will be the first Near East complex built in compliance with the Bio Living concept that brings residential and natural space together in an integral whole thanks to a unique design, virtuoso light management, textures, and advanced water and air treatment technologies. This residential project with opulent villas and apartments will be built in Meydan, a neighbourhood within the larger district of Mohammed Bin Rashid City. This is a high-end property in Dubai that offers more than just a luxurious place for living. Keturah Reserve is about caring for your health and the environment, merging sports, leisure, entertainment, and even business spaces into unique natural landscapes. The amenities available to residents include the following: The residences are decorated with natural materials and textures, such as stone, wood, bronze, and linen. The modern VRF air conditioning system ensures energy saving and smart cooling of the living quarters. The homes are also equipped with an air filtration system that removes pollen, smoke, and foreign smells, including kitchen odours. The lighting is designed to maintain residents’ circadian cycles. The panoramic windows allow plenty of daylight into the homes at daytime, while the buildings’ smart architecture prevents overheating. Keturah Reserve includes residences with a floor area of 106 to 826 m2: These are the starting prices from the developer, and they will increase as the project approaches completion. A 60/40 instalment plan is available to the buyers who can make a 15% down payment, pay another 35% during the construction, and the remaining 40%, upon handover. The construction completion is scheduled for Q2 2025. DAMAC HARBOUR LIGHTS This high-rise 52-storey tower in Dubai with panoramic-view apartments from the famous developer Damac Properties was designed by the jewellery brand de Grisogono. The waterfront complex will be located in the high-potential Dubai Maritime City in the heart of the emirate’s maritime industry, near a yacht marina, luxurious skyscrapers with offices, and prestigious tourist neighbourhoods. The project promises to become one of the most popular new buildings in Dubai for foreigners to relocate to. Damac Harbour Lights offers one- to three-bedroom apartments with premium finishing and stunning views from the windows as all the residences face the water. Another feature is the unique floating pool on the waters of the Persian Gulf. A one-bedroom apartment in this new residential project costs from AED 1.32 million to AED 1.64 million (from USD 359,500 to USD 446,500), a two-bedroom home is worth from AED 2.2 million to AED 2.5 million (from USD 599,000 to USD 680,500), and a three-bedroom residence, from AED 2.34 million to AED 3.28 (from USD 637,000 to USD 893,000). The floor areas range from 74 to 158 m2. An 80/20 instalment plan is available. The construction is due for completion in Q2 2027. MARINA LIVING This promising new building in Dubai is a 19-storey tower with two podiums developed by Continental Investment. The complex will be located in the famous resort community of Dubai Marina with extensive facilities for seaside leisure and water sports. Residents of Marina Living will have access to various amenities: Residents of this prestigious skyscraper in Dubai will have access to the extensive facilities of Dubai Marina with its Marina Walk, beaches, hotels, shops, bars, cafés, restaurants, and entertainment venues. One- and two-bedroom residences with a floor area of 67 to 112 m2 and spacious 9-19 m2 balconies are available in Marina Living. They are worth from AED 1.37 million to AED 2.07 (from USD 373,000 to USD 563,500). Buyers can use a 60/40 instalment plan. The construction is scheduled for completion in Q2 2025. Related articles:1. Moving to Dubai: A guide for expats2. What Impact Does My Credit Score Have on My Mortgage in the UAE Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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How much does buying a home really cost in Dubai?

Understanding every fee that will be charged to you is the best way to prepare for the high cost of purchasing a property. Whether you’re buying your first house or the tenth, sticking to your budget and getting the math right will make the process go more smoothly. To understand the fees, we break them down into 5 categories: 1. Mortgage 2. Government 3. Service 4. Maintenance 5. Insurance The list might seem long but not all of these costs are upfront. You will have to include upfront costs in your home buying budget while ongoing costs are part of your living expenses. Upfront vs. Ongoing costs Upfront costs Ongoing costs How much are the upfront costs? 1. Mortgage Down Payment This is the initial up-front partial payment. The amount saved for a down payment is typically one of the factors which affect how much the bank is agreeing to lend for a mortgage. This is normally a minimum of 20% of the loan amount. Bank Mortgage Processing Fee For buyers completing their purchase with a mortgage, this fee is payable to the bank. The processing fee is usually 0.5% of the loan amount + 5% VAT, but it varies depending on the bank. Property Valuation Fee Another fee payable to the bank for a mortgage buyer is the property valuation fee. The rate varies for this fee too, and it is dependent on each bank. The rate ranges from AED 2,500-3,500 + 5% VAT. 2. Government Costs paid to the government are to the Dubai Land Department (DLD), established to manage the sale and purchase of land. They approve, organize and document the real estate in Dubai. DLD Transfer Fee All property purchases must be registered with the Dubai Land Department (DLD). The amount is paid by the buyer and usually at 4% of the Purchase Price + AED 580. DLD Property Registration Fee A registration fee, payable by the buyer to DLD at the rate of AED 4,000 + 5% VAT. DLD Mortgage Registration Fee If the buyer is buying the property through a mortgage, a mortgage registration fee to the DLD is also applicable at 0.25% of the loan amount + AED 290. Oqood Certificate (if the property is off-plan) It ensures that the property is registered with the name of the buyer. Issuance fee for Oqood Certificate is AED 5,250. 3. Service Security Deposit When buying a property on secondary market transactions, the buyer is required to pay a deposit to secure the purchase. The amount is typically 10% of the purchase price payable to the seller via cheque. This amount is collected by the authorized agent (a RERA registered broker) who holds the deposit until the property is successfully transferred. Agency Fee Payable on completion of property purchase to your agent at the rate of 2% of the property price plus 5% VAT. Conveyance Fee Appointing a conveyancer ensures all the legal terms and contracts are accurately stated as per the UAE law and protects the interests of all parties involved. The amount is payable directly to the conveyancer with the range from AED 6,000-10,000. How much are the ongoing costs? 1. Mortgage This is the amount you pay every month towards your mortgage. 2. Maintenance Maintenance Fee This fee is for the upkeep and maintenance of the residential communities or buildings. The charges are usually calculated based on the square foot. DEWA / Gas / AC / Internet DEWA, which stands for Dubai Electricity and Water Authority, is the company that manages water and electricity supply in Dubai. Gas, AC and Internet can be chosen from numerous providers. 3. Insurance Life Insurance This is the mandatory insurance for mortgage buyers. Depending on the bank where the mortgage was taken, the rate can range from 0.4%-0.8% per annum on the remaining loan amount. Property Insurance (recommended) Property insurance is not compulsory in Dubai, however, it is recommended. The price range varies and it is approximately AED 1,000 per annum. Related articles:1. The 11 Best Family-Friendly Communities in Dubai2. Things to Consider When Purchasing Mortgage Protection Insurance in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Best Waterfront Living Communities In Dubai

Waterfront homes provide therapy to both the mind and body and are the epitome of luxury living. And Dubai is packed with some top-notch waterfront communities built to satisfy your desires. From waking up to the beautiful view of the beach to watching the sunset over the creek, Here is a list of the best waterfront properties in Dubai: Palm Jumeirah The famous man-made island is home to Dubai’s most lavish beachfront homes. Live in one of the most daring developments in the world, home to luxurious resorts and 2,600 apartments on the shoreline alone. Living in Palm Jumeirah offers prime residential options along with excellent facilities and of course, the most unparalleled views. The Palm itself is known for Dubai’s most exquisite villas with a starting price of 13M. Living with your private beach and having the world’s most famous restaurants at bay. Emaar Beachfront There’s nothing like living in 1 to 4 bedroom luxury apartments while enjoying the crystal-blue waters of the Arabian Gulf and views of Dubai Marina. That is exactly what Emaar Beachfront has to offer, the city’s newest residential attraction. Due to its prime location, residents will have easy access to the beaches, Dubai Maria Yacht Club, restaurants, and the marina mall. The project consists of 1-3 luxury bedroom apartments with a starting price of 1.6M Jumeirah Beach Residence Nothing beats living in the iconic Jumeirah Beach Residence. From a glittering nightlife to a plethora of dining and entertainment options to choose from, JBR is Dubai’s most sought-after beachfront community. Residents can find everything they need at their doorstep. It is also super close to all of Dubai’s major highways, with easy access to the Metro and Dubai Marina Mall. Bluewater Residence If you enjoy the peace away from the city noise, Bluewaters Residence is the place for you! Home to the world’s largest Ferris wheel, Ain Dubai, and just a walking distannce from Dubai’s most fine-dine restaurants and an array of distinctive residential, retail, hospitality, and entertainment concepts. Starting from AED 2.3 million, you can reside in any of the 10 apartment buildings, 4 penthouses, and 17 townhouses. Dubai Water Canal Dubai Water Canal is a 3.2K long waterway that extends from the Creek through Business Bay, before finding its way back to the Arabian Gulf. Nearby you’ll find the magnificent V Hotel and Hilton Dubai as well as several dining and entertainment options. For those looking to move to the heart of the city, Dubai Water Canal has several studios to 4-bed options to choose from for both sale and lease. Residents can enjoy evening dog walks, runs, and much more! Dubai Creek Harbour Dubai Creek Harbour offers spectacular views of Dubai’s skyline, cultural offerings, shopping districts, and much more! It even has its own private beach! The premium waterfront community offers spacious 1-4 bedroom apartments with luminous interiors and breathtaking views, starting from AED 1.28M. Port De La Mer Port De La Mer is a one-of-a-kind island retreat within the busy city. It is the first freehold master community in Jumeirah consisting of ultra-lavish 1-4 beds and high-end amenities with a starting price of 1.8M. Inspired by the allure of the Mediterranean, residents can find an easy-going lifestyle here with panoramic views of the open sea and Dubai’s famous skyline. What’s unique about this community is that it can be reached by both land and sea. So for those who love to be out in the water, a spectacular coastline leisure experience waits. It is also minutes away from Dubai Mall and Dubai’s International Airport. Related articles:1. New Residential Projects in Dubai2. The 11 Best Family-Friendly Communities in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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