Developers are giving flexible payment models to meet buyers’ requirements and budgets, as tenants are looking to purchase homes in Dubai, the new models are better than traditional means of financing.

Buyers are of view that reduced interest rates will help them with making mortgage decision as it will become less costly which is why developers in Dubai are focusing on offering 1% monthly payment to support their buying needs.

During the purchase, payments plans are split into easy instalments for both ready or off-plan properties and are paid in multiple intervals. Whereas in usual plan, the payment is completed by handover.

With post-handover payments, ROI in initial years is attractive and rental returns later help in paying off the instalments. Another option is to opt for monthly terms and pay a fixed instalment each month while banks offer a fixed interest rate for a fixed term.

While deciding for better payment options, it is viable to consider below factors:

• For mortgage, it is key to ensure net rental returns are higher than the payable interest as it allows to make money during and after that period.

• Opt for the option of flexible payment plans so you don’t pay interest to the bank.

• Weigh all the opportunity costs and the benefits while making a decision.