'It's cheaper to pay mortgage than rent'

06.01.2015
Research made by ValuStrat Consulting reveals that in some Dubai locations it is now cheaper to pay a monthly mortgage then rent.
A new research report has found that it is now cheaper to pay a monthly mortgage in some parts of Dubai than rent, Zawya reported. ValuStrat Consulting Director and Group Head Declan King points out that a stabilisation in residential sales prices during the 2nd half of 2014, coupled with continued increases in rental rates during the same period has brought about a scenario where it is now cheaper to pay a mortgage then equivalent rent. He acknowledges that home ownership comes with added responsibilities, additional costs and less flexibility than renting, but suggests the research indicates that for some tenants the numbers may now justify their considering becoming owner occupiers instead of tenants.

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Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

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None

Additional services:

Property management

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Contract of the lessee and agency.

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Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

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-5% agency commission of the annual contract price

Additional services:

None

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1 hour

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~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

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Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

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the management process

1 hour

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1 year

Rendering of management services

1 day

Reporting

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Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

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