# Buying an apartment



## Expat2016! (Aug 9, 2016)

hi,

I may be moving to Dubai in the coming months from Qatar and I am thinking of purchasing an apartment rather than renting. I will be getting a good accommodation allowance from my company and think it would be better to save this while owning my own apartment. I plan on staying for the next 5 years minimum.

Please can anyone who owns an apartment let me know if they feel this is a good idea or too much of a risk. also please advise what is required to do to purchase the apartment.


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## Chocoholic (Oct 29, 2012)

Well first thing you need to check is, is the company going to pay you the accommodation allowance directly or pay a landlord directly - some will do this.

Now is probably the best time to buy, as prices won't go any lower, they're starting to recover.

You need a wad of cash upfront - I'd say 33-35% of any purchase price, as expats can only get a 75% mortgage, but you need all the land department fees etc as well. 

Location, location, location is everything and construction quality as well.


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## Expat2016! (Aug 9, 2016)

Hi Chocoholic,

I know Dubai well and im looking at purchasing around Dubai marina or even JLT. I would be looking to put around 80% of my money into it as ive saved a lot. My company will give me an allowance of around 15000-17000AED per month.

Basically I would rather own it then give big fees to a landlord. what do you think and advise?


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## Mr Rossi (May 16, 2009)

Expat2016! said:


> *80% of my money into it*





Expat2016! said:


> what do you think and advise?


Buy a flat in London (or even 2) for a great deal due to post Brexit uncertainty and let a landlord suck up the hassles of home ownership here. 

The equity in 5+ years there will far outweigh any potential growth and absorb your "losses" from rent. 

"Rent is dead money" and "You're paying off someone elses mortgage" are ego based statements and not always financially astute thinking.


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## Racing_Goats (Sep 5, 2015)

Unless as you suggest you have a very significant portion to invest upfront (and maybe even if you do) you need residency and probably 3-6 months' minimum bank statements and salary deposits in the UAE to be eligible for a mortgage.

Personally I think you get better value for money on a 3 bedroom villa, for example, in Al Ghadeer or Al Reef (Abu Dhabi though), rent that out while you can manage to live in a smaller, rented place - your housing allowance could potentially cover both a mortgage payment on a villa and rent on a 1 bed in Marina or JLT etc and you'd have a bit leftover from rental income to cover maintenance etc, pay in extra to the mortgage or save.


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## Expat2016! (Aug 9, 2016)

I can buy the apartment outright with no mortgage and my company will be getting me residency there as they have been setup there for a long time.


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## Mustii (Jul 19, 2014)

Chocoholic said:


> Well first thing you need to check is, is the company going to pay you the accommodation allowance directly or pay a landlord directly - some will do this.
> 
> Now is probably the best time to buy, as prices won't go any lower, they're starting to recover.
> 
> ...


You can buy without having 33-35%, legally you need 25%

but the remaining % are fees which is about 6-7%, and a way to avoid paying them in case you don't have the cash, you can negotiate an apartment/villa price with the conditions seller pay those fees, yes you will be paying over the real market price for the property, but as long as your bank value it at the price you are kind of putting those fees into the mortgage.


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## johndubai (Oct 11, 2016)

Expat2016! said:


> I can buy the apartment outright with no mortgage and my company will be getting me residency there as they have been setup there for a long time.


Hi @Expat2016!

If you have the money to buy outright and your company is willing to pay you a large live out allowance then yes it is worth purchasing over renting yourself. 

The market is certainly becoming a buyers market now. Rents have not dropped as much as anticipated. Dubai Marina holds its value well in both cases. I would ask, what size unit are you looking for? As that would determine how much you benefit from the 15k live out.

Hope this helps.

Thanks,

John


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## Nursemanit (Jul 10, 2015)

I would offer a different assessment on property value in the UAE . The flat I rent for example was purchased in 2014 for 1.3 mil AED . Before the fire in our building my landlord had it on the market for 1.0 mil AED and no takers in a year. After the fire who knows how little it is worth , the fire in the Torch erased tons of value from the unaffected units so I am sure this building will have the same effect. 

Besides the downturn in oil affecting Russian and Gulf investors there is an odd perception with apartments for Gulf buyers where they do not want a " used " apartment or Villa. New Villas / buildings are what sells . This suppresses the value of existing real estate. 

To me this is a rent don't buy country . I agree with the above posters , rent in UAE buy in London.


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## KhalidAbuDhabi (Oct 10, 2016)

What area your company is located on, it really matters to have an accommodation near workplace, most of the high profile companies are near JLT or Marina but buying apartment out there would be expensive and you should have a nice budget. I m pretty sure you drive as well but keeping the terrible situation of traffic jam during work timings in mind would be best to make an idea where you can easily commute.


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