# Mortages or finance properties



## alfredojim (Oct 7, 2010)

Hello!!

I'm mexican working for a oilfield services Co and I'll be transfer to Dubai in about 15 days. I would like to take advantage of my housing allowance to buy something rather than paid a rent, I don't have enough money to pay for an appartment in one exhibition so I would like to know if expats can get mortages or if there are real estate develpment Co's which finance their clients wether they are local or foreigns?

Any information can be useful, thanks for your comments,

Alfredo


----------



## VitaEsMorte (Apr 26, 2010)

Since Dubai is comprised of expats mostly, of course finance co's and banks provide mortgages to the expats. However, credit facility is hard to allign nowadays. One can get a mortgage from a finance company (not a bank) but they mostly charge high interest rates. 

Besides, banks provide much more suitable rates, but they have many restrictions (security check, 1-year accomodation, at most %75-80 of the home price etc). So, you'd better come and see by your eyes what's happening.


----------



## Azamj (Oct 7, 2010)

There are a small number of banks that lend. It depends on your line of work and what they analyze as your job security. Interest rates are high but achieving finance is possible. Let me know what you are looking for, I will be happy to refer you to my agent and mortgage advisor.


----------



## Maz25 (Jul 6, 2008)

My only advice is that you research all the implications of property ownership before you head down this road. It can very quickly turn into a nightmare. Aside from budgeting for your mortgage, make sure you budget for a lawyer to guide you through the whole process and also explain all your rights AND all the potential costs such as services fees, maintenance, etc that you will have to shell out over the life of the property and also the eventual return on the property if you choose to sell it later on. You need to understand the market sufficiently to be able to make an informed decision - at the present, properties are way cheaper to buy than a few years ago but also very difficult to sell if you need to make a quick sale!

During your first year here, I would strongly advise against making such an investment. Give yourself time to study the market first and then make your decision. As a newcomer, you are a prime target for desperate agents to sell you properties that are not to your requirement, come with high maintenance fees, have structural issues, etc and at this stage, they would convince you that you are getting the best deal - by the time experience teaches you a few tricks, you may already be tied to a property that you would have most likely not invested in had you had all the facts and known all your rights from the get-go.

Also, how long do you plan to be in Dubai for? If you are planning to be here for just 2-3 years, then avoid buying at all cost - you will make a loss from day one as due to falling prices, you will at best break even if you manage to sell the property later on. If you are planning to be here for 5+ years, then it would make more sense to buy but again give yourself time to decide whether you like this place enough to live here for a couple of years. From abroad, the UAE seems great - I loved the place before I moved here but having lived here for 2 years, I can tell you I absolutely hate this place and I'm looking to leave as soon as I find a new job! You may turn out the same and if this proves to be the case, owning a property would just cause you stress as you would find yourself in a situation of wanting to leave but not being able to do so because you can't sell the property.

Best of luck with your move here and your decision.


----------



## HannuK (Sep 17, 2010)

I am looking at doing something similar but my plan is to rent for a year and save enough cash so that I can pay those 15-20% myself and take a mortgage for the rest.

I agree with Maz25 it is always important to know the market and all pitfalls as well as the country itself before taking action.

In any case best of luck with your endeavor.


----------



## Elphaba (Jan 24, 2008)

To correct an earlier post, banks do provide mortgages. 

Generally, you are required to have been in permanent employment, with the same company, for at least six months and will need a deposit of 30%.

Be warned that we expect property prices, for apartments at least, to fall further in the next few months. I really do not feel that that is a good time to buy.

Maz25 has given good advice amd I would also point out that freehold ownership is NOT the same as elsewhere.

-


----------



## VitaEsMorte (Apr 26, 2010)

Elphaba said:


> To correct an earlier post, banks do provide mortgages.
> 
> -



I just wanted to emphasize the difference btw a bank and finance co., since a new comer may perplex. 

While having my car, an agent from a famous finance co. came and told me their "easy" process in financing the car; telling me their finance co. was actually a bank 

However, the rate in the finance company was %14 and it was reducing until %8. I got a rate of 4.99 from the bank.


----------



## alfredojim (Oct 7, 2010)

VitaEsMorte said:


> Since Dubai is comprised of expats mostly, of course finance co's and banks provide mortgages to the expats. However, credit facility is hard to allign nowadays. One can get a mortgage from a finance company (not a bank) but they mostly charge high interest rates.
> 
> Besides, banks provide much more suitable rates, but they have many restrictions (security check, 1-year accomodation, at most %75-80 of the home price etc). So, you'd better come and see by your eyes what's happening.


VitaEs Morte thanks for your comments I'll take them into consideration : )


----------



## alfredojim (Oct 7, 2010)

Azamj said:


> There are a small number of banks that lend. It depends on your line of work and what they analyze as your job security. Interest rates are high but achieving finance is possible. Let me know what you are looking for, I will be happy to refer you to my agent and mortgage advisor.


Thanks for your reply Azamj, following another recommendations I guess once there I'll take my time to know the market and decide wether buy or rental is better for my needs but if you found a good real state agent and mortgage advisor I'll appreacited if you can give me their phones so I can contact them if needed, once I'm in Dubai. 

Cheers!


----------



## alfredojim (Oct 7, 2010)

Maz25 said:


> My only advice is that you research all the implications of property ownership before you head down this road. It can very quickly turn into a nightmare. Aside from budgeting for your mortgage, make sure you budget for a lawyer to guide you through the whole process and also explain all your rights AND all the potential costs such as services fees, maintenance, etc that you will have to shell out over the life of the property and also the eventual return on the property if you choose to sell it later on. You need to understand the market sufficiently to be able to make an informed decision - at the present, properties are way cheaper to buy than a few years ago but also very difficult to sell if you need to make a quick sale!
> 
> During your first year here, I would strongly advise against making such an investment. Give yourself time to study the market first and then make your decision. As a newcomer, you are a prime target for desperate agents to sell you properties that are not to your requirement, come with high maintenance fees, have structural issues, etc and at this stage, they would convince you that you are getting the best deal - by the time experience teaches you a few tricks, you may already be tied to a property that you would have most likely not invested in had you had all the facts and known all your rights from the get-go.
> 
> ...


Maz thank you very much for your detail explanation, I appreciated you take the time to give me such a good, interesting and useful advices, I guess I'll follow your recommendations, I'll rent something when arriving and take the required time to know the market before jump into an important decision such as buying, I was more worried about the financing part but there are many others aspect I should take into consideration.

Kindest regards!


----------



## alfredojim (Oct 7, 2010)

HannuK said:


> I am looking at doing something similar but my plan is to rent for a year and save enough cash so that I can pay those 15-20% myself and take a mortgage for the rest.
> 
> I agree with Maz25 it is always important to know the market and all pitfalls as well as the country itself before taking action.
> 
> In any case best of luck with your endeavor.


Hi Hannuk! yes I guess I'll do something similar to what you're doing, I might rent something cheap for about 6 months and after knowing the city and the market a bit better I'll take a better decision. 

Thank you!!


----------

