# Rent to Own Apartments.



## Felixtoo2 (Jan 16, 2009)

Well it`s getting close to that yearly rent renewal and like everyone I don`t care how much your rent is there is something sickening about signing a cheque for the price of a small car or a great motorbike and then giving it to someone that you don``t know.

Has any looked into the Emaar, or similar, rent to own scheme? Where are the apartments that they offer it on? Is anyone actually doing it?


----------



## pamela0810 (Apr 5, 2010)

They used to have this on offer when they first started developing properties about 4-5 years ago. Then everything went up the roof! Oddly enough, I was thinking the same thing and would love to hear from people about this.


----------



## Dozza (Feb 17, 2009)

Felixtoo2 said:


> Well it`s getting close to that yearly rent renewal and like everyone I don`t care how much your rent is there is something sickening about signing a cheque for the price of a small car or a great motorbike and then giving it to someone that you don``t know.
> 
> Has any looked into the Emaar, or similar, rent to own scheme? Where are the apartments that they offer it on? Is anyone actually doing it?


Im with you on this. I have a couple of properites I rent out in the UK, so im not one for wanting to pay someone else's mortgage.

Im moving to Dubai today, so will be wet behind the ears when it comes to purchasing property in the UAE, but I will defo be looking into it.

Its obviously going to have to be a long term investment, as the days of short term gains are gone.

It will be interesting to gauge other peoples thoughts on this

Craig


----------



## Maz25 (Jul 6, 2008)

Dozza said:


> Im with you on this. I have a couple of properites I rent out in the UK, so im not one for wanting to pay someone else's mortgage.
> 
> Im moving to Dubai today, so will be wet behind the ears when it comes to purchasing property in the UAE, but I will defo be looking into it.
> 
> ...


I work in construction and my advice is DO NOT BUY a property here. You only ever own the bricks and mortar, which due to the poor quality here, will last no more than 30 years. Cracks start appearing in the buildings even before the first tenant has moved in. Freehold here is also nothing more than the UK equivalent of leasehold. If you want to rebuild, you always have to go back to the developer because you need his permission and the original design as you cannot change the design of your villa to something that you like (you need the developers permission to make any structural change!) - this is one fight that a property owner will never ever win in this place. There are far too many unwritten laws and loopholes for the developer to use against you! For e.g, if you cannot make your payments, you lose the property and all previous payments but if the developer has delayed the handover date, you have very little recourse, most of which you will not be aware of so will therefore, because you didn't know what to do, inadvertedly consent to these delays through your inaction and lose your right to fight the developer!

But, if you think that property ownership is for you, find yourself a good lawyer and do not attempt to buy a property on your own - else, it will all end in tears. Check the maintenance fees - they are astronomical and whilst your property value goes down, maintenance fees go up. Your warranty is only valid for 12 months, after which all maintenance issues become your problem! As a tenant, dealing with maintenance issues is ridiculously stressful - I certainly would not want to be the owner!


----------



## wandabug (Apr 22, 2010)

I don't know if Emaar are still doing that scheme but you can check their website for info.

I know people who looked into it at the time in Old Town, you rented for a year and then had the option to buy but with the rent paid to date deducted from the purchase price, however it appeared that the purchase price was inflated. 

I have bought properties in Dubai (before the prices went sky high and dropped again) and am extremely happy with the rental return I am getting + I am not paying rent myself. There is no way I could get anywhere near the same return back home. 

As with anywhere location is important. I plan to sell in the next 5 years while they are still in good condition, even if prices do drop further I will still get back more than I paid and I have had a great income.

There are alot of horror stories - buyers have been affected all over the world not just Dubai,but I personally think that as long as you choose a good development in the best location you can afford it is still worth buying in Dubai even if it is just to be rent free for a few years.


----------



## Mr Rossi (May 16, 2009)

Why is rent dead money, prior to Thatcher, people rented all their lives and saw no problem with it? In Europe it is still common practise to rent.

Resign yourself to the fact that you will always be renting in Dubai and invest in the safer UK market.


----------



## Maz25 (Jul 6, 2008)

Mr Rossi said:


> Why is rent dead money, prior to Thatcher, people rented all their lives and saw no problem with it? In Europe it is still common practise to rent.
> 
> Resign yourself to the fact that you will always be renting in Dubai and invest in the safer UK market.


I couldn't agree more. A few years back, there was a realistic prospect of making money from investing in a property here. Right now, helped partly by the recession, there is a realistic prospect to lose a lot of money and shed even more tears!


----------



## woodlands (Jan 13, 2010)

Felixtoo2 said:


> Well it`s getting close to that yearly rent renewal and like everyone I don`t care how much your rent is there is something sickening about signing a cheque for the price of a small car or a great motorbike and then giving it to someone that you don``t know.
> 
> Has any looked into the Emaar, or similar, rent to own scheme? Where are the apartments that they offer it on? Is anyone actually doing it?


Unless you are terribly worried about inflation, which i ain't, and even the markets ain't it would be a horrendously stupid idea to buy. What you ignore is that when u buy with a mortgage u hand over interest to the bank, which is a large amount paid to someone u don't know as well.


----------



## hubbly_bubbly (Oct 17, 2010)

There are alot of horror stories - buyers have been affected all over the world not just Dubai,but I personally think that as long as you choose a good development in the best location you can afford it is still worth buying in Dubai even if it is just to be rent free for a few years.[/QUOTE]

Hi Wanda,

Any thoughts on what good developments there might be... even for a few years? Is there a general "consensus" amongst the expats of good, bad and wouldn't touch it if it were the last house on the planet? Or are they all gonna slip away with the desert? 

Thanks


----------



## marc (Mar 10, 2008)

Emaar did do RTO but their prices were beyond over priced. 

We did it at our company, but you had to buy it, not rent for 1 year and then see if you wanted to buy it. 

It was basically a way of buying and moving into a ready property on a payment plan 12-24 months e.t.c - then pay the balance after the first 1-2 years. 

We did quite a few and had a lot of interest, but It was hard to find sellers, because they all wanted their money ASAP.


----------

