Most people find it difficult to make a 100% down payment when taking the example of buying off-plan apartments uae somewhere at https://everhomes.ae/off-plan/apartments-for-sale/. That's why the trend of buying real estate in instalments is widespread. Developers offer their buyers a comprehensive payment plan for their ease and convenience. Essentially, the payment plan defines the number of payments to be made over a fixed period of time, as well as the amount to be paid in each payment when buying a property in Dubai.

It should be noted that different developers offer different types of payment plans. In this article, we shed light on the different types of payment plans most commonly offered in Dubai:

The 4 most common payment plans when buying property in Dubai

1. Post-transfer payment plans
A post-transfer payment plan, as the name implies, allows the buyer to make a payment after the property is transferred to them in Dubai. However, they still have to pay a certain percentage of the total cost before they can own said property.

The post-transfer payment plans introduced in late 2013 were mostly offered for larger projects. But the popularity of this payment plan has led to private developers picking it up, too.

This type of payment plan is usually designed for investors looking for real estate in Dubai. It gives them great convenience because they can take the property and rent it out after the transfer. They use the rental income to pay off the remaining balance. The fact that the return on investment in Dubai is at a higher level, as is the rental income, has contributed to the success of this payment plan. End users (buyers) also favour this payment plan because it allows them to move into the property they purchase and conveniently manage the remainder of the payment.

2. 10/90 payments.
This can be called another, more aggressive form of post-transfer payment plan. The developers offer this for properties outside of the Dubai B plan. As the name implies, 10% of the total value of the property in Dubai must be paid initially, and the remaining 90% is paid in instalments.

This is a fairly new payment plan that is equally popular with buyers and investors. It offers them a safe and convenient way to buy property in Dubai or add more listings to their inventory, respectively. Those who are short on cash can choose apartment complexes with these payment plans and reserve the property in their name.

3. Installment before transfer
Most regular payment plans are divided into interest paid at different stages before transfer. For example, if you have a 60:40 payment plan, you will pay 60% in instalments before the transfer and the other 40% when you transfer the property.

Such a payment plan can often be seen in the following ratios: 10:90, 20:80, 40:60, 50:50, 60:40, 70:30, 25:75, etc. etc. These are not fixed ratios and vary from developer to developer.

4. rent to own payment.
This is a very popular payment method in many countries. The owner-occupied payment plan targets end-users and is only available for properties that are ready to move in. It is more suitable for buyers who do not have enough cash to make an upfront payment for a property in Dubai.

Under this plan, a lease is signed between the landlord and tenant for a period of X years. The annual rent in this payment plan is higher compared to the market price. Under this agreement, the tenant will become the buyer of said property in Dubai if the terms of the agreement are successfully fulfilled by both parties.

This method allows the tenant to use the rent as a down payment on the property. For the remaining amount, they can obtain a mortgage through banks or private lenders.

Final Thoughts
Considering the high prices of real estate in Dubai, the aforementioned payment plans do work in favor of investors and buyers. However, it is important to note that not every project or property in Dubai has the same payment plan, even if designed by the same developer. So, do your research before choosing one of the many properties in Dubai available on Property Promotion and then make an informed decision.