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Finance and Payment Plans
Dubai payment plans explained
A Dubai payment plan lets you buy off plan in stages with no interest, no lender and no credit check. The developer sets a schedule, you reserve with ID and a booking fee, and you pay while the property is built, and sometimes after you have the keys.
Payment plans are the main reason overseas investors can buy in Dubai without a mortgage. They are also where I see the most confusion, so here is how the common ones work.
The four common plans
| Plan | How it splits | Who it suits |
|---|---|---|
| 60/40 | 20% deposit, 40% in stages, 40% on handover | The standard. Suits most investors |
| 20/80 | 10% deposit, 10% in stages, 80% on handover | Back loaded. Suits a mortgage at completion |
| 50/50 post handover | 20% deposit, 30% in stages, 50% over two years after handover | Rent helps fund the later payments |
| 1% a month | 20% deposit, then 1% monthly through and after the build | Funded from income, not savings |
Typical splits. Every developer sets its own schedule.
A £200,000 apartment on 60/40
| Stage | Sterling | Dirhams |
|---|---|---|
| Deposit with the contract, 20% | £40,000 | AED 196,000 |
| Land Department fee, 4% | £8,000 | AED 39,200 |
| During the build, 40% | £80,000 | AED 392,000 |
| On handover, 40% | £80,000 | AED 392,000 |
£48,000 secures the property. A booking fee holds the unit first. The rest is spread over a build of typically two to three years.
Things to know
- No interest and no lender. Longer plans usually carry a slightly higher price.
- Missed payments can let the developer cancel and keep part of what you paid.
- Selling before completion is usually allowed once 30 to 40% is paid.
- A mortgage at handover can fund the final payment.
- Payments are in dirhams. A currency specialist usually beats a high street bank.
How I can help
Send me your budget and what you want to achieve and I will come back with two or three featured projects that fit, each with a 5 year illustration of equity and rental income. You can see the kind of property I recommend in the featured projects, read the full picture in my free 26 page guide, send me your brief, or book a call with me.
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