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Buying Guides
Off plan or completed: which is right for you?
Off plan means a lower entry cost, an interest free payment plan and the newest property, but no rent until handover. Completed means income from day one and an easier mortgage, but you pay in full at the start. Most of my investors buy off plan because of the payment plan.
Neither route is better. They suit different people, and the right one depends on how much cash you have now, how soon you need income and how you feel about waiting. This is how I lay it out.
Side by side
| Off plan | Completed | |
|---|---|---|
| Cash needed at the start | Deposit of 10 to 20% plus the 4% fee | The full price, or a deposit of 40 to 50% with a mortgage |
| How you pay | In stages, with no interest | In full on transfer |
| When rent starts | After handover, typically two to three years | Straight away |
| Mortgage | Limited, usually at handover | Easier to arrange |
| What you see before buying | Plans, a show apartment and the developer's record | The finished property |
| Time to complete the purchase | Reserved and registered in days | Usually within 30 days |
The case for off plan
The payment plan is the reason. On a standard 60/40 plan, a £200,000 apartment needs £48,000 to secure it, with the rest spread over the build. There is no lender, no interest and no credit check. You also buy at the launch price and get the newest specification. I explain the common structures in Dubai payment plans explained.
The cost is time. You earn nothing until the keys are handed over, and build dates can slip. Your payments sit in a regulated escrow account while you wait, which I cover in how your money is protected.
The case for completed
You can see exactly what you are buying, and it can be let within weeks. Rent in Dubai is normally paid up front for the year in one to four cheques, so income is predictable from the start. If you want a mortgage, completed homes are what most banks will lend on.
The cost is cash. You pay in full, or put down 40 to 50% with a mortgage, and on a resale there is an agency fee of 2% plus VAT on top of the 4% Land Department fee.
Who each one suits
- Off plan suits investors who are building a portfolio from income or savings, who do not need rent immediately and who want to spread the cost.
- Completed suits investors who have the cash available now, want income from day one or are using a mortgage.
- A middle route is to buy off plan part way through the build. The wait is shorter and you can see the building going up.
I show both options to most investors. Seeing the numbers next to each other usually makes the decision for them.
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.
Talk to me directly
Prefer to talk it through? Book a call with me.
Pick a time that suits you. We will go through your budget, your goals and what is available now. No cost and no obligation.
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