Rent to Own Payment Plans in Dubai
Rent-to-own schemes are emerging as a viable alternative for aspiring property owners who might not otherwise have the down payment needed to buy a home in Dubai. The rent paid on a home under such a scheme will be converted as equity towards buying the home.
It’s a win-win for both parties involved since developers get to sell their current ready-to-move-in stock while end-users can afford to buy where they couldn’t before due to lack of down payment funds.
Each rent-to-own scheme is unique, but they are all basically an agreement between the developer and the property seeker whereby the rent paid goes towards the purchase of the property. There is a small upfront payment (which varies depending on the payment plan but is substantially lower than the 25% downpayment required for a mortgage), and the rent is slightly higher than if the same property was being rented in the normal way. However, the higher rent is justified, as this amount is put towards the down payment and purchase of the property.
There are close to 8.4 million expatriates living in the UAE based on figures released and collated over the past two years. These expatriates have been living in the country for periods ranging from one year to 50 years or more. For most expats, UAE is a second home, many only returning to their own nations upon retirement. Quality of life, tax-free incomes and savings are major causes for this trend.
Kappa Acca, one of the known property developers in Dubai is now offering Rent to Own options with up to 10 years payment plans for its new 1 bedroom and 2 bedroom apartments in Dubai South. For more details on the project, please visit https://kappaacca.ae/projects/kappaacca3/
