Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Muhammad Iqbal has been living in a rented property for more than 25 years in the UAE. However, the Pakistani expat is now planning to buy a villa because he believes the return on property investments in Dubai surpasses global cities such as London.
Mr Iqbal, 65, has already shortlisted villas available on a freehold basis in Jumeirah Village Circle, Mohammed Bin Rashid City, Jaddaf and Ras Al Khor in Dubai for his first property purchase. He has a budget of Dh1.2 million and plans to pay in cash for the transaction.
"I have done feasibility studies between the benefits of leasing versus buying, and the latter is always the best option," Mr Iqbal, an accountant, tells The National. "The amount I spend on rent does not benefit me in any way."
You will probably end up paying a lower amount as mortgage instalment than rent for the same property
He believes property in Dubai is more affordable now, and says the last time prices dropped was after the global financial crisis in 2009.
The Dubai property market is expected to become more affordable with declines of between 5 to 8 per cent this year and in 2022 as the emirate works to clear an oversupply, according to a report by real estate consultancy JLL.
The property market in the UAE slowed in the wake of a three-year oil price shake-up that began in 2014 and an oversupply of properties in the market.
The coronavirus-induced economic slowdown also slowed sales momentum. As a result, property prices were 8 per cent lower year-on-year in Dubai and 4 per cent lower in Abu Dhabi during the fourth quarter of 2020, according to JLL.
Mr Iqbal says property as an asset class is useful because it can be passed on to future generations. He is also keen on getting a residency visa linked to his property purchase because he plans to live in Dubai for the long term.
Indian expat Shruti Sayed rented an apartment for about four years after her family moved to the UAE, but purchased a townhouse in The Springs for Dh1.8m in 2015. She also bought a villa in Jumeirah Park for Dh3.5m in November 2020. Now, she plans to buy two investment properties, which will offer her a rental income to cover her children’s school fees.
“I am buying a one-bedroom apartment in Jumeirah Lakes Towers for between Dh600,000 to Dh700,000, while my husband is looking at a one-bedroom apartment in Downtown Dubai for Dh2m,” she says.
Ms Sayed, who handles the operations and sales side of her family’s investment migration consultancy, says she didn’t have a sense of belonging while renting property. If you own property, you have the freedom to alter it according to your needs and taste, she adds.
“You will probably end up paying a lower amount as mortgage instalment than rent for the same property. If you can manage the initial down payment, buying is definitely cheaper than renting,” she adds.
She believes capital appreciation, not rental returns, is the biggest benefit of real estate investment. Ms Sayed says UAE properties are undervalued and prices are quite low. She plans to wait for property prices to increase, sell her unit and buy another one with the profits.
Buyer sentiment in the UAE property market is buoyant because the government has implemented new visas and decided to offer citizenship to foreign investors, among other ground-breaking initiatives, real estate brokers say.
“We are still seeing the effects of the increase in loan-to-value ratios for mortgages and low-interest rates,” Lewis Allsopp, chief executive of Dubai-based real estate broker Allsopp & Allsopp, says.
“These two factors combined are encouraging many first-time buyers into the market and with prices still remaining affordable but slowly on the rise, buyers are jumping at the chance to purchase a home while they still can.”
The real estate professional adds that his company has seen many residents in the UAE buying second properties as an investment. He adds they have also seen “a lot of interest” from overseas buyers who are looking to move to the UAE or have been encouraged by the Emirates’ resilience throughout the pandemic.
Fees for purchasing a property in Dubai include a real estate broker fee of 2 per cent, plus 5 per cent VAT for the property brokerage, a 4 per cent Dubai Land Department fee and an appointment and administration fee of Dh4,580, Mr Allsopp says.
Meanwhile, to rent a property in Dubai, tenants will have to pay a 5 per cent deposit for an unfurnished unit or a 10 per cent for a furnished property. Tenants also pay a 5 per cent fee to the real estate brokerage, which is often subject to a minimum fee, and Dh225 to set up their Ejari contract, he adds.
In March last year, the Central Bank of the UAE increased the mortgage LTV ratio by five percentage points. This means expats are now able to borrow up to 80 per cent of their property purchase price and UAE nationals can borrow up to 85 per cent.
“This can put off potential buyers, depending on how long they see themselves in the region. This deposit is a large commitment, which could be used in another form of investment elsewhere,” says Christopher Davies, chartered financial planner at The Fry Group.
In comparison, renting allows flexibility. While renting a property, tenants can budget the overall annual cost of the property more easily. If their personal or financial circumstances change, tenants can either upgrade or downgrade their property easily, Mr Davies adds.
This deposit is a large commitment, which could be used in another form of investment elsewhere
If you buy a property with a mortgage, when you finish paying it off, the home is yours and you no longer have a monthly housing expense, says Carol Glynn, founder of Conscious Finance Coaching.
“However, I would caution against considering your home as an investment. It is an asset you will use for your own purpose, it is not income-generating,” she adds.
If the house appreciates in value, the owner can earn a return or break-even versus what they paid in mortgage, interest, fees, renovations and maintenance when they sell it.
However, housing markets can be volatile. In a down market, the value of the property could fall below what the buyer paid for it.
“The cost of purchasing a home can add up to 9 per cent of the property value, so make sure you factor this into the total cost of the purchase,” Ms Glynn says.
“Also, if a buyer is purchasing property in a new development or off-plan, there are many unknowns to consider, such as quality of build, if the development will be finished as per the advertised plans, or if there is infrastructure to support the new development.”
Meanwhile, if you rent a property, maintenance costs are usually the landlord’s responsibility. Tenants are less exposed to the rise and fall of the property market in general, Mr Davies says.
They are also in a position to take advantage of lower rents during downturns in the market, Ms Glynn says. Moreover, the Dubai Land Department's draft law to keep rents unchanged for three years will also benefit tenants.
“Rental laws protect tenants in the UAE. For example, a landlord must give 12 months’ notice for you to vacate and the conditions under which you can be served notice to vacate are limited,” she adds.
However, if you rent, you are “essentially paying someone else’s mortgage for them”. The rent you pay is an expense as opposed to payment towards an asset you own, while tenants can't make changes to the property in the same way they could if they owned the asset, Ms Glynn says.
“The cost of moving can also be prohibitive for tenants. Agent fees and deposits are usually 10 per cent of the annual rent, plus the cost of movers, changing furniture if the old does not fit in the new home and potentially landscaping if the garden is not already landscaped,” she adds.
I would caution against considering your home as an investment. It is an asset you will use for your own purpose, it is not income-generating
However, property purchases are usually illiquid and do not provide much portfolio diversification for investors. The past 12 months have taught everyone that situations can change rapidly and, as such, liquidity and flexibility are great benefits not always offered by many property purchases, Mr Davies adds.
Investors should consider other investment opportunities if they are better suited for their risk profile and goals. Mr Davies warns aspiring property purchasers not to overstretch themselves and make sure they can afford the purchase.
“Diversifying your investments across a number of uncorrelated assets may help to provide a more steady return over various market conditions, which could provide access to capital when needed,” he adds.
Financial experts classify buying an investment property as “high risk”.
“Buying off-plan, for example, can be a cost-effective option but in any country is a high risk as the investment is untested and there are many unknowns inherent in an off-plan investment,” Ms Glynn says.
Although there are certain “lower risk” communities that have proven to hold their value over time, both in terms of resale value and rental income, they tend to be at the higher end of the cost spectrum, she adds.
“Do your research, understand what you are buying, the location, the local facilities, how other properties in the area have performed in the past, what are the maintenance costs and community fees. Talk to residents in similar properties if possible to understand any issues they may have experienced with buildings and facilities,” Ms Glynn says.
Fees involved
Buying a property
- 2 per cent real estate broker fee
- 5 per cent VAT for the property brokerage
- 4 per cent Dubai Land Department fee
- Appointment and admin fee of Dh4,580
Renting a property
- 5 per cent security deposit for an unfurnished unit
- 10 per cent deposit for a furnished unit
- 5 per cent fee to the real estate brokerage
- Dh225 fee to set up Ejari contract
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
Juvenile arthritis
Along with doctors, families and teachers can help pick up cases of arthritis in children.
Most types of childhood arthritis are known as juvenile idiopathic arthritis. JIA causes pain and inflammation in one or more joints for at least six weeks.
Dr Betina Rogalski said "The younger the child the more difficult it into pick up the symptoms. If the child is small, it may just be a bit grumpy or pull its leg a way or not feel like walking,” she said.
According to The National Institute of Arthritis and Musculoskeletal and Skin Diseases in US, the most common symptoms of juvenile arthritis are joint swelling, pain, and stiffness that doesn’t go away. Usually it affects the knees, hands, and feet, and it’s worse in the morning or after a nap.
Limping in the morning because of a stiff knee, excessive clumsiness, having a high fever and skin rash are other symptoms. Children may also have swelling in lymph nodes in the neck and other parts of the body.
Arthritis in children can cause eye inflammation and growth problems and can cause bones and joints to grow unevenly.
In the UK, about 15,000 children and young people are affected by arthritis.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Killing of Qassem Suleimani
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Elvis
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Thor: Ragnarok
Dir: Taika Waititi
Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson
Four stars
PRO BASH
Thursday’s fixtures
6pm: Hyderabad Nawabs v Pakhtoon Warriors
10pm: Lahore Sikandars v Pakhtoon Blasters
Teams
Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.
Squad rules
All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.
Tournament rules
The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.
COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Other IPL batting records
Most sixes: 292 – Chris Gayle
Most fours: 491 – Gautam Gambhir
Highest individual score: 175 not out – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)
Highest strike-rate: 177.29 – Andre Russell
Highest strike-rate in an innings: 422.22 – Chris Morris (for Delhi Daredevils against Rising Pune Supergiant in 2017)
Highest average: 52.16 – Vijay Shankar
Most centuries: 6 – Chris Gayle
Most fifties: 36 – Gautam Gambhir
Fastest hundred (balls faced): 30 – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)
Fastest fifty (balls faced): 14 – Lokesh Rahul (for Kings XI Punjab against Delhi Daredevils in 2018)
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Read more from Johann Chacko
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
KILLING OF QASSEM SULEIMANI
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
