Pros and Cons of Long Payment Plans for Off-plan and Ready Properties in Dubai

With the diversity of economy and comfort coupled with luxury and endless opportunities, purchasing property in Dubai, especially with long payment plans for off-plan and ready properties, is worthwhile. The living-friendly environment, high pay rates on return, and absolute minimal taxation make one urge to grasp every possible opportunity. With the emerging buying trends, the possibilities and opportunities have paved the way for endless opportunities for developers, investors, and buyers.

Continue reading to find out all the details of these budget-friendly deals and an insight into the properties one can purchase with minimalist budgeting.

Why is Dubai a Property Hub?

Dubai’s property is renowned for its worth in both re-sale and the highest recorded rentals. In other words, no matter what the actual property is, the word profitability is always alongside. The taxation and legislative regulations have paved the way to ensure the most comprehensive effect. Moreover, the connectedness with the world, the infrastructure, the businesses, and education make it all attractive enough for people worldwide to indulge in and invest.

What are Long Payment Plans?

The traditional payment plans, including the installment one, while providing a bit of relief, were way too impossible for many. It is due to the short period that requires one to pay a lot monthly. However, long-term payment plans are superior in cutting down on this considerable sum, declining the down payments, and making the dream purchase hassle-free. Such programs usually cover projects ranging from 7 to well about 20 years.

They offer a suitable alternative to banking finance alongside similar services, excluding third-party services and commissions.

What Properties can be purchased on Long Payment Plans in Dubai?

In a broad sense, the payment plans in Dubai currently offer the following categories of properties.

  1. Ready-to-live properties

These generally refer to apartments and villas that are entirely constructed and ready for one to move in. Many people prefer investing in these rather than spending thousands every month on a rented home. These properties generally demand a sum as a down payment and allow one to move in and complete the rest of the transactions per the agreed deal. 

  1. Offplan properties

These traits are the properties that have not been developed, instead are in processing and planning. Such properties are generally considered to be a lifesaver for investments while adding up to them. These typically involve localities with big turnbacks shortly. The worth of such properties proves better as the developers generally permit one to sell an off-plan property before completion. Many people are currently working on such schemes for investment and betterment.

Pros of Long Payment Plans

Here’s why these long-term payment plans have revolutionized living.

  1. Lower interest

Payment plans made on a long-term basis are generally offered at a lower and zero interest rate. It implies that while the borrower benefits, the lender also receives long-term stable paybacks, thereby ensuring profitability at both ends.

  1. Minimal down payment

A significant benefit is that long payment plans generally cover a massive transaction sum. It means a considerable cutdown of the actual down payment, which substantially causes chaos in traditional financing and mortgage payments. 

  1. Diversified payment opportunities

Such plans generally have diversified payment options, from the usual monthly deals to quarterly and yearly. It, however, is still largely dependable on the type of property and the developers.

  1. Lack of stuck amount

Long payment plans allow access to savings and better investment opportunities. It means that rather than investing in a single home budget, one can save up and invest in multiple platforms to generate newer sources of income. In turn, these can maximize revenue and profitability.

  1. Convenient

These payment plans have enabled almost everyone to invest and own their dream home with minimal formalities. Traditionally, the roadway to meet the amount required for down payments and the formalities to fulfill while choosing the right mortgage were too much to rely upon.

  1. Limitless deal

While a home mortgage has limitations in providing the amount, payment plans are free of such liability. It implies that no matter how expensive the home is, you can sit back and pay back without worrying about payment plans. However, for the mortgage, the lending limit usually ranges between 40-60% of the home value.

  1. Flexibility

Payment plans come with a great deal of flexibility. For instance, the general 60/40 payment plans involve payment of 60% of the total amount in installments for years and then handling over the 40% at the end. However, the choice of the plan relies solely on personal preferences.

  1. Gold coin for young investors

Long-term payment plans are worthwhile for young investors. The ease of cash flow and lack of credit requirements is what a young investor seeks. It has created the possibility of endless benefits in the long run.

Cons of Long Payment Plans

As every blessing comes with a disguise, so are these payment plans. However, with a bit of carefulness, these cons are indeed easy to handle. 

  1. The deadlines

In a nutshell, the worst aspect of long payment plans is the impending deadline. You’ll have to be extra careful to work around the calendar, or you may be subject to violation penalties. It is something that can sometimes get tricky.

  1. Stuck up

While being an ice cream scoop on usual days, payment liabilities can get tiresome on some rainy days. It means there’s no way to avoid or get out of it once committed. However, the possibility of now selling midway is a lively idea.

  1. Exhaustibility

Being stuck in a long-term payment plan is something exhausting. To meet up with the dues, one must strictly follow tight budget schedules. It can sometimes involve cutting down the bare necessities to meet the property’s requirements.

  1. Failure to invest elsewhere

Making a long-term commitment means allocating a sum of the budget to the exact cause. It can sometimes lead to missing some convenient investment opportunities. However, most of these opportunities offer short-term benefits and lag behind the actual long-term profitability of real estate in Dubai.

Pros vs. Cons

In a broad sense, the pros do outweigh the cons. It, however, requires a great degree of vigilance. It is because a slight lack of management and minimal lag of insight into the budget can lead to massive troubles in turn. Additional factors can include not choosing the suitable locality, the appropriate dealers, and sometimes the right plan.

Long-term payment plans, therefore, need to be chosen carefully. Studies indicate that it’s always better to think twice before deciding rather than regret the outcome. Perhaps it’s not unfair to seek advice and reassurance.

How to Choose the Right Long Payment Plans?

A long-term payment plan is not a sole entity but comes with its own possibilities. In a broad sense, these are defined in ratios of the amount to be paid in installments against the amount that needs to be paid at the end. This is the time of the full possession receiving. So, the plans include the following:

  1. 60/40, the most common ratio preferred throughout
  2. 70/30
  3. 80/20
  4. 90/10, the most preferred and convenient mode for newbies and young investors

The choice of long payment plans, however, should be made based on the following considerations:

  1. Current budget and liabilities- to have an insight into yourself
  2. The average saving per month- to get a glimpse of the amount that one can be paid regularly in addition to savings that need to be done to pay the remaining ratio at the end.

Additionally, a strict monetary calculation should be made before choosing a plan. Don’t forget to set aside an amount each month for some additional expenses that might come along the way. This is because missing this can lead to expenditure from the allocated installment budget, which can prove to be a mess.

Best Long Payment Plans

Though each platform is unique concerning the offerings, here’s an insight into some of the most renowned platforms that you can trust without a doubt.

  1. Tiger

This unique group offers highly luxurious apartments with an absolute interest-free plan for as long as 7 years.

  1. Emaar

The platform offers highly flexible services available for a range of different properties. Though varied, the luxury and benefits are well-defined.

  1. Elysee

Though it comes away with a con of limited slots, it offers a range of offers from 5-10 years. The prime location is a hot cake for almost anyone to buy.

Real estate vs. Business war

While investing in businesses is what traditionally was sought, getting into real estate is increasingly becoming more attractive. It is, i.e., because

  1. Scam risks are minimal
  2. Benefits are maximal
  3. Opportunities are endless
  4. Offers the most effective source of passive income
  5. Capital gain is ensured
  6. Safest means for inexperienced and young investors

In a nutshell, while businesses offer one-way benefits, real estate ensures both short-term and long-term gains.


Ages of budgeting and planning are what traditional home purchasing was like. However, a long plan for off-plan and ready properties is what has revolutionized investing opportunities. It has now become possible for almost everyone to grasp the profitability in the hub of this top economy. It indeed offers a bright and secure future.

However, the time is not far when these would become saturated enough to grasp, and there would be nothing but regret. So, while the time is right, try your luck now!

Stay tuned for more informative posts.

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