Buying a home in Dubai can be rather expensive, particularly if you’re an expat. You’ll be looking at a minimum deposit of 25% and 20% if you’re local. It seems locals have a slight advantage though not by much.
So, let’s say you want a home worth around one million. You’ll need at least 200,000 to buy it, and that’s assuming you already live in the local area.
Ouch, that’s not a friendly number, and while property prices are down it may still seem like buying a home in Dubai is difficult. However, there are ways to make things easier.
Calculate Your Mortgage
The first step is to make sure you know exactly how much you’re going to have to pay. The best way to do this is to use the mortgage calculator
that most home sales pages have.
Using a mortgage calculator will provide you with an accurate estimate of how much you will be expected to pay based on your down payment and the interest rate. Deals may differ slightly depending on the lender you choose to work with but not by much.
Choose A Time Period
Next, it’s time to think about how long you’ll need to save up for the property. This is also about budgeting your savings and working out how much you’ll be able to afford each month. For instance, you might work out that you can save 100+ per day for ten years.
Once you have worked this out, you can start planning your budgets. Of course, first, you need to get your finances in order.
Get Those Credit Cards Paid Off
One of the most significant issues with buying a home is your credit rating. You can improve this by paying off any outstanding debts. One of the most significant liabilities people have is credit cards.
The advantages of paying off your credit cards are that repayments are not eating away at your money which you’ll find to be very beneficial when you are trying to save and build a cushion. If you’re in too deep, you can try and pay a few of your cards off before the banks start claiming the interest as well.
Set Up A Savings Account And Automate It
A Savings account is going to add some interest
, and you should research the best savings accounts for you. Remember, some will have conditions attached to how much you need to put in and how much you can take out within a set time limit.
This is vital information to understand. To make it easier on yourself and avoid accidental spends, ensure that you are setting up an automated account. That way, you will have no choice whether you save the money or not.
Cut Costs Down
Finally, make sure that you are cutting costs where you can and making money when you get the opportunity. You can reduce costs by limiting your utility bills and going a little more green. There are plenty of fantastic ways to do this such as buying LED lights.
As well as this, you can use assets to make a little extra cash by selling clothes, furniture and any other items that you no longer use.
We hope you find this advice helpful and make sure you can start saving for a down payment on a home this year.