It is undeniable fact that the economic indolence may affect elsewhere but Dubai has always managed to keep its economic momentum. Likewise, investment in luxury property Dubai is one endeavour that also has fluctuations but the previous records depict its stability. In this regards, almost every other investor has to go through the difficult decision making process about owning or renting luxury homes in Dubai. Of course, this choice will not only affect the lifestyle but also the monetary status over the span of time. There appears several kinds of properties across the localities where the residents have option to own or rent residential projects. So, to assist you on this matter DxB Lux Homes comes up with the detail guide about the pros and cons of renting and owning Dubai luxury homes.
Pros of Renting a Luxury Property Dubai
Reasonable rental prices
In comparison with the owning of the Dubai luxury apartments the renting option seems modest. In particular to those buyers who do not want to make huge investment. Though, by renting real estate for modest rental prices you get a chance to reside in the main locations of the city. Also, for a renter the DLD fee, registration fee etc are comparatively low.
Short term commitment
For those who desire to make short term investment then renting luxury property Dubai is better choice. However, this option suits best to the professionals whose working timetable is not predictable there upon they can shift from one area to another.
Supply exceeds demand
With bundles of latest projects to be established in Dubai, the rental industry supply exceeds the demand. Having said that as a tenant there is more affability on the property and the prices you wish to pay.
Cons of Renting a Luxury Property Dubai
Restriction to modify the luxury property
Apart from all the perks you get as a tenant you also have to bear limited freedom when it comes to modifying your home. So if you decide to rent luxury properties then search thoroughly and then sign anything.
Pros of Owning a Luxury Property Dubai
Promising rental yields
It is the most important factor that catches the investors towards buying the property instead of renting. Considering the rental yield which according to our research is around 5.4%. In this way, buying Dubai luxury homes assure its residents high rental yields in long term.
Absence of property taxes
The good news is that upon buying a fully furnished home you do not have to pay the property taxes. You only have to pay a registration fee else no other tax is eligible for the buyer which is valid for both foreigners and locals of the city.
Rightful ownership of the property
While purchasing the property of course you become the lawful owner which means you can actuate it whenever you want. Whether you like to rent it, resell it, or even isolate it.
Cons of Owning a Luxury Property Dubai
Initial Expense of owning property
As mentioned above, the tenant is free from paying initial expenses like Dubai Land Department charges (DLD) but it is unlikely while owning the luxury property in Dubai.
After considering all of the above, the city of Dubai gives modern living opportunities to each kind of resident. As mentioned above, renting luxury properties seems to be a convenient option for those with limited finance. On the contrary, purchasing real estate is quite an investment that shows more viability. Therefore, the best way to tackle real estate investment is to analyse different aspects and your requirements which will take you on the right path.