- Pros of Buying Pre-Owned Properties
- Cons of Buying Pre-Owned Properties
- Pros of Buying New Properties
- Cons of Buying New Properties
- FAQs
Investing in UAE’s real estate market is a progressive step towards a secure and higher investment return. The market offers an array of properties, ranging from skyscrapers to floating villas. The property buying process is multi-layered and involves some important considerations, among them choosing between new or used property tops the list. New and used, both property types come up with their own sets of pros and cons, and it is the investors’ call to opt for any of the property types.
Before you decide, read through the pros and cons of buying pre-owned vs new properties mentioned below in detail.
Buying Pre-owned vs New Properties: Pros and Cons
Whether investors opt for buying a new or used home, there are certain benefits of buying a property that they will leverage. If the property is chosen wisely, the benefits will increase. Following are all the pros and cons of buying a new home vs old home that will help you make a decision.
Pros of Buying Pre-Owned Properties
Here are all the pros of buying a pre-owned property in the UAE.
Established Neighbourhood
Pre-owned properties are often located in an established neighbourhood, providing a better idea of lifestyle and environment. All basic lifestyle amenities are available in these areas, ranging from shopping centres to leisure activities. Moreover, these neighbourhoods offer higher ROI than off-plans or properties in newly built areas.
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Array of Options
UAE is a mosaic of cultures, and you can witness the diversity in different properties in the region. From modern skyscrapers to villas with traditional Arabic architecture, all are available in the pre-owned property segment. That said, opting for a pre-owned home facilitates investors to choose from varied architecture, built quality and designs.
Reasonable Price Range
Old houses are considered more affordable contrary to new ones, as they are directly purchased from the owner. That said, direct dealing provides multiple other benefits, including negotiable prices. The better you negotiate, the better you will get value for money.
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Cons of Buying Pre-Owned Properties
Now that you are aware of all the pros of buying a pre-owned property let’s move towards its cons.
Maintenance and Renovations
Pre-owned properties require renovations and maintenance work, costing new owners a lot. Generally, the cost depends upon the conditions and construction of the building, but any property that is older than 10 years, requires significant repair work. Aside from initial maintenance, the new owner must also maintain a home maintenance checklist to keep the property in shape.
Therefore, it is suggested to spare some additional money in your budget when buying pre-owned villas for sale in the UAE.
Outdated Design and Decorations
Although pre-owned properties are available in different sizes, designs and layouts, the majority of them will need to be updated. That said, redecorating it according to the latest trend might cause stress on your budget.
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Limited Payment Options
Different types of payment plans are offered when buying a newly built or off-plan property. However, the buyers of pre-owned homes are exempted from this facility. Generally, buyers have to pay the full amount before the possession, along with other legal charges like property transfer fees and others.
Pros of Buying New Properties
Following are the pros of buying newly built properties in the UAE.
Modern Design and Amenities
If you are looking for a dream home with cutting-edge technology and mesmerising interior, then newly built properties are for you. These properties offer a wide range of the latest lifestyle amenities that are often missing in pre-owned houses. From latest door designs to advanced lighting systems, you can find all in a newly built property.
Flexible Payment Plans
The payment plans of off-plan properties or newly built houses are more flexible, contrary to pre-owned ones. Aside from flexible payments, builders also offer exclusive discounts for promotional benefits, making it more feasible for buyers. For instance, some builders offer to pay the transfer fee charged by DLD, significantly reducing the overall cost.
Less Investment
The downpayment and other initial investment cost of buying a newly built house is lesser than a pre-owned property. Moreover, after paying a certain amount, buyers can avail of home finances offered by different financial institutions in the Emirate. In comparison to the initial investment and other financial benefits, the ROI offered by newly built properties are appreciable.
No Refurbishing Cost
Unlike other property units, newly built properties are exempted from any sort of maintenance and refurbishment. The house is delivered completely finished by the builder; all you have to do is to hire a home moving company in Dubai or the Emirates you are living in and move into your new residence.
Cons of Buying New Properties
Before you make any decision on the basis of the pros of buying a new property, here we have also listed some cons of buying it.
Project Abandonment
It is rare that an off-plan project gets abandoned by the developer, but in rare cases, it can happen. Although you can claim back all the paid instalments secured in an escrow account, the process can be daunting.
Unforeseen Delays
The UAE government has strict rules and regulations for handing over projects to buyers on time, but delays can happen. Builders are facilitated with a grace period if they have a justified reason for construction delays. After that period, buyers are allowed to take legal action against the developer. Here are all the details on how you can handle delayed property handover.
FAQs
Can I buy a new home as an expat in Dubai?
Yes, expats can buy properties in Dubai; however, only in the designated freehold property areas. Here is the complete list of freehold property areas in Dubai.
Is it a good time to buy a house in the UAE?
The real estate market of UAE is continuously growing, making it an ideal country for investment.
Is buying a property in the UAE worth it?
Yes, the UAE’s real estate market has a proven track record of upward trajectory leading to higher investment returns.
This was all about buying pre-owned vs new properties that you should be aware of before reaching a verdict. UAE’s real estate market is a stable investment opportunity, regardless of the property type you are investing in.
The law and order situation, tax benefits and investor-centric policies have attracted buyers from all across the world. If you are interested in availing these benefits, browse through this list of properties for sale in the UAE and invest in an ideal unit.
Stay tuned to dubizzle’s property blog for more information on the difference between buying pre-owned and new properties.
