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Ways to Find Apartments for Sale & Rent in Dubai Without Making A Down Payment

Posted by admin on September 27, 2021
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The process of finding the apartments for sale in dubai or apartments for rent in dubai has
been changing years after years and today, things are made relatively easier for the buyers.
However, it would be best if you acted smart when planning for best property investment in
dubai. No matter how rich you are and how badly you want a luxury property in the city, you
will still want to save some money in the process.
So, are you planning to find apartments for sale in dubai or apartments for rent in dubai? If
so, we have got you some tested and proven tips to get a property in the city without a down
payment. Have a look and decide what works best for you!

 

1. Use Your Existing Property

If you are short of cash for the down payment to invest in apartments for sale in dubai or
apartments for rent in dubai, you can use an already existing property. Yes, you can use your
local or international property to get the extra cash for buying a new property in the UAE. You
can talk to your seller and mortgage lender about the situation and use this option without
refinancing the mortgage.
Once everything is finalized with your seller, you can get an additional mortgage against the new
property. However, it also depends on your budget and affordability.

2.Seek Seller Financing

Seller financing can be a good option when looking forward to buying apartments for sale in
Dubai or apartments for rent in dubai without paying for a down payment. If your seller has
no outstanding mortgage payments on the property in consideration, he/she might consider seller
financing. It is a kind of deal that makes the seller your mortgage holder and you (the buyer), the
title holder. As per the negotiations that take place between you and the seller, a mortgage
application/statement can be prepared.

A seller will readily agree to go with this deal if they have several properties. You can also have
another plus point and save on paying a down payment for your new apartment, only if your
seller wants to defer the tax against the large down payment.

3.Try Property Exchange

Another way that can help you to buy apartments in Dubai without paying for the down paymentis exchanging properties. This will work for you if the seller agrees to exchange properties withyou. You can get down to a well-negotiated dal without any down payment.It might be a difficult way as a straight property swap is not found easily. Even if you do, youmay have to include some cash in case the property you propose to exchange is less than thevalue of the new property. Nevertheless, it is still a good option for you.

4. Look for Lease-To-Own Options

 

In a lease-to-own option, the buyer can lease the property from the builder/seller for a definite period before purchasing the property. The selling price (purchasing price) will be finalized as per the initial negotiations. It indicates that you don’t need to pay a down payment to move into your new apartment. With the help of such options, the buyer can live in the house and increase savings and improve credit rating before purchasing the property.However, it would help if you kept in mind that an option like lease-to-own can make you end up paying a higher cost than going for a traditional mortgage.

 

5. Utilize Your Non-Cash Assets

Here’s another way out to buy apartments in Dubai without a down payment, which completely depends on the seller. If you are ready to deal with your non-cash assets like car, furniture, etc.you can save on investing cash.


It would be best if you convinced your seller that you would pass over your furniture, car or an equivalent item/asset to cover the amount of down payment. Suppose the value of the exchangeable items is higher than the down payment value. In that case, chances are favorable for your seller to agree to the deal. How can it work for the seller? They will not have to deposit the cash in a bank that offers low rates of interest! However, do proper research before making a move.

6. Assume a Current Mortgage

To release funds for a down payment, you can assume an existing mortgage. When you assume a mortgage, you take charge of the responsibilities of all the outstanding payments without investing in the down payment.

A deal as this is called ‘Subject to’ contract, which includes the buyer (you) utilizing the existing financing of the seller for the deal. You, as the buyer, will own the title of the property and undertake all the mortgage obligations.

Make sure you have proper research on the existing loan and check if there is any due-on-sale clause. In that case, you will not be able to assume a mortgage. Talk to your seller about all the details and then decide if the option is feasible for you.

So, now that you know there are ways in which you can buy apartments in Dubai without making a down payment, you can look for luxury properties in the city to plan for the bestproperty investment in dubai.

 

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