DUBAI off-plan payment plans 📊

Post-Handover Payment Plans & On Handover Payment Plans

1. Post-Handover Payment Plans 📈
A common way to pay for properties is through a post-handover payment plan. As the name implies, post-handover payment allows the buyer to pay after the property in Dubai is handed over to them, which can be anywhere between 3 to 10 years. However, they must pay a portion of the whole sum before they acquire the property.
This type of payment arrangement is mostly aimed at investors seeking properties for rental income in Dubai. It is quite convenient for them because they can take over the property with a nominal down payment and rent it out after the handover. They settle the remaining balance with the rental income.

Benefits of Post-Handover Payment Plans 📈
- The post-handover payment plan has 0% interest.
- Payments can usually be structured on a case-by-case basis within a certain timeframe.
- For the investor, a post-handover plan may provide substantial savings, as part of the rent is used to cover the instalments on the purchase price.

2. On Handover Payment Plans
The most common payment arrangements are separated into percentages paid at various points over the course of the project’s construction, till handover. If you have a 60:40 payment plan, for example, you will pay 60% in instalments based on construction milestones, until the property is handed over i.e. during the construction phase and the remaining 40% when the property is handed over.

The following ratios are frequently observed in this type of payment plan:
- 20:80, wherein you will pay 20% in instalments during construction and the remaining 80% when the property is handed over. You can avail of a mortgage of up to 80% as a UAE resident.
- 40:60, wherein you will pay 40% in instalments until the property is handed over and the remaining 60% when the property is handed over.
- 50:50, wherein you will pay 50% in instalments during construction and the remaining 50% when the property is handed over.
- 60:40, wherein you will pay 60% in instalments until the property is handed over and the remaining 40% when the property is handed over.
These aren’t set ratios; they differ from one developer to the next.

The benefits during construction and handover payment plans are as follows:
This plan bears the least risk for the buyer because the payment is not timed and is totally related to the construction progress.
The Developer is incentivized to complete the project on time in order to maintain a steady cash flow.
Based on the plan you choose, you can easily avail of a mortgage at the time of handover to cover the balance purchase price.