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How to Buy an Apartment in the Palm Jumeirah Dubai?

Palm Jumeirah Dubai

Are you purchasing a home for yourself for the first time? Or are you looking towards buying one in Palm Jumeirah Villas? But, sadly, you do not have the right amount of cash for it and might run short. Despite that, you aim towards following your dream of owning a property in the area. Other than that, you may also not have much experience when it comes to real estate at the Palm Jumeirah, Dubai and how you can avoid a pitfall. Hence, we have compiled a few useful tips that can be of help.


How to purchase a Villa in Palm Jumeirah?

Obviously, it can cost you a fortune to buy an apartment in Palm Jumeirah. But, it is possible if you have the perfect blend of expertise, idea and innovation. You can buy your own apartment with someone else’s money and here is how!


Leverage on Hard Money

Hard money creditors are privately run entities that lend money for the development of properties, especially for the cost of apartments. Although they can be harsh in the beginning considering their minimum requirements, you can be able to get the total required price for The Palm, if it is the right investment that appears to be enough. It doesn’t matter if you expect double the price when you sell the apartment, however, make sure that your expectations are realistic according to the market prices.


Equity on Current Home

If you don’t have the finances, in the form of cash to buy a villa at the Palm, you can utilize the equity on your present home to get a loan from financial institutions to buy a villa of your choice. These kinds of loans are known as home equity loans, and their interest is either fixed or variable. The rates are usually higher with fixed rates, while the rates of variable interest are kept low. However, they can change at any time. Moreover, this is a cheap way of sourcing money to purchase the Palm Jumeirah Dubai villas. You can also get interest from the taxes.


Find a Private Lender

Apart from the hard money creditors, you can take a loan from individuals who look forward to get a higher return compared to what they have invested. You can buy an apartment with this money and then return the debt with a profit. Most of the lenders prefer getting a profit between 12 to 20 per cent and if you cannot make the payment, they hold the property for you. This works in the form of a guarantee and benefit for both the parties.


Lease Substitute

Another way of buying an apartment when you don’t have the money is to adopt the option of the lease. It is a technique through which you can buy the apartment from the landlords without becoming the legal owner. Instead, you can be a part of a long-term lease with the homeowner. Moreover, it will enable you to buy the villa at the price agreed later on and the homeowner will not be able to sell it to someone else either. Till the period expires.


Buy “Subject-to” Villas

Using a “subject-to” approach while purchasing a villa in Dubai Palm deals with giving the title documents from the owners of the home to you without the need to refund the initial mortgage that was owned by the former homeowners. Though the idea of being owed is not taken positively by the financial institutions, as long as you deposit money to the bank on a monthly basis, you will be covered. However, this approach can be a risk, but it can be good enough as well, as an alternative.


Combination of Approaches

Another way to get funds for purchasing an apartment in The Palm is by combining and matching any of the above-stated options. For example, you can borrow money from a creditor and partner it with a real estate investor in order to fund the mortgage after the repairs have been effective. Otherwise, you can combine the option of lease and still source the funds from a private borrower.


Existing Property Leverage

You can also leverage on another property that is owned by you. If you own another property in the UAE or somewhere else that does not have any mortgage, you can release equity and refinance to pay for the down payment. This is a very useful way to make an investment work.

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