Buying a new apartment or villa before it is built is an exciting opportunity. It lets you secure a property at a good price. A key part of this process is the payment plan. Knowing how these plans work is the first step to a smart purchase.
How payment plans work
A payment plan for a buy off plan Dubai property is a schedule for paying the property’s price. You do not pay the full amount at once. Instead, you pay in smaller parts over time. These payments are linked to the construction progress. You might pay a small amount to book the property. Then, you pay more when the building’s structure is complete. The final payment is often made when you get the keys.
Look for a post-handover plan
The best payment plans are those that continue after you receive the property. This is called a post-handover plan. It means you can pay a part of the price even after you move in. This type of plan makes things much easier on your budget. It gives you extra time to manage your finances without pressure.
Check the construction link
Your payments should match the builder’s progress. A good plan has clear milestones. For example, you pay a certain percentage when the foundation is done, and another when the building is fully built. This fairness protects you. It ensures the developer is earning the payments as they complete the work.
Understand your payment schedule
Before you sign, you must understand the payment calendar. Know the exact dates or construction stages that trigger a payment. Mark these dates in your calendar. This helps you plan your finances and avoid missing a payment, which could lead to penalties.
Know the security provided
Your money should be safe. In Dubai, developers must place your payments in a special protected account. This account is controlled by the authorities. The money can only be used to build that specific project. This system prevents misuse of funds and helps ensure the project is completed.
Read the contract carefully
The contract has all the details. Read every line. Ensure the payment plan described in the brochure is exactly what is written in the contract. Look for any hidden fees or clauses about late payments. If anything is unclear, ask questions. Do not sign until you are completely comfortable with all the terms.
