Owning a house can turn into a sour investment for some homebuyers: Here’s when

Owning a house can turn into a sour investment for some homebuyers: Here’s when

Dubai: Beyond the obvious benefits of having a place to call your own and reside for the long-term, homeownership is known for the profit perks that come with it being a worthwhile investment. But UAE real estate experts warn that owning a house can sometimes turn into a sour investment.

“Depending on the price you pay for your home, and the appreciation rate you get when you plan on selling it, you could end up with a negative return on your investment, among other factors,” suggested Stephanie Myrtle, vice president of a Dubai-based real estate research firm.

“As banks finance a home purchase more favourably than any other business investment, you can use your primary property as an investment and bump up your potential returns. Unlike a small business or purchasing securities, you can get a home loan at a 20 per cent down payment.”

When you take a home loan, banks give a maximum of 80 per cent of the property’s value as a home loan, with the rest 20 per cent being raised on your own. Once the bank starts loan disbursement once your down payment is paid, you’re on your way to an easy investment, or so