Developers of real estate globally come with innovative
ways in structuring real estate deals. For them payment plan is the major
business strategy stool. Dubai real estate developers are the pioneering lots
in this field as this blog post proves:
Danube Group,
a premier property developer in Dubai priding itself as receptive to changes in
the business environment, introduced bomb-shell innovative business tactics. Pay 1% of the value of real estate
on monthly basis and that is it. You can move into one of their
affordable apartments. This, so far is the most innovative buyer incentive
recorded in the entire history of Dubai realty.
Danube group is not alone in visualizing ground
shaking business tactics. Emarr
Group, an international realty developer has something new to offer to its
Dubai clients. They do it in two ways: For off-plan properties the payments are
back-loaded so that initial cash outlay by buyers is less. For readily
occupiable villas, payments are structured as post-handover, once again to suit
the purse of buyers.
In Dubai we find payment plans for apartments
taking different
mutations. While most of these specify standard rate or amount, the
duration can be variable stretching from 3 to as high as 20 years. And there
are non-standard flexible plans where payment amount differs from quarter to
quarter to accommodate anticipated seasonal expenses of the buyers during school
opening and year-end seasons.
There are negatives too. Payment plans are
expensive at the end of contract period as the loading of interest factor jacks up the cost. Buyers
would lose out on the price side as worn-out apartments would fetch much less
in comparison to newly built ones.
Most real estate developers shun payment plans
because these dampen the value of property that is sold for one-off cash
payment. It also conveys the impression that the developer is financially weak and tries to un-load
excess units. Third and most damaging aspect is that, the payment plan instead
of stabilizing realty market places it in unstable zone.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
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