Buying a house is like a dream come true, but it is not as easy as you think. The actual procedure of buying a house is a nightmare for people. One has to select the property and then check if it fulfills all the requirements or not. And after this selection, there comes a main point, which is the payment. Not all developers follow a flexible payment schedule. Many of them follow a strict payment schedule, but with Danube, you can avail the famous 1% Payment Plan by Danube Properties. We know that might sound too good to be true, but it is the truth. Today, our blog will tell you the details about this innovative 1% scheme by the Danube.
Overview of 1% payment plan
With the 1% payment plan, you can purchase a home in Dubai for just 1% of the total cost each month. This suggests that there are no exorbitant fees or interest rates, nor is a sizable down payment required.
Until you own the entire property, you only pay 1% of it each month. As an instance, when you decide to invest in a million-dirham property, you are likely required to deposit 10k dirham per month for 100 months, which is approximately eight years. Much better than paying a 25-year mortgage interest rate of 3% per month (AED 3,735) and 25% (AED 250,000).
Operating of 1% payment plan
To attract more buyers and investors to their projects, some developers in Dubai provide a 1% payment plan. Typically, they collaborate with a bank or other financial organization that provides funding for purchases. For its off-plan projects, Danube Properties usually provides a convenient 1% payment plan. The latest addition to their residential lineup is Oasiz 1 by Danube, located in Dubai Silicon Oasis, where you can also take advantage of the 1% payment plan.
A buyer agrees to pay 1% of the ownership each month in a contract they sign with the bank and the developer. The buyers feel more secure and have more flexibility after they receive the title deed after paying half of the property’s price. But this percentage rate is not fixed; it varies from one builder to another. There are some builders in Dubai charging 20 to 25% for the title deeds.
This situation is completely different from the rent-to-own situation, in that situation, you will have to pay rent on the property, and then if you plan to buy it, you can begin with the EMIs later on. But if we talk about this 1% payment plan, then you pay 1% of the house price every month.
How to calculate a 1% price?
Calculating the 1% rule is simple. Just multiply the property’s purchase price by 1%. Put the purchase price’s comma two lines to the right. Rent should be at least what the result shows each month.
Additionally, you should multiply the price of the house by 1% and include the cost of any necessary repairs.
Final Thoughts!
By lowering the upfront costs of purchasing a home, the 1% payment plan has completely transformed the real estate market. It eliminates one of the biggest barriers to accumulating long-term wealth through real estate for both investors and homeowners. This creative financing structure has increased access and opportunities for many more people to benefit from real estate ownership in Dubai, although it necessitates careful financial planning. The 1% rule continues to empower new investors and buyers worldwide with careful planning and budgeting.