A developer has introduced off plan properties whereby an investor can pay 20% up front and 80% of the purchase price upon completion. I do not have the amount to pay for the 80% upon completion, however, I can afford to pay the reservation fee of 20%. Should I purchase the property in Abu Dhabi?

Answer:


Your bank will not provide you with a mortgage if you do not have 50% of the property amount paid in cash. Having said that, you should treat off plan properties as a high risk investment because you are not in control of when the project will be finished. Moreover, your bank will keep charging you interest on your mortgage even if the project is delayed.
 
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