Post-handover payment plan in Dubai

The post-handover payment plan is a popular method of payment for buying a property in Dubai. It allows buyers to make payments in installments after taking possession of the property. In this article, we will discuss what a post-handover payment plan is, how it works, and its advantages and disadvantages.

What is a Post-Handover Payment Plan?

A post-handover payment plan is a payment schedule that allows buyers to pay for their property after taking possession of it. In this plan, buyers are required to make a down payment of a certain percentage of the property's value upon signing the contract. After the property is handed over, buyers can make payments in installments over a specified period of time, typically between one and five years. The exact payment schedule and the number of installments vary depending on the developer and the project.

How Does a Post-Handover Payment Plan Work?

The post-handover payment plan is usually offered by developers for off-plan properties. Buyers can choose to pay the full amount upfront or opt for a payment plan that suits their budget. In this payment plan, the buyer is required to pay a certain percentage of the property's value as a down payment upon signing the contract. The remaining amount is paid in installments over a specified period of time after taking possession of the property.
For example, let's assume that the total value of the property is AED 1 million, and the buyer opts for a post-handover payment plan. The buyer will be required to pay a down payment of AED 200,000 upon signing the contract. After taking possession of the property, the buyer can pay the remaining AED 800,000 in installments over a specified period of time, say five years. The payment schedule and the number of installments will depend on the developer and the project.

Advantages of a Post-Handover Payment Plan

The post-handover payment plan has several advantages for buyers. Some of these include:

• Flexibility:

  
  

  One of the main advantages of a post-handover payment plan is that it offers flexibility in terms of payment. Buyers can choose a payment plan that suits their budget and financial situation.




• Lower initial investment:

  
  Buyers who opt for a post-handover payment plan are only required to pay a certain percentage of the property's value as a down payment. This makes it easier for buyers to invest in a property without having to make a large initial investment.



• Peace of mind:

  
  With a post-handover payment plan, buyers can take possession of their property and start using it while making payments in installments. This gives buyers peace of mind knowing that they have secured their property and can pay for it at a pace that suits them.



• Attractive pricing:

  
  Developers often offer attractive pricing for properties that come with a post-handover payment plan. This is because they want to attract buyers who may not be able to afford to pay the full amount upfront.

Disadvantages of a Post-Handover Payment Plan

While the post-handover payment plan has several advantages, it also has some disadvantages. Some of these include:

• Higher overall cost:

  
  Buyers who opt for a post-handover payment plan may end up paying more for the property in the long run. This is because developers may charge higher prices for properties that come with a post-handover payment plan.



• Longer payment period:

  
  A post-handover payment plan typically extends the payment period over several years. This means that buyers will be paying for their property over a longer period of time, which may not be suitable for everyone.



• Risk of delayed payments:

  
  There is a risk that buyers may miss their installment payments or delay them, which could result in penalties and extra charges.

How we can help

If you're interested in mortgage schemes in the UAE, Lenddoo can help you explore a range of payment scenarios that suit your financial needs and can help you finance your handover payments.
You can also use our mortgage calculator to estimate your payment schedule and rental profit. Lenddoo’s team of experts is available to guide you through the entire process, so don't hesitate to contact them or get started on our website.