Zaigham Burney and his wife Amun were keen to get on the UAE property ladder before rising prices made that first step even more expensive.
But they were also determined to protect themselves against the chance of an early interest rate hike.
So when the married couple – originally from Pakistan but with roots in Canada and the United States – bought an apartment in Motor City, Dubai, last August, they decided to pay a little extra for the protection of a fixed rate, says Mr Burney, 26, who has lived in Dubai for four years and works as a financial analyst.
After comparing mortgages across the market on the price comparison site Souqalmal.com, they opted for a two-year fix. “Our plan was to see where the housing market would go over the next couple of years, then make a decision either to sell and move up the ladder or buy a second property.”
Mr Burney believes the UAE property market is strong enough to withstand a rise in interest rates. “We were confident that the real estate market would continue to strengthen and wanted to buy before prices became higher still.”
But Mrs Burney, 26, who works as an investment lawyer, says the couple still didn’t overstretch themselves. “We can safely cover our monthly mortgage payments from our salaries, even if they rise after our two-year fix comes to an end.”
business@thenational.ae
Follow us on Twitter @Ind_Insights