Forward Planning: Don't miss the train - buy your dream apartment

The biggest and most important investment you will ever make is that of your home. When you pay rent, you are actually handing over your money to others and you probably have been doing so for some time without giving it much of a second thought.

But remember that other than long-time saving, taking a loan and purchasing your own home is the first step towards paying yourself and your family.

Imagine living in the Emirates, renting an apartment for ten years, paying an average of Dh45,000 a year. This results in giving away more than Dh 600,000 of which nothing ever comes back to you.

Expatriates used to complain about not being able to own real estate property in the Emirates but today things have changed and dwellings one can own exist in many types, sizes, shapes, locations and prices.

No more excuses for not owning. Of course there are many reasons why people still hesitate - uncertainty and fear of the unknown is one as many people are still not sure if they are going to be here tomorrow.

Many procrastinate, just waiting to see what will happen. But looking at the world today, the Emirates and especially Dubai, chances are that most of us will be here for a long time.

Best saving vehicle

Our positive involvement within the local economy starts by circulating part of our income back into the country so why not, at the same time, build our own equities. Owning real estate properties increases our collateral and net worth. If you own your house or apartment, you could mortgage it one day and use the money to purchase another real estate property or start your own business.

Today if you are renting you may have some money in the bank if you are careful with your spending but still don't have much to show for.

A bank will listen to you if you own property. The best saving vehicle is putting 15 per cent to 20 per cent of our income back into our pocket through a home loan. A few years after buying your first property, you may put a down payment for a second one and rent it which will pay for the loan.

When it's time to retire you will have several paid up real estate properties that you fully own, generating a comfortable income.

You can own properties in many countries all over the world but if you compare these places not many offer what you find here - security, a comfortable living, affordability, leisure, safety and people from many nationalities living in harmony.

Right time

It may sound like I am running a commercial and in some way I am because now is the right time to buy property.

There are many choices and the latest of new real estate properties offer multiple facilities in the middle of fully developed surroundings with shopping centres, cinemas, restaurants, and many other practical as well as leisure installations.

Still most people are acting like outsiders, waiting to see what's going to happen and refusing to make Dubai or the UAE their home.

One foot in and one foot out is not a wise strategy. Analyse your financial situation, observe your surroundings, study your options, establish an action plan and act so as to finally have both feet in. Properties sold at the prices of Dh350,000, 400,000, 600,0-00 are quite affordable for someone who pays Dh35,0-00 in average rent annually.

The latest statistical survey of Dubai conducted by the Dubai Municipality for the year 2000 puts the number of households living in the emirate at 151,386.

Among them, 96,519 are renting with an average rent per family of Dh23,500 and about 22,322 belong to the Dh30,000 rent band and above.

Of the same households group, 17,844 live in flats and 3,756 in villas. So, more than 22,000 households are now capable of becoming home-owners.

The total population of the emirate of Dubai in the year 2000 was 862,387 which has increased by the latest estimate to 1.3 million people.

As for nationals, many young bachelors or even married couples are still living in their parent's home or renting. These young people now have a golden opportunity to acquire and own their dream homes.

The question is simple. Are we going to miss the train and lose this great chance or take the positive first steps toward financial independence?

The author is a UAE-based insurance consultant and director of Gulf Insurance Consulting.