Renowned American financial advisor Suze Orman has addressed one of the most persistent questions in UAE real estate: whether prospective homeowners should delay their purchases in anticipation of falling mortgage rates. In her comprehensive analysis, Orman emphasizes that home buying decisions should be grounded in current financial capabilities rather than speculative rate predictions.
The core principle, according to Orman, centers on affordability rather than timing interest rate movements. She advocates for a conservative approach where total housing expenses—including mortgage payments, insurance, property taxes, and maintenance reserves—should not exceed 30% of one’s income. Crucially, buyers should maintain at least an eight-month emergency fund after accounting for their down payment.
While acknowledging that the UAE’s currency peg to the US dollar means local rates often follow Federal Reserve adjustments, Orman highlights the imperfect synchronization between central bank policies and lender implementations. This lag means that potential savings from future rate cuts could be offset by rising property values in prime locations during the waiting period.
Orman’s guidance extends beyond rate considerations to emphasize structural and financial due diligence on properties themselves. She warns against rushing into purchases simply because financing is available, urging buyers to critically evaluate whether a home’s asking price reflects its true value rather than hidden problems the seller might be attempting to transfer.
The expert outlines a three-part strategy for prospective buyers: first, base decisions on current affordability rather than hopeful projections; second, conduct rigorous stress tests to ensure payment sustainability if rates increase; and third, adopt a long-term perspective focused on lasting security rather than short-term rate advantages.
Ultimately, Orman concludes that the optimal time to purchase property isn’t determined by interest rate fluctuations but by personal financial readiness, stable income circumstances, and thorough evaluation of both the property’s physical condition and its financial implications.