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THE BUYER’S NOTEBOOK

How a 60/40 property payment plan works

A 60/40 label is not a complete payment calendar. First establish what each percentage means in the written offer. Then convert every instalment into an amount and a due date before comparing the plan with your available funds.

By Projects Atlas · Published and sources checked 27 September 2026

Start with the two parts

In the example below, 60% of the purchase price is payable before handover and 40% at handover. This is a teaching example, not a quotation for a listed project. A developer may use a similar label with a different schedule, so the contract and unit-specific payment table must define the stages.

A booking payment may already be included in the first 60%. If a quotation says 10% booking, 50% during construction and 40% at handover, the price totals 100%. Adding a further 10% booking amount would double-count it. Ask for clarification if the written figures do not add up.

Put dates beside the amounts

For an illustrative AED 1,000,000 home, the first 60% is AED 600,000 and the final 40% is AED 400,000. The table groups construction payments to make the arithmetic clear; a real schedule needs each individual date or milestone.

Suppose a second offer has the same percentages but asks for the construction share sooner. The two labels look identical, yet your cash requirements differ. Compare the payment calendars side by side and include the amount you must have available at the busiest point.

Illustrative AED 1,000,000 purchase — all fees excluded
StageShare of property priceAmount
Booking, included in the first 60%10%AED 100,000
During construction, grouped here50%AED 500,000
At handover40%AED 400,000
Total purchase price100%AED 1,000,000

At handover is different from after handover

If the written offer puts 40% at handover, the balance is not automatically spread over the following years. A post-handover arrangement must explicitly specify later due dates. Do not infer it from a salesperson’s use of the phrase “flexible plan.”

For a separate teaching example, 40 monthly payments of 1% of the original AED 1,000,000 price would be AED 10,000 each, totalling AED 400,000. That differs from 1% of a reducing balance. This example excludes fees and does not describe an available offer.

Keep a separate cost and currency worksheet

The purchase-price split does not represent the entire cost of ownership. Ask for an itemised schedule covering applicable registration, administration, financing, furnishing and recurring building costs. Confirm which charges apply to the actual purchase rather than assuming a universal fee package.

If you earn or hold savings in CAD or USD but owe AED, calculate each payment using a current transfer-provider quote. Exchange-rate movement can change the home-currency amount needed. FINRA explains this currency risk; a favourable rate today should not be assumed for every future instalment.

Reference: FINRA: Currency Risk — Why It Matters to You ↗

Check the funding plan before reserving

Write down the source of funds for every payment. Identify any amount dependent on a future loan, sale or rental receipt, then test whether you could still complete if it arrived late or was unavailable. A payment calculator helps with arithmetic; it does not approve financing or assess affordability.

Use the project-page calculator with the terms for your chosen unit. Where published schedules are incomplete, historical or conflicting, enter the confirmed figures yourself. Keep the dated quotation and ask a qualified independent adviser to review commitments you do not fully understand.

  • Does booking count toward the price, and is it refundable under the written terms?
  • Are instalments triggered by fixed dates or verified construction milestones?
  • Exactly when is the final balance due, and what are the contractual consequences of delay?

Sources and scope

This is an educational guide, not personalised financial or legal advice. Worked examples are illustrative. Official facts are linked below; comparison questions and worksheets are Projects Atlas editorial guidance. Use qualified independent advisers for a particular purchase.

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