Benefits of 25/75 Payment Plan by Modon!

Buying an off-plan property is not only about the purchase price.

The payment plan can have an equally important impact on how much capital a buyer needs, when that capital is required, and how comfortably the investment can be managed over several years.

MODON’s 25/75 payment structure offers buyers a different approach.

Instead of requiring the buyer to fund the majority of the property price during construction, the plan allows 75% of the property value to be financed through ADIB, while the buyer contributes 25% through scheduled payments.

This can make a high-value property easier to manage from a cash-flow perspective, particularly for buyers who want to preserve liquidity during the construction period.

What Is the MODON Wadeem Gardens 25/75 Payment Plan?

The structure can be understood as:

• 25% – Paid by the buyer
• 75% – Financed by ADIB

On Modon Wadeen Gardens payment plan, the buyer’s 25% contribution is spread across several milestones rather than being required upfront.

The detailed payment schedule is:

The important distinction is that the buyer’s direct contribution totals 25%:

5% + 5% + 5% + 5% + 5% = 25%

The remaining 75% is structured through ADIB financing:

20% + 55% = 75%

This means the payment plan is not simply a traditional construction-linked plan. A large portion of the purchase price is shifted into bank financing, including a substantial amount after completion.

How Does the 25/75 Structure Work?

Consider a property priced at AED 2 million.

Under the 25/75 structure, the buyer’s total contribution would be AED 500,000, while AED 1.5 million would be financed through ADIB, subject to the applicable financing terms and approval.

The cash-flow structure would look approximately like this:

The Biggest Benefit: Lower Initial Capital Requirement

One of the biggest attractions of the plan is that the buyer does not need to fund 100% of the property price from personal capital during the construction period.

The first four scheduled buyer payments total only 20%:

• 5% on reservation
• 5% in June 2027
• 5% in December 2027
• 5% in June 2028

The final 5% of the buyer’s contribution is scheduled at completion in October 2030.

This creates a much more gradual capital requirement.

For investors, that can be important.

Instead of putting a large amount of money into one property immediately, the buyer can spread the equity contribution across several years.

More Capital Remains Available During Construction

Liquidity is one of the most important considerations when buying off-plan property.

A buyer who puts a large percentage of their capital into one property may have less money available for:

• Other investments
• Business opportunities
• Emergency reserves
• Education or family expenses
• Additional property purchases
• Stocks and other financial assets
• Future investment opportunities

The MODON 25/75 structure can reduce the amount of personal capital required during the early stages of the investment.

This does not make the property cheaper.

It changes when and how the property is funded.

That distinction is important.

A Long Construction Timeline Can Help With Financial Planning

The scheduled buyer payments extend from the reservation stage through completion.

The timeline includes:

Reservation → June 2027 → December 2027 → June 2028 → October 2030 → April 2031

This gives buyers a longer period to plan their capital requirements.

For someone with income, business cash flow or investments generating liquidity over time, a staged payment structure can be easier to manage than a large upfront payment.

It also provides greater visibility.

The buyer knows when the scheduled 5% payments are expected and can plan accordingly.

The 5% Reservation Payment Keeps the Entry Point Relatively Low

The initial payment is 5% on reservation.

For a AED 2 million property, that would represent AED 100,000.

For a AED 3 million property, it would be AED 150,000.

For a AED 5 million property, it would be AED 250,000.

This can make the initial commitment more manageable compared with payment structures requiring 10%, 20% or more at booking.

However, buyers should also budget separately for applicable transaction costs, registration fees and other purchase-related expenses.

The Buyer Pays Only 25% Directly

This is the central feature of the plan.

The buyer’s direct contribution is:

25% of the property value.

The remaining:

75% is financed through ADIB.

For an investor, this can potentially create a more efficient use of capital.

For example, a buyer with AED 500,000 available for the property could potentially target a AED 2 million purchase under a 25% equity structure, subject to financing approval and all applicable conditions.

This is fundamentally different from needing AED 1 million or AED 1.5 million in personal capital before the property can be acquired.

Of course, financing approval depends on the buyer’s financial profile, income, nationality/residency status, debt obligations, property eligibility and the bank’s lending criteria.

The 20% ADIB Component During Construction

The plan includes 20% through ADIB during construction.

This is significant because it means the buyer’s personal contribution is not responsible for funding the entire construction-stage purchase price.

The buyer has already contributed 20% through the four scheduled 5% payments by Month 20.

The financing component then covers another 20% during construction.

This creates a clear division between the buyer’s equity contribution and the bank-financed portion.

Only 5% of the Buyer Contribution Is Scheduled at Completion

Another feature of the structure is the relatively small final direct payment.

At Month 48, around October 2030, the property reaches the completion milestone and the buyer pays the final 5% of their direct contribution.

By this point, the buyer will have already paid:

20% before completion + 5% at completion = 25% total buyer contribution.

This means the buyer does not face a large personal cash payment at completion.

That can be particularly useful when compared with payment plans that require buyers to pay 30%, 40%, 50% or more at handover.

The 55% ADIB Component Extends to Month 54

The final component is especially important.

A further 55% is financed through ADIB, with the schedule extending to Month 54 — April 2031.

This means the payment structure extends beyond the completion milestone.

For investors, that can provide additional time to organize long-term financing and manage the investment after the property reaches completion, subject to the agreed financing arrangement.

It also means the buyer is not required to provide the majority of the purchase price in cash at handover.

Why This Can Be Attractive for Investors

For an investor, the payment plan can be viewed as a capital-management tool.

The investment case is not simply:

How much does the property cost?

It is also:

How much capital do I need today, how much will I need later, and how can I use my remaining capital during the construction period?

A 25/75 structure can help answer these questions.

The buyer commits 5% initially, makes further 5% payments over time, contributes another 5% at completion and uses ADIB financing for the remaining 75%.

This can potentially allow the investor to maintain liquidity while gaining exposure to the property.

Example: AED 3 Million Property

Consider a property priced at AED 3 million.

The 25% buyer contribution would be:

AED 750,000

The 75% ADIB-financed portion would be:

AED 2.25 million

The buyer’s scheduled payments would approximately be:

• AED 150,000 – Reservation
• AED 150,000 -June 2027
• AED 150,000 – December 2027
• AED 150,000 – June 2028
• AED 600,000 – ADIB financing during construction
• AED 150,000 – October 2030 completion
• AED 1.65 million — ADIB financing through April 2031

The important point is that the buyer’s total direct contribution remains AED 750,000, rather than AED 3 million.

Potential Benefit for Capital Preservation

Capital preservation is particularly important for investors purchasing premium property.

An investor may not want to deploy their entire available cash balance into a single asset.

A 25% equity requirement can potentially leave more capital available for other opportunities.

For example, an investor could potentially allocate remaining capital toward:

• Another property
• A business
• Financial investments
• Renovation or furnishing
• Future investment opportunities
• Cash reserves

The benefit depends on the investor’s individual financial position and the cost of financing.

If the cost of financing is high, retaining capital elsewhere may not necessarily produce a better return.

Therefore, the financing cost should always be compared with the expected return on the capital that remains available.

Potential Benefit for End Users

The payment plan is not only relevant to investors.

End users may also benefit from a structured approach to purchasing.

A buyer planning to move into the property can make the scheduled payments over the construction period while arranging long-term financing for the larger balance.

This can make financial planning more predictable.

The key is to ensure that the future financing obligation remains affordable.

A payment plan should never be assessed only on the initial 5% payment.

The buyer must understand the full financing commitment.

The Plan Can Improve Cash-Flow Visibility

Another advantage is predictability.

The buyer knows the major milestones in advance:

5% → 5% → 5% → 5% → financing → 5% → financing

This makes it easier to build a long-term cash-flow plan.

For investors, this can be particularly useful when the purchase is being funded through a combination of salary, business income, existing investments and future financing.

The longer timeline provides an opportunity to prepare for each milestone instead of reacting to large unexpected payments.

The Important Difference Between 25/75 and a Traditional Payment Plan

A conventional off-plan payment plan may require the buyer to progressively pay a large percentage of the property price during construction.

For example, a buyer could be required to reach 50%, 60% or 70% before handover.

The MODON structure is different.

The buyer’s direct contribution is limited to 25%, while the remaining 75% is structured through ADIB financing.

That changes the buyer’s capital requirement considerably.

The advantage is therefore primarily about cash-flow management and financing structure, not a reduction in the property’s purchase price.

Financing Cost Still Matters

The 25/75 structure should not be interpreted as 75% of the property being free or deferred without cost.

The ADIB financing will have its own terms and associated financing costs.

Buyers should evaluate:

• Financing/profit rate
• Financing tenure
• Monthly repayment
• Total repayment amount
• Early settlement conditions
• Eligibility requirements
• Valuation requirements
• Applicable bank fees
• Insurance or takaful requirements, where applicable

A buyer should compare the total cost of ownership rather than looking only at the percentage financed.

The Main Advantage: Leverage With a Structured Timeline

The biggest attraction of the MODON 25/75 payment plan is the combination of lower upfront equity and long-term financing.

The buyer does not need to provide the full property value in cash.

Instead, the buyer contributes 25% over time, while 75% is financed through ADIB.

This can potentially make premium property more accessible to buyers who have strong income or financial capacity but prefer not to lock up a large amount of capital immediately.

For investors, this can also create an opportunity to use capital more efficiently.

However, leverage works both ways.

If property values rise and rental income performs well, financing can enhance the efficiency of the investor’s capital.

If the property underperforms or financing costs become burdensome, the same leverage can increase financial pressure.

Final Takeaway

MODON’s 25/75 payment structure offers a different way to approach off-plan property investment.

The buyer pays:

5% on reservation

5% in June 2027

5% in December 2027

5% in June 2028

5% at completion in October 2030

That adds up to 25% of the property price.

The remaining 75% is structured through ADIB financing, with 20% during construction and a further 55% extending to April 2031.

For buyers, the main benefit is not simply the low initial payment.

It is the ability to spread the personal capital contribution over time while financing the majority of the property value.

For investors, this can help preserve liquidity and potentially allow capital to remain available for other opportunities.

But the plan should always be assessed alongside the property’s price, location, rental potential, service charges, financing cost and long-term resale prospects.

Ultimately, a good payment plan can make a property easier to finance.

It cannot, by itself, make a bad property a good investment.

The strongest opportunity is where the property fundamentals, location, pricing, future demand and 25/75 financing structure all work together.