Owning a home is one dream that we all chase and hope to fulfill as early in our lives as possible. It deeply affects our happiness and overall satisfaction with life. Buying a property in Dubai doesn’t demand any special talent. However, there are a certain things that every potential buyer should keep in mind, before making what possibly could be the one of the single biggest investments of his / her life.
Buying Property in Dubai: Few Points to Ponder Upon:
Are you financially ready to buy?
Assessment of your own finances must be at the top of your priority list. Ensure that buying the home will not leave you in the lurch. Do not drain all your savings and have sufficient money to take care of at least a couple of months’ of your day-to-day expenditures. See that your mortgage payment conveniently fits into your monthly budget. Besides the down payment, account for the many random expenses, like Agency Commission, Land Department Fee, Bank Processing Fee, Property Evaluation Fee (in case, you get one done), NOC Charges, Bank / Mortgage Pre-Approval Cost, Move-In Cost, Renovation Cost, etc…
While Buying a Property in Dubai, go for the Right Property in the Right Location
We all have individual preferences and biases. More often than not, we seek some sort of a compatibility and connect with our immediate environment. The location of your home must resonate with most of your wishes and desires, if not all. Do your market research accordingly and shortlist the best location choices. Do not have too many choices in the end, as it will only serve to confuse you and make your analyses efforts more difficult.
Ensure that the location you finalise have easy access to all necessary facilities, like hospitals and shopping malls. Ensure that it is not very far from town and community centres. You must seriously take into account the time spent on commuting.
While buying a property in Dubai, you may also want to stress on a nice view as it could potentially impact the resale value of your house, in case you decide to sell it in the future.
If you are wondering where to live in Dubai, here’s a list of 11 best places.
Off-Plan or Ready to Move Property?
Both sort of properties have their own sets of advantages and disadvantages.
Off-plan properties exist only on paper and take longer to deliver, but they are easier to procure. Off-plan properties are popular among people who are not in a hurry and who would like to pick up the best and choicest units at significantly discounted rates. These are particularly favoured by investors who hope to sell off their homes later at a much higher rate in the secondary market. However, these properties do involve some amount of risk, and the buyer must take necessary precautions to protect his / her investment. It is also not uncommon for projects to get delayed and as such the buyer must remain prepared.
Buying a ready to move property on the other hand, is a quicker option. You get what you see, and can immediately shake off the burden of house rent. However, it is not without its share of troubles. Buying a ready to move house is more expensive and involve more documentation. It may also have an existing mortgage against it.
Checking the Developer / Owner
Whether you buy a ready to move property or decide to go for an off-plan property, you must employ sufficient caution.
If you are making the purchase from a developer, ensure that the developer and the project are registered at the Dubai Land Department. And, if you are buying a ready to move property, you must ensure that the seller is the real owner and that the seller has all necessary rights to sell the property. Also, ensure that the property is free from mortgage and that there aren’t any lease claim on it.
Enlisting the help of a real estate agent
Once you are sure about which house to buy and where, look for the best real estate agents who operate in the area. But in the end, select the best one of the lot. Going with multiple agents may give the impression to the seller that there are several parties interested in the property.
While enlisting the services of an agent, make sure that you check the agent’s broker card. In case of doubts, verify credentials at the Dubai Land Department website.
For expert help and advice, make Aurum-Re your property search partner.
Regulations specified by the UAE Central Bank dictate the amount of finance that one may obtain while buying a property in Dubai.
For properties in the secondary market, you will only be able to borrow up to 75% of the property value from the bank and that is, if you aren’t a UAE national. Emiratis can obtain a loan of up to 80% of the property value. However, the loaned amounts drop down to 60 and 65 percentages respectively, if the property value exceeds 5 million in AED.
If the investment is made on an off-plan property, 50% of the property value is the maximum loan amount that a buyer can obtain.
Getting a Bank / Mortgage Pre-Approval
The seller, more often than not, will not entertain a buyer, who is not pre-approved for financing by a bank. While buying a property in Dubai, it is a good idea to consult the real estate agent to help you decide on a lender.
Transparency of Maintenance Costs
While buying a property in Dubai, there are charges associated with ancillary services (like parking, gym, security, etc.) in a development. Get a clear idea of all such costs, before you proceed ahead with the purchase.