Many people may consider owning a property as a lifelong dream, but acquiring a home is much more complicated and requires careful preparation and study before making the purchase. Residential plots, apartments, single-story homes, detached houses, and multi-story apartments are among the different types of residences available.
Do you intend to purchase a house in Dubai? If so, there are a few things to think about while making plans for this. This post provides a comprehensive list of considerations that you should make before purchasing flats in this exceptional emirate.
The Top 9 Things to Look for When Purchasing a Home in Dubai
Making a list is the greatest way to make sure you don’t miss anything, which is why we’ve compiled the top 9 things to think about when purchasing a flat in Dubai. This will keep it easy and beneficial for you.
Ownership Duration (Tenure)
However, you can make those tougher investment decisions by trying to ask some self-sought questions to make clear your sight, for instance: you have lived in Dubai for so long? And how much longer do you see yourself spending here?
Answers to these questions are very important to take into consideration before making a house purchase in Dubai; if your answer is indecisive about your long-term plans, or that you stay in this country, renting might come as a very viable option for you.
Cost-effectiveness
A worldwide standard that aids in defining affordability is that your monthly housing costs shouldn’t surpass thirty percent of your take-home pay. Budgeting for upfront costs, which are around 7 to 8% of the purchase price, is also essential.
As a homeowner, you will have to incur maintenance costs in addition to the yearly service fees.
A summary of some of the requirements for the purchase of real estate within Dubai is given below.
- Fees to the Dubai Land Department: 4% of the total cost of the property
- AED 580 is the administration cost.
- AED 2000 + 5% VAT is the property registration charge; for properties under AED 500,000, it is AED 4,000 + 5% VAT. For real estate worth more than AED 500,000
- 2% of the buying price plus 5% VAT is the real estate agent charge.
- 1% of the loan amount plus 5% VAT is the bank mortgage arrangement cost.
- The mortgage registration charge for the Dubai Land Department is AED 290 plus 0.25% of the loan amount
- Real estate Between AED 2,500 and AED 3,500 plus 5% VAT is the valuation cost.
Additionally, you will be responsible for paying the Dubai Land Department’s annual maintenance fees, which are determined by the RERA Service Charge and Maintenance Index.
This index varies by community and establishes a precise fee per square foot. Additionally, the DLD’s website provides you with the most recent costs.
Savings
Before buying a new house in Dubai, the most essential of the things to consider is the down payment. Under regulations from the UAE Central Bank, properties valued less than AED 5 million will have to have a minimum deposit of:
- 25% of the buying price for foreigners
- 20% of the buying price for UAE citizens
Furthermore, your down payment must come from your own resources and cannot be financed by a personal loan from a nearby bank.
Well, in accordance with the process for purchasing real estate in Dubai, an upfront personal loan could be used to pay for transaction costs, agency fees, and bank charges.
Visa for Residence in Real Estate
For expats wanting to buy property in Dubai, it is all about the rules and regulations related to the real estate residency visa. That is what the UAE government calls the Golden Visa.
This kind of residency visa allows you to stay for three years, or five to ten years, depending on how much the property is worth. Owning a property in Dubai is therefore one option to take advantage of a prolonged stay there.
Location
Locating appropriate accommodation is vital among several factors to put into consideration while seeking a house to buy in Dubai. Such conveniences include proximity to schools, common facilities, and most importantly, a place of work.
The next thing is to gauge how long you usually have to travel from here to your daily destinations, activities, and amenities; that pretty much determines whether this place is right for you.
Size of the Property
Without question, one of the most important factors you consider when selecting a new home is its size. Planning and thinking ahead is always preferable.
A large house is therefore a perfect choice, for instance, if you want to marry soon, have children, or have some family members joining you.
Alternatively, if you live alone or have a small family, you can choose smaller flats to avoid paying for unnecessary items.
Superior Quality
The building’s construction history should be taken into account while purchasing a property. This is particularly true if you want to purchase a secondary property—one in which you are not the original owner.
Remember to inspect the unit’s general condition as well as the maintenance and remodelling projects.
Additionally, if you’re searching for an off-plan solution, make sure you examine the developer’s reputation for quality work and timeliness.
Conditions of the Market
It’s wise and crucial to research the state of the market and the place you’ve selected before making your final choice. This can help you choose the ideal time to purchase and the return on investment in this neighbourhood should you decide to rent it out later.
conclusion
Owning real estate in Dubai, a city of dreams, allows you to realize your aspirations. Dubai real estate is a secure and wise investment because of its thriving economy, first-rate infrastructure, and unmatched lifestyle.
Because it covers important topics, this in-depth guide to Dubai real estate has tried to provide you the knowledge you need to effectively navigate the real estate market.
In the centre of Dubai, embark on this fulfilling path as a property owner. Driven Properties is the first stop on your path to real estate ownership in Dubai.
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