The following are varied exceptional factors that you should carefully examine before investing your hard-earned money such as:
1. Recognize your objective
It is mandatory for people to recognize their motive behind investing a large amount in a particular property in which they are interested. This will help them to identify the type of property they buy.
You need to think about certain things, for instance, whether you are an investor, the amount of return on investment you are anticipating etc.
As a result, you get several factors shortlisted that will determine for you whether an off-plan property will be a righteous choice for you, how much area to choose, the proportion of investment, etc.
2. Indulge In A Thorough Research
It’s extraordinarily crucial to do rigorous research and evaluate the market before buying a property, experts say.
Always consider all the factors such as:
- Determining the rental yields you are expecting out of a property
- Whether or not the area is in demand and its future prospects
How developed and acclaimed your neighborhood is and about the utilities.
After determining all such important factors, Set a budget for yourself and do your analysis on the kind of units that are available, the prices of the property as well as the different payment plans that are being offered.
Finally, choose the property that clicks to you and that stands all your necessities and wants.
3. Freehold or Non-Freehold
The Dubai government has large parts of Dubai that have been nominated as freehold areas . It includes the prospects where foreign buyers can own the property entirely.
Although, there are several prevailing non-freehold zones that are open for purchase only to GCC nationals.
However, in recent years, pockets of non-freehold areas have evolved and are now open for purchase to all nationalities.
4. Synchronization Of Finances In Order
All first-time buyers should know that along with the deposit fee come an affiliation of different fees such as:
- Transfer fees,
- Agency fees,
- Sales progression fees,
- Mortgage arrangement fees,
- Mortgage insurance fees
People need to take note of this before making their purchase and calculating their return on investment in a property in the Emirates.
Consult A Mortgage Adviser
You should take a mortgage adviser for all the necessary information as they can give you detailed information about all the costs that are involved in buying your first property in Dubai.
The Fees which are linked to the transaction are paid majorly by the buyer and add up to between 6 percent and 7 percent of the purchase price
DLD fee = 4% of the purchase price, though you are supposed to pay 0.25 percent of the loan amount if you are opting for a mortgage,
When it comes to the broker, he will charge 2 percent, unless you are planning to buy an off-plan where your developer will pay your broker, and you might pay additional professional fees to a mortgage broker.
The great news about investing in UAE property is that there are no capital gains, property, or income taxes which eventually saves a lot of money and yields greater returns.
5. Recognize Operational Costs
It is vital to evaluate the operational cost involved in the project as you do a thorough analysis and shortlist different property options in the UAE. Such costs include service charges and maintenance fees, though it varies depending on the type of property you are buying.
You will be amazed to know that villas and townhouses have lower maintenance and service charges in comparison to an apartment in Dubai.
The charges depend upon the location of the area, its neighborhood, utilities, and additional services being offered in that development.
Basically, these operational costs are attached in addition to the property value and are charged on an annual basis.
6. Work With A Licensed Broker
It is vital for all buyers to work with a knowledgeable broker who has a reputable image in the market and specializes in this segment.
They will ensure all the rights and investments of buyers are protected while they are looking for a property.
You should make sure that you check your broker's registration number (BRN) as it means that they are certified by the Real Estate Regulatory Agency.
As a buyer, you want to be sure that the information you are being provided about the market and the pricing is absolutely accurate and genuine. Agents who are Rera-qualified have the entire access to data from the Dubai Land Department.
It is important that for such a huge investment you are choosing an agent to endow you with their wisdom regarding the property.
What Not To Do?
If possible, investors should steer clear of all freelance agents as they do not have a legal remedy and such an act is against the best and genuine interests of buyers.
7. Acknowledge The Buying Procedure
It is essential for you as a buyer to understand the entire step-by-step sale process in Dubai.
Asking your broker to take you on a tour involving all the steps of the sale process starting from the knowledge of how to make an offer, the negotiation process, the paperwork required, obtaining the no-objection certificate, transfer appointments, and the handover.
Honestly, the amount you are going to spend on investing will be the largest amount and major investment that you have ever spent.
Hence it is necessary that you understand the buying process thoroughly.
You should take enough time to fully understand the system as it will only allow you to make well-informed and sensible decisions at every step.