Are you considering buying property in Dubai? If yes, then this article is perfect for you. Dubai is one of the finest cities in the world for living a peaceful life. We have seen on TV and in many magazines how glamorous Dubai is, which is why many people try to settle in Dubai once and for all.
Buying property in Dubai is no minor deal because getting property in Dubai is already tricky, as there are many things you should look after before buying property in Dubai. Getting a property, then that property should also be according to your needs.
Buying property in Dubai involves many expenses, but do not worry. Heavy taxes are not one of those. Here, some other costs should be mentioned more while buying a property. These expenses sometimes do not cross our minds, and your budget may increase.
The lavish lifestyle of Dubai is not the only thing that attracts investors here; there are many perks of buying property in Dubai, and the investors highly appreciate some of these. Here are some of the reasons why it is best to have a property in Dubai -
No Tax
The governments of UAE and Dubai apply no tax on property. There are fewer places where you will get this benefit of taxes. Buying property in Dubai will help you save 10-20% of the amount you may have spent on taxes in other countries.
Community Culture
Of Dubai's overall population, only 10-12% of people originally from Dubai are foreigners who have invested here and settled to build a better career. But do not let this small number fool you; you can see the cultural heritage of Dubai in every corner of the city-state.
Career Opportunities
Dubai may be the only fully developed country, but it is expanding further. This development leads to many career opportunities for people with different professionals. Dubai's pay and working model is healthy and does not contain a harsh working environment or culture for its employees.
Luxurious Lifestyle
Luxury is the second name of Dubai. Everything you look around in Dubai is luxury. Even the home you buy will be made from luxury materials and possessions. Cars, buildings, beaches, and attractions are famous worldwide.
Tourist Spots
Wherever you go, you will find at least one tourist spot in Dubai, enough for people to spend the whole weekend or a holiday. The tourist attractions of Dubai are not expensive to empty your pockets. You can plan a fun day with your family on Sundays or holidays. Burj Khalifa, Palm Beach, Dubai Mall, and Dubai Zoo are some must-visit attractions.
Yes, like any other place in the world, unexpected expenses occur while buying property in Dubai. Here are some of these to note:
Broker Commission
Whenever you consider buying property in Dubai, you must consider buying property through a certified and well-experienced broker or agent. Why hire a broker or agent? Fraudulent chances will decrease gradually because they can provide you with an actual overview of the property. Brokers are good sources for finding a property.
In Dubai, a broker can usually charge from 1% to 4% of brokerage charges, the maximum. Highly rated brokers charge more brokerage as they promise you to show good properties. Keep brokerage charges ready by saving 1-3% of the total property charges. Why will you need to go places and places to find property for yourself when you have a broker to do that for you?
Maintenance Charges
Maintenance charges in Dubai are high, and these charges are collected monthly or yearly in Dubai. Why do we pay these charges? Because buildings and society in which you are living need maintenance and need to pay salaries for the overall services such as security guards, floor cleaners, receptionist, etc.
As Dubai provides high-quality living, this high-quality living comes with a higher price because you will pay for the maintenance of more amenities that a developer or property builder offers. These charges cover electricity, gym, pool, play area, and ground utilities.
Transfer Fees
While buying or selling a property, a fee is included confirming that these two parties have exchanged the property for a financial asset or money. This agreement mode requires specific fees for calling the transaction legit.
It is always advised to pay a transfer fee to any property in Dubai and mention that this particular amount is a transaction fee that will be used sooner or later. If a developer does not mention the transaction fees, it will be better to ask them if there is any such fee.
Interest On Loans
If you make less than 100% payment, getting a loan is the only option. Banks will charge more interest for longer payment durations. Usually, the interest on property loans is 10-20%, and customers can pay these loans quickly through monthly options. Most people must consider the interest they will get with the loan while buying property in Dubai.
To avoid high interest on property loans in Dubai, the best thing you can do is make a heavy down payment. As you make more down payments, your loan amount will decrease, and the interest will also reduce.
Mortgage
Banks or money lenders keep something in exchange for mortgage money. Mortgages in Dubai are standard as most of the loans in Dubai are taken through mortgage loans. The financial bodies will only pay if you want to keep something on the mortgage.
In Dubai, cars are common elements of mortgages because cars and vehicles have good value, which can be given to financial institutions for the exchange of money. Another mortgaging element in Dubai is gold, a powerful asset that can be used to take out heavy loans in Dubai.
Shifting Transport Charges
If you are already living in Dubai or moving to Dubai, you still need to pay to transport the goods and services from the old apartment to a new one. Here, the charges of packers and movers are observed; in Dubai, packers and movers charge according to the amount of weight they will carry and how far they will be moving the goods.
The charges in Dubai for packers and movers are high because it is precarious work, but if any of your goods go missing or damaged, they will be covered under the insurance policies. Moving from a different state of UAE to Dubai is challenging, too, because of the vast distance.
Interior Design
The interior of homes in Dubai is unique from apartment to apartment. People in Dubai tend to live a luxurious life and display a luxury lifestyle in their homes, so people here spend a lot of money on interiors. Some even hire an interior designer to do the work at the finest.
Interior designers in Dubai charge more because they are highly skilled in their profession. Such designers must set up big apartments because the interior design will help reduce costs. Also, the cost of the house's interiors, such as furniture, showpieces, and kitchenware, adds up to 10% of the apartment's value.
DEWA fees
DEWA fees are the charges required to be paid by the homeowner to activate utilities such as water and electricity. This process is compulsory for anyone; your apartment will only get water or electricity if you pay DEWA fees.
DEWA fees consist of a deposit deducted after cutting monthly charges; the deposit is $ 200 for apartments and 4000 AED for villas. Usually, the utilities in Dubai will cost you 150 to 200 AED on average. Dubai is a desert, so water must be converted and purified through many processes before reaching you.
ISTA
ISTA is another utility service only found in the UAE, which is to challenge the harsh environment of Dubai. Developing the area, renewable sources and power sources in Dubai requires lots of effort and energy because there are fewer energy choices.
To counter the heat, Dubai uses artificial rain and water sprays to keep the temperature cool during peak hours, and because Dubai is a desert, sand is everywhere. Sometimes, sand is the cause of technical failure, and there is a need for staff to clean vast amounts of sand after a sandstorm.
There are a lot of hidden expenses when you purchase a property in Dubai. All these fees are essential for developing and maintaining the city, making it stand apart from the rest. Without these efforts, you won’t see the brighter side of Dubai.
However, for the sake of government fees, some people might fall into the trap and not get into deep communication, which uncovers all this. Therefore, it is essential to get into open communication so that everything can be carried on transparently. This way, you will know what you are paying and why.
If you want to invest in a property in Dubai, contact us at Dubai Housing. We are real estate professionals with complete knowledge and information on the fees associated with the property.
What are you waiting for? Call us now!
