Buying a house is an exciting affair. And when it comes to buying a home in Dubai, the excitement gets manifold.
Regardless of whether you are a first-time buyer or a seasoned buyer, buying a home in the magnificent city is not only exciting but also risky. Therefore, you should not fail to assess the benefits and risks beforehand.
Nowadays, finding a property in the city is not a problem as there are plenty of reliable online platforms, like Toplatest, which lists many Dubai properties for sale.
To ensure the process is smooth and risk-free, consider the following factors before you kick-start your buying process:
First, consider how long you have been staying in Dubai and your plan to stay in the city. You must assess the return on investment. If you are unsure about your length of stay in the city, then it is advisable to shun the idea of purchasing a property as staying on rent is more suitable.
You should not skip checking your finances before you start looking to buy a property in the city. As a standard norm that defines your affordability, your monthly accommodation expenses should not exceed 30 percent of your monthly salary. Your finances are also crucial to cover the upfront fees, usually around 7-8 percent of the purchase price. It is an essential aspect as that dictates your capability to pay the maintenance and annual service fees.
The Dubai Land Department (DLD) charges annual maintenance charges on your property. The charges are based on the RERA Service Charge and Maintenance Index, which is based on a specific charge per square foot and depends upon the community. You can get to know the up-to-date fees on the DLD’s website. So, check out the fees and figure out whether you are comfortable with the fees.
Down-payment is one of the most important factors to consider before you make a property purchase in Dubai. The UAE Central Bank has mandated a minimum deposit of 25 percent of the property price for expatriates if the property is worth not more than AED 5 M. For nationals, the deposit is set at 20 percent. There is also a significant constraint to consider–you cannot fund your down payment with a local bank’s personal loan. So, you have to fund your down payment from your savings. There is no restriction on financing the upfront transaction costs, agent fees, and bank fees through a personal loan.
When you think about your property for the long term, there might be a consideration for you to rent it out eventually. Therefore, you should assess the projected rental yield and determine whether it will be sufficient for you to cover your monthly loan repayments and maintenance fees.
In the UAE, if you intend to buy a property worth above AED 1 M, there are chances for you to get a residency visa based on home-ownership. But, there will be some conditions for you to fulfill. Check those out.
There are two visa types available in the country– six-month multi-entry or two-year residency. Moreover, there is also an option for property owners to sponsor a visa for their immediate family members. And for properties worth more than AED 5 M, you can get a five-year residency visa with certain eligibility conditions without any mortgage.
The location of your prospective property is essential to consider. Therefore, take into account your family size, lifestyle, and the stages of your family members’ lives before you finalize a property. It is advisable to look for a property near school or childcare facilities. Figure out how long it will take for you to go from the property to your workplace or your children’s school. If restaurants, cafes, cultural attractions, or nightlife facilities are essential to you, then check out if they are within the neighborhood of your prospective property.
Assess your prospective property’s size and figure out if it has enough space to accommodate your family members. Even if the property you are interested in is enough for your family, consider if you have any plan to expand your family in the future. And in that case, look for a property that can accommodate your future family. Also, do not forget to look for a spacious backyard for children to play and relax.
Not all footage is equal. So, you should assess the floor plan and layout. If you prefer living in spacious areas, then look for a property with larger bedrooms.
Assess the quality of the property. Find out the reputation of the builder. The quality of the property has a lot to do with the returns on investment.