Tips To Buy Property
In buying your property, there are a few things that you might need to consider.
Whether you are looking to start a new life overseas or a smart place to invest your money, you really can’t go wrong with Dubai.
When you’re buying your new home, investors or property buyers must learn how to negotiate and come up with a nice property deal. However, you don’t want to seem too eager to snatch the property that you’ve been eyeing but you also want to make sure that you aren’t overpaying.
Here are a few tips in finding your dream home in Dubai.
1. BE INFORMED
The first thing you should do before purchasing a house in Dubai is to research. Thoroughly research the market and look at recent house sales in and around the area and use the figures as your bargaining tool. As much as possible, identify the price of properties sold in the area and figure out which is property market trending in that location.
2. KNOW WHAT YOU WANT
When purchasing a property, you should consider the purpose of the purchase. A property that is bought for personal use is very different from a property that you would use for rental business, etc. If you are buying for investment purposes, make sure you know what the market price is and the rental yield you can expect to earn while buying Dubai properties.
3. CHOOSE A BROKER
When it comes to choosing a broker in Dubai, it’s best to find one who specializes in the area or areas you’re considering making a purchase. Areas in Dubai are very different: from an urban lifestyle in Downtown to serene shoreline villas— you should have an expert in the community you are interested in.
4. LOOK FOR LOCAL EXPERTISE
It is of great advantage when you find an agent with in-depth local expertise. It is important because every area/community poses unique challenges. Talk to someone who has a proven track record of selling properties in the neighborhood you wish to buy in as they will know the ins and outs of the area and help you bag the best price. It will also give you the confidence that youve chosen the right priperty on that location.
5. ASK QUESTIONS
Buying in a foreign country can feel intimidating, especially if you have never lived or purchased property there before. So, having questions about everything from the process to the details about the property itself is only natural. If there is something you don’t understand or want more information on, it’s essential to have an open line of communication with your broker and the seller.
6. FIND OUT ABOUT HIDDEN CHARGES
In buying a property, you should be aware of hidden charges and other extra expenses. Service charges covering maintenance of communal areas such as gyms, parks, pools and other shared facilities can either be a fixed rate or could vary depending on the size of the property and the area. If you decide to purchase a large property, this could become a significant cost. It would also help if you ask residents about the average water and electricity (DEWA) bill for a similar property would amount to. Other extras would include agency fees and mortgage registration costs. You should know these costs beforehand and consider your budget. These are factors that you should consider especially if these expenses are billed monthly, etc.
7. KNOW THE BUYING PROCESS
There are different types of purchasing properties in Dubai. And it is best for you to know these processes. You can either purchase off plan from a developer or buy it from a private seller. When purchasing off-plan property, expats will need to provide a completed reservation form, their passport and a reservation deposit amongst other documents. If you are going in for a “resale” purchase, you and the seller will need to agree on a Memorandum of Understanding (MOU). As the buyer, you will need to put down a deposit, usually amounting to 10 percent of the property price, or alternatively whatever has been negotiated. The formal transfer of deeds will take place on obtaining financing. Knowing these processes and their differences will give you an edge in deciding which kind of property owning you are willing to undergo.