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Buying property in Dubai is a big decision, as well as a major investment. When you are in the process of making such an investment, you should know a few things. These include Maintenance standards, the Cost of living in Dubai, Getting a loan or mortgage, and much more. Therefore, this article is a complete guide when you decide to buy property in Dubai. Read this article carefully, until the end. Let us get started:
1. Off-Plan Vs Completed Properties
Purchasing a property in Dubai is a profitable long-term investment. However, before you buy, it is important to know whether you should buy an off-plan property or a completed property. You may get better returns on an off-plan property, but you may also experience delays and cancellations.
Off-plan properties are the property that is still in the construction stage. They are usually cheaper than ready properties and offer a variety of benefits. Most developers offer a structured payment plan. These plans usually last for several years after completion. The amount is due in installments.
The key advantage of buying off-plan Properties in Dubai is that you will get a lower down payment. However, there are some risks involved, including cancellations, delays, and market fluctuations. You also have to be careful about the quality of the unit. Make sure that you research the developer. Check their track record and the quality of their previous projects.
Dubai Off-plan properties also offer you the flexibility to choose from a variety of apartments. This gives you the freedom to choose the best apartment in the development.
2. Maintenance Standards
Buying property in Dubai is a big investment and you need to know what the maintenance standards are. This includes the number of stairs in your building, how to use your elevator and how to clean the swimming pool.
The best part is, you can deduct the cost of maintenance from your rental income. These fees are called service charges and are based on the RERA service and maintenance index for properties in freehold zones.
The most common maintenance activity is cleaning the swimming pool. Other maintenance tasks include guarding the building, maintaining infrastructure, and cleaning the common areas. You might also be required to demolish your property and construct new structures.
The most expensive of these tasks is replacing the roof of your building. A good way to save money on this cost is to find out whether the developer is offering this service. Luckily, some companies do this for you. You may also be asked to sign a technical report demonstrating that you understand the best ways to maintain your property in Dubai. You can get a lot of useful information about the maintenance industry by going to the Dubai Land Department website.
3. Cost Of Living In Dubai
Whether you are moving to Dubai for a short period or moving there for good, understanding the cost of living in Dubai will help you make a decision. The cost of living in Dubai is not cheap, but it is an attractive place to live and work.
Many factors can affect when choosing to Buying property in Dubai. For example, how much you pay for water will affect your monthly budget. What type of transportation you choose can also have an impact on your budget. If you are a commuter, you may be able to save a few dollars by using a transportation app.
Another factor that can affect your cost of living in Dubai is the cost of education. There are numerous universities and colleges in Dubai. This may make your education budget stretch further. Nevertheless, a few things you should keep in mind before choosing a university.
Clothing is important in the UAE because of its Islamic culture. For example, women should keep their shoulders covered. The cost of clothing varies depending on how much you buy.
4. Getting a Loan Or Mortgage
Getting a loan or mortgage when buying property in Dubai is easy. However, you should do your research before making a decision. You will need to know your budget and how much you can afford to spend on a home. You will also need to choose the right bank. However, you can find out how much your monthly payments will be through an online home loan calculator.
The prices of buying apartments in Dubai has increased in the past year. This is on the back of a wider economic recovery in the UAE. Demand is increasing steadily. The number of transactions is also on the rise. However, with the increase in interest rates, the real estate market may be cooling down.
To qualify for a mortgage, you need to have an income of at least AED 25,000. You must also be a UAE citizen. Moreover, you will need a valid visa and a residence certificate.
You can choose to make a down payment through a loan or from your assets. If you are buying off-plan property, you may be required to put down a higher percentage of the price. In addition, you may also be required to have a valid credit report.
5. Usufruct Qualities
Among all the property schemes vying for your attention, usufruct property is definitely in the mix. It is most obvious benefits include the ability to make a long-term investment and reap the financial rewards of owning your very own home. If you are looking to make a move, you will find that there are plenty of usufruct properties in Dubai available to choose from. In short, you will be able to own a piece of the UAE’s property puzzle without having to worry about the red tape and other hoops that plague foreigners who try to buy property in the emirate.
Usufruct property is the most common type of real estate in the UAE. It is similar to freehold property in many ways, except for the mandatory maintenance fees. The most notable difference is that it can be bought only from an authorized developer.
6. Service Charges
Buying property in Dubai requires more than just the purchase price. You will also have to pay service charges that are part of the total price of your purchase. These fees vary based on the location of your new home, the size of the property, the developer, and the property type.
The service charges for apartments in prime locations in Dubai can range from Dh15 to Dh50 per square foot. However, the service charges for apartments in lower areas are less. The average cost for an 800-square-foot apartment in Dubai can range from AED 600 to AED 16,000.
The service charges are based on the size of the property and its usage. Common areas include parking, security, swimming pools, and parks. The cost of utilities, such as electricity and water, may also be included in the service charges.
7. Documents To Buy Property In Dubai
Buying property in Dubai is an excellent investment opportunity for foreigners. The UAE government has launched several initiatives to promote real estate investment. It offers a wide range of properties that cater to the requirements of both local and foreign investors. These include apartments, villas, and townhouses.
The first step to purchasing an Apartment or Villa in Dubai is to determine the type of property that you want. It is recommended that you seek expert advice to help you make the best purchase.
Property in Dubai falls into two categories: freehold or leasehold. A freehold property is a home owned by the owner. This means that the owner can sell or rent the home. However, the property can also be transferred to another owner through an inheritance.
Buying a property in Dubai is not a complicated process. However, certain documents are required.
8. Liquidity Is an Essential Part of Any Wise Property Investment
Having a high level of liquidity is essential to have a profitable property investment. Liquidity is the ability to exchange an asset for money without compromising its value. A property with low liquidity may result in your investment being stuck on the shelf. Having a high level of liquidity will enable you to get the best rate on debt finance.
The best way to determine how liquid a particular asset is to ask questions about the property’s history. The location of the property is also important, with certain locations having better resale values than others. You can also look for properties with amenities that may attract an investor’s eye. If you are lucky, you may even be able to purchase a property at an off-market price.
Final Words
It is no secret that real estate is a highly correlated asset to the general economy. This is why a well-placed property can be an invaluable source of collateral security for a loan. Dubai real estate market is rich and free from any blunder. You should just decide whether you want to purchase off-plan property or ready-to-buy. Off-plans show fruitful long-term investment. Whereas, ready-to-buy is for immediate shifting and living purposes. You can just call us for buying property in Dubai.
Our expert real estate agents in Dubai can assist in buying, selling, or renting process. In addition, we have real estate agents who can speak and understand diverse languages. So, do not worry about the language barrier. So, just call us, book an appointment, and close the deal. For, any further queries, just comment below or visit our site. Thanks for reading.
