Important Things to Remember Before Buying a Property in Dubai
Are You To Buy A Property in Dubai?
A home defines the quality of our lives and are a sign of our status, so take it into consideration the size of your family, stage of life and lifestyle.
When purchasing property in Dubai, there are certain things that are very important:
1. Budget
2. Maintenance Cost
3. Down Payment
4. Visa
5. Rental Yield
6. Market Trends
Budget
- Make sure that your monthly housing-related spending is less than a third of your monthly income.
- Account for any maintenance and annual expenses that the property will incur.
- Check any processing and regulatory fees that will be added to the purchase price.
Maintenance Cost
- DLD has established very clear criteria for annual maintenance costs.
- Calculate using a Maintenance Index based on the total square footage of your property and the arrangements made by your future community.
- RERA Service Charges apply to properties in Dubai.
- Maintenance and upkeep fees by visiting the DLD website.
Down Payment
The regulations of the UAE Central Bank state that THE personal loan cannot be used to make a down payment:
1. For residences worth less than AED 5 million, ex-pats must put down a deposit of at least 25%.
2. For properties worth less than AED 5 million, UAE nationals must pay a minimum 20% deposit.
3. Buyers might obtain a personal loan to cover bank and agent fees, as well as the transaction’s early costs.
Visa
- Applicants who purchase a property of AED 1 million or more are eligible for either a 6-month multiple entry visa or a 2-year residency visa.
- Others who purchase a property worth more than AED 5 million without a mortgage are eligible for a 5-year resident visa.
- Find out that you match the qualifying requirements for these property-linked visas.
Rental Yield
1. Buyers who wish to buy an investment property, or who plan to turn their house into one later in life:
- Must consider if the estimated rental yield will be enough to cover their mortgage payments.
- Ongoing maintenance expenditures.
2. Inexperienced buyers may misinterpret a current rental prediction as the amount they may anticipate receiving each month for the life of their loan.
Market Trends
While buying a property in Dubai, one has to take a closer look at the current market trends. You should be aware about the market trends in the building where you are going to buy a property.
Points to Remember
Ask your agent to provide you with following data:
1. Quarterly Selling Price Comparison
2. Historical Rental Charts
3. Current asking price/ rental trends
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