Advantages & Disadvantages of a new property ownership in Dubai
So youâ€™ve decided to buy a property?? Here we look at the pros and cons of both new and old properties:
â–ªï¸ Make your move
The Dubai real estate market is one of the best in the world. This city is in continuous development and always aiming for the top!!
To purchase suitable homes or high-ROI yielding properties, buyers often rely on two options â€”
â–ªï¸ Professional real estate agencies
â–ªï¸ Property owners or developers
Manage the risks by educating yourself and identifying the right professionals to get involved.
There are many factors that need to be considered for those who plan on buying real estate directly from developers or individual sellers rather than real estate agencies:
1. Start saving money
2. Skip the Middleman
Tips to keep in mind
â–ªï¸ If you rely on a broker or real estate agency to find your property, the cost of buying a property in Dubai increases.
Letâ€™s try & Put some financials!!
â–ªï¸ If you opt to buy property directly from an owner or developer, you will need to pay mandatory DLD fees, which are 4% of the property value.
â–ªï¸ The overall charges will also include the fee for issuing the Title Deed and a DLD admin fee.
â–ªï¸ For those financing their properties via a mortgage, a Mortgage Registration fees also applies, which is 0.25% of the total value of the mortgage with an additional admin fee.
Facts: Brokers can charge a 2% agency fee in addition to all the fees mentioned above. Some agencies also add a 5% VAT charge on the fee which can hike up the cost.
Skip the Middleman
By breaking down the barriers between the seller and yourself, you might also find a suitable property faster. For example, most popular developers in Dubai (Emaar, Meeras etc) allow buyers to book their desired properties online.
Disadvantages of buying properties in Dubai directly from owners:
Lack of property knowledge
â–ªï¸ First you build your confidence to assess a home with the same detailed approach as a seasoned real estate agent.
â–ªï¸ If not, that can get lost in the more superficial points.
â–ªï¸ Or else you have an impartial second person with you who is subtly focused on the key things during the tour with the seller.
â–ªï¸ If you decide to go forward here are some basics to consider:
* Navigating the area of your offer
* The many things to negotiate may be the trickiest part.
Negotiating is an art form!
Especially when it comes to something as important as a property sale!!
Factors like emotional attachment can play a significant role and often discourage sellers from accepting your offer. In such cases, it might be best to rely on a real estate agent to secure an appropriately priced property for you. Experienced real estate agents are seasoned negotiators. Theyâ€™ll usually ensure that you get the best deal based on factors that influence a propertyâ€™s value on the market. Like, have a highest price that you can go in mind.
Note: If your offer is initially rejected, keep working with the seller till you can come to a place in the middle.
These are the popular neighbourhoods where you can purchase properties direct from developer or individual sellers in Dubai:
â–ªï¸ Al Qusais
â–ªï¸ Jumeirah Village Triangle (JVT)
â–ªï¸ Al Nahda
Reputed developers for buyers and investors for â€˜direct to ownâ€™ properties in the city:
â–ªï¸ Dubai Properties
â–ªï¸ Azizi Developments
Hereby, we conclude our guide to the advantages and disadvantages of a new property ownership in Dubai!!
Are you interested in purchasing a property in the Dubai? Check out the properties for sale!!
You may also get a checklist for buying a property in Dubai Real estate market, the legal steps of buying a property in Dubai.
Our results can prove to be useful!