Buying a home in Dubai is one of the biggest dreams of young people because of the importance of the decision and the consequent obligations and expenses. Some things must be considered to avoid mistakes or loss. In this report, “Vision” monitors the 10 most important things that young people should consider before buying a property, according to data from Starling Properties.
1. Determine the objective of the investment
If you decide to enter the real estate sector in the UAE, you must first ask whether you will buy the property to live in or rent it out. And if you are looking to buy real estate for investment, ensure that you are on the right path and that real estate ownership will bring you great financial returns.
2. Duration of property ownership
Before starting this investment, you should think about the following questions:
How long have you lived in Dubai?
How long do you plan to spend in the city?
A rental option may suit you if you are still determining your long-term plans or commitment to living in the area.
3. Choose a property that suits your financial capabilities
When you want to buy a house, you can borrow up to 80% of its price. But first, make sure you have enough money for the down payment, a big upfront payment. Also, consider whether you can comfortably manage the monthly payments, called “instalments,” so you don’t strain your budget. Planning is crucial for real estate financing.
But if you are in the process of buying the property to live in it, the same financing theory can be applied, but instead of paying the rent, you pay the loan amount to become a tenant of your property.
And remember that age, profession, and size of savings are influencing factors that must be considered when deciding to pay the property value from your resources or through real estate financing.
4. Appropriate cost
An international rule that helps determine affordability is that monthly housing expenses should not exceed 30% of the value of total income. It is also necessary to set a budget for the down payment, which can be estimated at 7-8% of the value of the property price. As the property owner, you will also have to cover the maintenance fee and pay the annual service fee.
These fees include: (Dubai Land Department fees – Real estate registration fees – Real estate agents and brokers fees – Mortgage loan fees – Mortgage registration fees at the Land Department – Property appraisal fees).
5. Hiring a real estate expert
One of the most important things that must be done to prevent common mistakes when buying a house in Dubai is to seek the help of a real estate expert. That is another severe and essential step in this process, as this person can discover major home defects such as weak walls, places of leakage, faulty electrical wires, and other things.
6. Location and area of the property
Whether you are buying the property to live in or rent it out, the price of the property and the return on investment largely depend on the size and location. However, each property has unique advantages that allow it to fall into the category of good buys.
7. Maintenance costs
When you buy a house in Dubai, you must pay the annual maintenance fee for the property to the Land Department based on the Real Estate Regulatory Agency’s service and maintenance fees index. That set fees per square foot, whose value varies according to the residential complex. You can view the latest fee updates directly on the official website of the Dubai Land Department.
8. Coordination of the plan
The sizes of rooms vary in real estate, which makes the issue of evaluating real estate plans an important matter. So the property must meet your preference for open and spacious living spaces or more oversized bedrooms.
9. High quality
The property’s age is one of the essential points that must be considered when purchasing.
10. Market condition
You must follow the latest current market trends in the residential complex that you have chosen. To know the appropriate time to buy and fluctuations in rental prices, in addition to the recent rental returns in the region.
