If you’ve ever considered buying a property in Dubai, you may be surprised to hear that there are many things to consider before putting down your first payment. The Dubai real estate market is constantly changing and with fees and taxes varying from development to development, it’s important to understand the ins and outs of everything before purchasing.
For starters, all the funds you’ve delivered to the realty company will be held in escrow for a minimum of 30 days. This is done so that the company can make sure that everything is okay with you and to receive all documents, permits, freehold and construction permits you’ve provided. Of course, due to local laws, there is uncertainty over several essential things such as whether or not you can have livestock. Then there are the taxes, fees, instalments and other fees that are required to be paid after your purchase.
The listing agent is there to represent you during the renting process and assist you to find a room, which you were promised beforehand but had to pay extra for due to the more desired price. He/she will also represent you during the house-hunting process and assist you to find all the entertaining things you need in a house, as well as negotiate a great deal on all the furnishings.
Once the house is shown to you, the renovation process begins. It may start with removing all the existing carpet and tearing up the walls. The paint job is to cover all the walls and floors with the furniture of your choice. The kitchen and living room will then be added as well. After all the wall covering is completed, you may move on to adding another floor to the house. Depending on how old the house is, you may need to wait a couple of months for the next floor to be completed. Then sometimes additional decorations may be added to the master bedroom or the bathroom. These are the last things that the real estate agent will do before pushing the sale date and contract to you.
If the house you are interested in has all these great features, the up-front fee may also include a moat — a reservoir of water — or an indoor pool. It’s something that will be included in the price because these appealing features are what are going to sell the property.
That’s why it’s better to ask a real estate agent to describe in detail how you can be part of the experience. You want to be sure to secure a deal that will allow you to have a wonderful time during the renovation process.
It all goes by in Dubai real estate fast, and nothing is impossible. While it will take you a little more time to purchase a property, it’s not necessarily stressful. All the services that have been prepared to consult and help you out, are used to their full potential.
Before you even choose a bank, you must consider this: what does the client want from the transaction? This checklist will help you ensure that it is the right property for you, making sure you get what you deserve — and deserving, we mean.
Your deposits are mandatory to get approved for a property by either your local bank or the Dubai Financial Services Authority (DFSA). Questions that you need to answer clearly inform you of the topics to be resolved. Questions/risks such as:
Where you get loan advice depends on where you’re looking to invest the money.
Alternative lenders meet different criteria. They typically have better terms and conditions, but you still need to understand their fees and requirements.
What client groups can be different in the different banks is whether they meet your needs. You need to ask about how they manage different income sources, how they accommodate couples, or whether they meet your needs for culture or location.
You may have lots of information about all of these statements to discuss before making a final decision, but this checklist will make all of the answers easier to find. Before you decide on a banker, you need to clarify exactly where you want to invest your money. This can help you choose between a foreign bank’s interest rate and your local bank’s rate. Most local banks offer rates for funds that are quoted in US dollars (Dollar Mark), whereas the international brands tend to quote rates in currencies such as:
The monthly payment period varies with the type of services needed, but is generally 1, 5, or 10 years depending on:
These are the main things to consider whenever you buy a property in Dubai. As your requirements are vastly different from a caterpillar to a mortar, good communication and hard work is the key to success. Take everything into consideration before you sign that contract.
In fact, many pre-qualified buyers choose to purchase a property in Dubai from private brokers as they involve less red tape and paperwork in comparison with traditional methods, and the total package usually includes a tour of the property accompanied by a suitable guide to ‘enjoy’ the view.
One primary consideration any potential buyer will need to take into consideration is security. There are plenty of well-established security facilities available, which many of the world’s top security companies use to secure their properties around the world. Property in Dubai is often held to international standards, such as ISO 9001 and 5G, meaning that it should be incredibly safe to travel in and around the city. Furthermore, due to the purpose-built ‘Bird’ interlocking airport, there are many forms of biometric and geotechnical security technology in place, ensuring the highest level of protection when you travel into the airport itself.
But this begs the question: how safe is all the things I just mentioned? The answer is that Dubai is an extremely safe location. However, you should always consider travelling within the city, and focusing on caution when visiting its sights, especially when visiting individual apartments. Everything possible is done to ensure the safety of all visitors, with almost 50% of all thefts in the city being committed by foreigners (source).
Expats typically begin looking for homes in Dubai by contacting a local property agent to arrange open houses and shows where they can view potential homes.