Wherever you may emigrate for a career or are searching for a second residence, acquiring real estate in Dubai is a win-win deal. Regardless it requires some preparation and knowledge of the rules that govern that area. This guide to Dubai property will assist you get acquainted with the process of buying a house in Dubai and thus help you in making a clear decision.
Step 1: Manage Your Finances
The first and one of the steps to buying a house in Dubai is to get your finances in order. This is because Dubai’s property market is associated with a number of charges including agency commission fee of 2% and a transfer fee of 4% to the Dubai Land Department.
If acquiring a mortgage, it has to be noted that for expats a minimum deposit of 25% of the real estate value is required. The mortgage rates differ depending on the lending terms and the lender with rates ranging from 3% to 8%. Also, since the UAE Dirham is attached to the dollar, any fluctuation in interest rates by the US Federal Reserve will lead to changes in local mortgage rates as well.
Step 2: Check Your Mortgage Eligibility
If you are thinking about taking a mortgage on the property you intend to acquire, the next step for you is to determine if you can qualify for it. Considering the assistance of a mortgage specialist can enable you to review the different mortgage products that are available, while also providing a letter of pre- approval which will enhance the efficiency of the purchasing process upon identifying a favorable.
Also, a mortgage advisor will recommend the most appropriate products for you given your current situation and this enables you to make better choices and acquire your mortgage in a timely manner.
Step 3: Decide the Right Location
A key determinant when it comes to purchasing property is the location as this determines how much the property will be worth in the future. While Dubai has various areas, each of them offers a variety of activities and even a lifestyle that is different from the other. Be it the Oceanfront villas located in Palm Jumeirah or those in downtown Dubai, it is remarkable to consider the distance to the place of work, schools as well as recreational centers whilst deciding on housing purchase.
You can also employ detailed area books or seek the help of property consultant to find the most advantageous place regarding your lifestyle and investment opportunities.
Step 4: Choose the Dimension and Options
After you choose a specific area, the next step is to determine what features are most important to you. How many bedrooms are acceptable? Do you want a concierge? Must the building be close to a subway station? By specifying some requirements, you can make your search more efficient and not waste time looking at houses that do not fit your criteria.
This step ensures that all efforts and resources are geared towards a specific focus and hence ease greatly the complexity of searching for a house to reside in within the broad housing market of Dubai.
Step 5: Make and Secure Your Offer
After settling on the ideal property which you found or came to view, the next phase is to work with your broker in making an offer. The broker in this case will do the negotiation with the seller to ensure you get the best price possible. Upon agreeing to your offer, the seller will cause you to enter into a Memorandum of Understanding (MOU) which expressly details and stipulates the terms of the purchase.
Right now, you will have to place a 10% payment with the property agency (under any circumstances do not pay this directly to the seller) and identification documents like a photocopy of the passport will be required.
Step 6: Finalize the Purchase and Transfer Ownership
In order to go through with the transaction, your broker will have to get a No Objection Certificate (NOC) from the builder, which states that the property is free of encumbrances. Then, once the NOC has been obtained, the last step entails going to the Dubai Land Department and executing the transfer of the property ownership in your name.
Besides, the transfer fee that stands at 4% of the property purchase price and any other incidental charges that arise (generally less than AED 4,000) will have to be settled. Upon completion of the transaction, you will be granted with the Title Deed that legally confirms your ownership of the said property.
Conclusion
It is one of the best investments and at the same time the most secure and safest investment for a person to buy a house in Dubai, however, it takes time and appropriate examination of procedures. From getting your finances in order to get a mortgage, getting the right location, and having all the legal documents will make sure that these follow the steps in buying a house. With the right information and strategies as pertains to the Dubai property guide and the agents, it is not an uphill task finding and buying a home in this beautiful city.
