For many people living in Dubai, buying a new home can be one of the most exciting, yet stressful, experiences of their lives. Buying a home in the emirate can take quite some time and energy. But it’s worth it when you find that perfect property to call your own. Here are some things you need to know before you buy a new home in Dubai.
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Are you looking to move soon?
Whether or not you have children, there are many reasons to consider moving. Perhaps you’re worried about natural disasters. Maybe your current job is taking too much time away from your personal life. Or maybe, like many others, you’re just hoping for a change of scenery and looking. For an opportunity for more space or better amenities. You should always make sure to get professional moving services from Movers and Packers in Dubai when moving. Whatever the case may be, moving is never easy. However, with some careful planning and consideration of your options (including temporary housing), it can be relatively painless—and dare we say fun? While everyone’s situation is different, here are four important things every first-time buyer should know
Location, location, location.
When it comes to real estate, location is everything. It’s also one of your biggest considerations when deciding which place (or condo) will be best for you and your family. In some cities, like Dubai or Hong Kong, entire regions are primarily residential (meaning no industry clusters). Consider getting services from Movers and Packers in Dubai Marina, In other places like Silicon Valley or Austin, tech-heavy suburbs have taken over. For example, San Francisco is one of the priciest places in America to live; however, it’s also an extremely popular city for businesses of all sizes.
The cost of construction.
An entire house can be built for AED 400,000 and up. Inexpensive labor and materials make it one of the cheapest cities to build in globally. However, if your house plans are complex, it will be more expensive. The cost of building permits vary from AED 10,000 -50,000 depending on where your house is located and what its size is. Building permits allow you to legally live in your property while it’s being constructed; they are issued by different government agencies at various stages of construction so it’s important that you check with them during each stage (pre-construction/post-construction) of your project. Building regulations have been revised recently so do check with local authorities as they may change depending on where your property is located.
Will it appreciate in value?
When considering whether or not it’s worth purchasing an apartment, one of your first questions should be: will it appreciate? Real estate and real estate professionals love saying that their property always goes up in value. And while that may or may not be true, it’s important to understand exactly what they mean when they say that. The fact is, if you purchase an apartment today for $400,000 and then sell it ten years from now for $450,000 (at least without doing any major renovations or updates), there’s no way anyone can say with absolute certainty whether or not it went up in value over those ten years. But what if instead of selling right away, you kept renting out that $400k unit?
Buying off plan.
Buying an off-plan property has its risks, and it’s wise not to jump on board without knowing what you’re getting into. In general, buying an off-plan property is best suited for people who will be certain about their choice of location, with enough money set aside for contingencies. If things don’t work out as planned, it could cost them more than they bargained for—and there are some important factors that need to be considered beforehand. It’s also worth keeping in mind that prices may change (perhaps significantly) between your decision and move-in day.
Being realistic about your budget.
You don’t want to get too carried away when figuring out how much you can afford for your dream house. In addition to budgeting for furniture, other household necessities, and travel, there are also plenty of expenses that come with buying a home. You will have to pay property taxes, homeowners insurance, and utility bills (like electricity and water). These all add up quickly so it’s important that your financial plan takes these into account. If necessary (or even just helpful), speak with an expert who can help sort through everything – we suggest speaking with an accountant or real estate agent. Regardless of who does your research though, make sure it is accurate.
Where will the money come from?
In most cases, purchasing a home takes time. Typically, it takes about 2-3 months for your application to be approved and your funds processed by your bank. This is because banks typically check to make sure you have enough money saved up for a down payment, as well as money saved every month for expenses and mortgage payments. In addition, buyers may have their own financial obligations that prevent them from being able to start searching for homes right away—for example, other loans or credit card debt. Purchasing real estate is not something that should be rushed into; take time and save up!
Banks lending rules.
Buying a home or villa in Dubai is one of your most important financial decisions. But it’s important that you’re aware of what amount and type of loan limits are set by banks as well as their eligibility criteria. For example, banks typically have rules on how much they’ll lend based on income levels and other factors including outstanding debts and expenses. The average monthly income should be between AED10,000 (US$2,700) and AED20,000 (US$5,500). As for outstanding debts, some banks say that up to 75% of your monthly net salary can be used for housing repayments; others will let 80% go towards debt repayments if at least 20% has been set aside for savings.
Are you eligible for a mortgage loan?
Before you start house hunting, it’s important to make sure that you’re eligible for a mortgage loan. A common misconception is that foreigners can’t get a mortgage loan at all, but that isn’t true. The process may take longer than it would for locals. Foreigners are essentially treated as international investors. But most people do end up getting approved. How much of your salary will go toward paying off your mortgage depends on two factors: Your credit score and how much money is put down upfront.
