5 Important Steps to be Taken when Purchasing a Property
As of 2002, the Middle East was characterized as the most unstable economy for foreign investment in the real estate sector. However, after the freehold decree was introduced allowing expats to rent, lease, buy or sell a property in the Middle East – Dubai specifically has been gaining popularity in the real estate sector.
Today, purchasing a property has become the strongest option for expats living in Dubai. We’ve listed down five important steps to be taken before you make a decision to purchase a property:
Property purchase process in Dubai:
At first, it’s essential for you to understand the property purchase process. There are 2 ways for purchasing a property in Dubai – that’s either purchasing an ‘off-plan’ property directly from the developer or ‘resale’ from a private seller.
For off-plan property purchase, you need to submit your passport along with reservation form that will contain all the terms and conditions of the deal. A fee also needs to be paid to draw up the sale and purchase agreement (SPA) which is known as the reservation fee.
To purchase a resale property from a private reseller, a Memorandum of Understanding (MOU) includes all the terms and conditions of the deal. After which a 10% deposit of the property price needs to be paid by you just to confirm the purchase and henceforth, transfer of deeds can take place.
Evaluate the reason to purchase:
Knowing the reason for why you want to purchase a property will put you in a position where you can analyze, what type of property can benefit you.
For instance, if your intent is to purchase a property for investment; the majority of expats usually rent their property out. Then comes a stage where you must look at the property market and study the properties that have high rental yields. Ideally, it’s best to invest in one, two- or three-bedroom apartments rather than going for a villa purchase. Although a villa purchase may seem more luxurious and grand for you to own, research shows that apartment purchases will guarantee you better rental yields.
Use property portals for knowing the best properties to purchase:
Using a property portal can help you in a great way to purchase a property with best rental yields. There are numerous property portals in the market to make your transactions easier and more efficient. Propertyeportal is a portal which ensures to show you the best properties from the most recognized developers with best rental yields and allows you to list your property for free on the portal. Therefore, rather than browsing each property to purchase you can simply check all the hot properties and hot projects from your preferred developers in just a click of a button.
Calculate your Mortgage:
Use our free mortgage calculator to know how much monthly payments will be and also get to know the total mortgage with interest along with total down payment.
Always obtain pre-approval from your lending institution:
Before you go ahead and make your purchase, it’s essential that you get a pre-approval from your bank or your lending institution beforehand or else it will waste your time and efforts as well as the agent’s efforts who might be bringing the best property deal on your way.