April 15th 2019
7 THINGS TO KNOW BEFORE BUYING PROPERTY IN DUBAI
Buying a property in Dubai is definitely going to be one of the significant investments you are going to make during your entire life. Many people aspire to have property in Dubai and rightly so. But before you go for such a big decision, you better know a few things.
- Future of Dubai – When it comes to being prepared for the future, Dubai ranks very high. Be it residents or investors, Dubai has a lot to offer for both. There are massive large scale real estate projects that are under construction in many areas of Dubai.
- Freehold vs Leasehold areas – For making an informed decision, one needs to understand the basic difference between Freehold and Leasehold areas. Whichever part of the world you’re from, you can buy property in freehold regions. In leasehold areas, one cannot buy property but can only lease it. The time period of lease can vary from 10 years to 99 years.
- Expats vs Local Emiraties – Are there different rules for Emiraties compared to expats ? Now, The laws for transaction are the same for expats and Emiraties. But there is no limitation of freehold or leasehold areas on Emiraties. They can buy property anywhere.
- Finance for your real estate – Financial services are available for property but they are restricted only on Banks and companies authorized by the United Arab emirates central bank. Interest rate on home loans is usually around 3 to 4 per cent.
- Investing vs Living – The requirements of property for investing and living are different . There are certain areas considered perfect for investment. For investment you would want properties that have high rental value and there are many amenities and commercial centers around the property. Dubai offers perks such as tax, easy and transparent procedures, high rental yield, high capitalization of investment and so on to its investors. If you want to be living in Dubai, your requirements are different. You would want schools, hospitals, supermarkets and restaurants etc. to be in close proximity to your home.
- Area and the Developer – You should ensure that your building is constructed by a well-known developer. You can also ask your agent to get you in touch with the developer for clarifying any doubts that you have. Factors to be taken into account while choosing area is security, year of completion, service charges and current market trends.
- Charges Required to be paid – You should be aware of the fees and charges that are associated with your property purchase. Below is the list of charges :-
- Agent’s Fee/ Commission – The standard commission is usually around 2% of purchasing value. It can vary according to your real estate consultant.
- Dubai Land Department fee – Any person buying property in Dubai has to pay 4% of the purchase value to Dubai Land Department.
- Registration Trustee fee – The transfer of property takes place at the registration trustee office. If the purchase price is less than Dh 500,000 the trustee fee is Dh 2,000 however if the property value exceeds Dh 500,000 the trustee fee becomes Dh 4,000.
Hoping that the above information was helpful. For any help or further clarification, contact Property e Portal – Dubai’s leading real estate reference portal.
Written and published by Propertyeportal media team.