Need immediate assistance?
Here's a checklist and step by step guide that you tick off as a property buyer in Dubai.
Words by Ankita Bhowmick in The Guides · Nov 5th, 2017
Buying a property can be quite a daunting task. A lot needs to be taken into consideration as it involves in investment of a hefty amount of money. Here are Luxhabitat's top tips and advice on buying a property in Dubai will make it easier for you.
Before deciding on a property to buy, one needs to determine whether it is meant solely for investment or for living in. A property, meant for investment, will mostly be rented out and therefore should be one that yields the highest. In most of the cases, it is seen that a studio or a one-bedroom apartment have higher yields than three-bedroom apartments and large villas. But if it is for the purpose of staying, the type of community, the neighbours, facilities, amenities, proximity to workplace and public transport should be particularly taken care of. While a family with children would want to have a quiet community with schools and nurseries nearby like that of Arabian Ranches and Meadows, young couples who do not have children might go for a vibrant community with entertainment options like nightclubs within the vicinity like that of Marina and Downtown Dubai.
One of the main aspects that needs to be taken into consideration while choosing a property to buy is whether it is an off-plan or from secondary market. An off-plan property is one which is still under construction and needs to be bought from the developer while secondary market ones are resale from an owner or an agent. While purchasing an off-plan property, the developer's reputation must be taken into account in terms of quality, timely delivery of units and past projects.
In most cases, the property being bought from a developer is under construction while being sold for which it becomes necessary for one to visit show homes in order to get an idea of what can be expected. If the property is being bought through a real estate, one that is registered with the Dubai Land Department should be opted for.
Luxury Sales Specialist, Brigitte Tenbergen says, "Only deal with professional brokers. If the property is an off plan one, a developer with a proven track record should be dealt with. Take your time to compare the different options. Make sure to be pre-approved if you are going for finance or have your cash ready (in Dubai) or make sure that you can move your funds from abroad. Get all information with regards to expenses related to the property like service charges, charges of AC, etc."
If the property is being bought on bank-finance, a pre-approval obtained from the institution beforehand saves time of the buyer, seller or the agent. Expats, in order to get a pre-approval, typically needs to provide the institution with their passport copy with visa page, copy of Emirates ID, address proof such as utility bills, evidence of regular income, bank account statements for three to six months along with the memorandum of understanding for the sale of the property, the title deed of the property and a no-objection certificate (NOC) from the developer. Cash buyers, on the other hand should ensure that sufficient funds are available in their bank accounts in order to avoid any kind of inconveniences.
It is very important to determine the re-sale value of a property before investing money in it. People tend to take decisions like upgrading their home to a bigger one or at a better community or moving to a different country. In such cases, it is important that get a good amount of money while selling off their existing home, which can be ensured by buying a property that has good re-sale value.
Property purchases are accompanied by legal documents such as Memorandum of Understanding (MoU) or a sale and purchase agreement (SPA) between the buyer and seller, which consists of terms and conditions of transferring the property from the seller to the buyer. It is very important that the clauses mentioned in the documents are understood well and is signed after agreeing to them.