Are you looking forward to buying an apartment in Dubai? Congratulations because it is a great move! Dubai is one of the safest places to live in, where you can experience comfort and modernity. The policies are reasonable, the blazing sun is counterbalanced with efficient air conditioners on one hand and great relaxation centers on the other. To crown it all up, real estate reeks billions yearly in Dubai.
Buying a home or apartment or property in Dubai is a nice idea – guaranteed. But like every other nice idea, you need to get it right to maximize your investment and enjoy the value of your money.
Understanding that many prospective property owners in Dubai are looking for trusted information on the dynamics of buying a property in Dubai, we have prepared this piece as a guide. Below are five (5) effective tips for buying an apartment in Dubai.
#1 Put Features/ Quality first
It is easy to fall for the super marketing abilities of some agents and landowners. You have probably been pitched a nice apartment as one of the properties for sale in Downtown Dubai, or in Dubai Marina, and you are now excited to close the purchase right away. Relax, take a deep breath and consider whether the property is suitable for you/ or your purpose. You should consider the quality of the property and other factors such as the location, its proximity to major areas, or basic amenities such as the mall, transportation services, and other crucial places such as a hospital or children’s school. Also, before you grab that seemingly best offer, make inquiries about the prevailing trend in the real estate market at that particular time and most importantly, the cost for maintenance. Putting all of these factors into consideration will give you a clearer and bigger picture. Look, watch and study before you leap.
#2 Know the Real Estate Business in Dubai
You don’t have to be an expert in the real estate business in Dubai, but you must have basic knowledge about it. The first thing to note is that you are either buying from a private seller under a resale option; otherwise known as the secondary market or from the primary market from a developer (while it is still under construction) under an off-plan. If you are buying a resale, please ensure that the agent is licensed to sell locally. You can demand to see his/ her broker card just to be sure about this. In a resale, you may need to provide your passport; and pay 10 to 25% of the actual purchase price for the Sales Purchase agreement to be drafted. Then you may have to sign a memorandum of understanding with the other party. In an off-plan, the process is essentially the same, but be wary of the completion date (it must be definite) and the terms surrounding any possible eventuality where the property is not completed within the specified time. Also, you should check out the reputation of the developer in question.
#3 Survey the Property
This is not compulsory but it is advisable. A professional surveying company will be able to tell you the condition in which the property is in, and how much the running maintenance will cost. The villa may look very good and tidy and beautiful flowers that you saw in picture book, but the eyes of a surveyor will pry through the surface to ascertain whether or not you are buying a liability. A survey pre-empts maintenance cost and where necessary, arms you to be able to demand that the property be put in a better condition or help you in negotiating the value of the property.
#4 Consider why you are buying the property
According to Ax Capital, the utility you have in mind for a property will determine which is best for you. If you want private villas, you should find a reliable one in good condition. If you intend to put it to rent or resell, it is best to opt for smaller-sized apartments as they generate higher ROI in both rentals and sales.
#5 Request for the No Objection Certificate (NOC) and be wary of mortgage clauses
The fun thing about purchasing properties in Dubai is that it can be completed so fast, and if you are not careful, you may sign a paper that will eventually work against you. The NOC shows that there is no pending liability on the property and that it is free to be transferred. Also, please ensure that an opt-out clause is included in the MOU of your mortgage otherwise, you may not be able to retrieve your deposit money if the transaction goes south.
To sum up
There you have it, 5 primary tips to aid you in your search for real estate in Dubai. Always remember that it is better to take precautions and to be on the safer side of the law because you won’t be able to reverse it like returning the pedestal fans. All the best with your purchase!