So, you’ve decided to go for it and buy your first property in Dubai. Congratulations! The upside of owning a property in Dubai can be immense, avoiding costly rent, landlord headaches and uncertainty, as well as offering impressive rental yields and long-term financial security.
However, as with all of life’s major decisions, a bit of homework and market knowledge can go a long way to avoid unforeseen obstacles and to make sure first-time buyers successfully and quickly navigate any specific local regulations and Dubai Land Department procedures.
How to buy a property in Dubai?
Here, Laguna’s experienced team offers up its five tips for success.
- Research always pays off. Spend some time looking into different markets and locations to identify the best option for you. Familiarize yourself with Dubai’s different neighborhoods, accessibility, and details such as public transport, amenities, lifestyle, and developer history, and pay a visit at different times of the day. Check property values online with reputable sites, and chart the recent volume and value of transactions.
- Set a budget. It’s very easy to get carried away, so take stock of your income, expenses, and savings and set a realistic budget for the purchase. It’s easy to get carried away with a dream purchase, but take a conservative view and leave some cushion in your savings. Also, consider the various fees involved in a transaction, which are outlined below.
- Deposits as per Agreement of sale between Buyer & Seller
- Transfer fees with the Land Department
- Connection fees for electricity and water authorities
- Community service fees
- Mortgage application fees (if required)
- Misc admin fees to the Land Department
- Agent commission
- Get mortgage pre-approval. It’s good to be ready to move once you find the ideal property, and having a pre-approval letter can give you more bargaining power when making an offer. Contact a few banks to compare mortgage rates and terms to select an option that works for you. Typically, the below documents are required for the approval process:
- A salary letter from your employer
- Any salary slips you might have received
- Bank statements of the last six months
- Passport copy with both a photo and visa page
- Copy of Emirates ID
- Copy of current credit card statements
- Proof of address
- Hire an agent. A good agent will successfully guide you through the search process, making it efficient, enjoyable, and smooth. Set a brief with the agency and clearly set out your expectations so that they can help you identify, negotiate, and close the transaction.
- Don’t skip the last details. Before buying a home, it’s important to have it inspected by a professional to identify any potential issues or repairs that may be needed. A property inspection can give you peace of mind and help make an informed decision if it really is the dream home worthy you’ve worked so hard to achieve.