Buying a home in a beautiful city like Dubai is indeed a dream come true. The city nestles in itself various residential projects that have carved a reputation for offering luxurious units that come with the latest amenities and facilities. Some of these are waterfront development projects that provide residents with the serene views of waters right from their residences.
Having said that, for a first-time buyer, the process can prove to be a bit daunting. To make things easy for you, we have jotted down some handy property buying tips. Take a look at them:
Organise your Budget
To start with, you need to thoroughly organise your budget. Set aside the amount for buying a property, and make sure there’s enough left for you to tackle an emergency crisis. Furthermore, the actual price of the property shouldn’t be the only thing you need to consider here. There are numerous other expenses that you will incur when you’re buying the property. These include maintenance cost, agent’s fees, DLD fees etc. So, take into account each and every factor and organise your budget accordingly.
Manage Down Payment
Even if you are opting for a mortgage loan, you would still need to pay the down payment for the property. This amounts to 25% of the total cost for expats. So, before venturing into the Dubai property market, it’s important that you have managed the down payment. As emphasised above, do not make this mistake of spending every bit of income you have for buying the property. Leave some amount for the rainy days.
Try to Clear Your Existing Debts
It’s better to be loan free before applying for a home mortgage loan. This is due to the fact it will make it tough for you to manage multiple loans simultaneously. Furthermore, in case you have already taken a high-interest loan, you will find it tough to get your home loan mortgage application approved from a bank. Thus, it’s a wise idea to clear the existing debts such as personal loan, outstanding credit card bills, student loan etc., before opting for a new one.
Carefully Pick the Area
Buying a home is one of the biggest investments you’re going to make in your life, unless of course, you intend to become a professional investor. However, even then, you will face many challenges during your first time. And one of these challenges is picking the area for your first home. Since there’s so many to choose from, it can prove to be quite overwhelming for a newbie.
Take various factors into consideration, such as the proximity to facilities, growth prospects, price etc. before making this decision. If you plan to buy the home for investment purposes, picking a popular area like Dubai Marina may prove to be a wise choice. You can find plenty of off-plan projects with Stella Maris tower being the most popular one. However, it’s going to suit you only if you do not want to settle immediately as the project is still under construction.
Although Dubai is safe for investors, there’s still a chance for new entrants in the market to become victims of scams or frauds. To prevent this from happening, make sure you have verified every detail about the project and the owner. If it’s a ready property, enquire about the property deed to ensure the owner is legally eligible to sell the property. Furthermore, ensure the property is free from debts. Check the NOC for this purpose.
It’s better to hire the services of an expert during this process to save yourself from all this trouble.
Review Your Budget Again
Once you have made the down payment, it’s time that you review your budget again. It’s important to organise your monetary resources at this stage as you’ll have to make regular payments to the bank as the mortgage instalment. Thus, make a new budget and try to stick to it. It should include everything; mortgage instalments, utility bills and your routine expenses. Furthermore, it should allow you to save some money as well.
There you have it! These are some of the effective tips that you can follow when buying your first home in Dubai.