|Buying Property Tips#1: Choose the Right Location|
|Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.|
|Buying Property Tips#2: Study the Local Market Dynamics|
|It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.|
The Arab world was once an unpopular place for Real estate investment for foreigners as there were several laws that severely restricted foreign ownership. However, in 2002, the Arab government decided to allow freehold ownership to non-GCC residents, which simply means that they allowed foreigners to have full ownership of the property and land for the first time in a designated land. The government permitted that the foreigners could buy, sell, rent or lease properties, which made the Middle East, especially Dubai, an immensely popular destination for real estate investments.
If you are planning to buy property in Dubai, then you might have just simplified your hectic task, as purchasing a property in Dubai is simple compared to several countries in the world. Below mentioned are some essential tips for buying a property in Dubai.
1)Read and understand the contract carefully
In Dubai, the purchase of property is accompanied by legal documents that may be Sale and Purchase Agreement (SPA) or Memorandum Understanding (MOU) between the buyer and the seller. These documents outline all the terms and conditions defining the responsibility of a Buyer and Seller in completing the transfer of the property title/ownership from the seller to the buyer. Make sure that you stand by the responsibilities outlined in the agreement and do not sign the documents unless you understand and agree all the terms and conditions mentioned in the documents.
|Buying Property Tips#3: Choose the Right Property|
|Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.|
|Buying Property Tips#4: Do the Math Properly|
|Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.|
|Buying Property Tips#5: Consider Additional Expenses|
|When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.|
2)Carefully Understand the purchasing process in Dubai
You can buy property in Dubai either 'off-plan' from the developer or 'resale' from a private seller. When you purchase 'off-plan' from a developer, you will have to submit your passport along with the reservation form that outlines the terms and conditions of the deal. Also, a reservation fee of 5-15% is paid to draw up the SPA, that further commits both parties to the deal. If you buy an apartment for sale in Dubai from a private seller, an MOU which outlines the terms and conditions of the deal needs to be signed, post which the buyer puts down 10% deposit of the property price to confirm his purchase.
3) Seek Advice of the Specialist
If you are buying a property in Dubai for the first time then it is highly recommended that you seek legal advice to help you with the purchasing process. This process is not mandatory, though. However, it is advised to do so as this can undermine any potential future risks. Many of the companies registered under Dubai Land Department have their in-house property lawyers and Escrow facilities to ensure transparency and safety, both for the seller and buyer.
These tips are sure to act as your checklist when buying a property in Dubai and following them will ensure that you are taking an informed decision.
|Buying Property Tips#6: Inspect the Property|
|To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.|
|Buying Property Tips#7: Pick the Right Financing Option|
|While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.|
|Buying Property Tips#8: Invest through Equity|
|One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.|