Housing architectural marvels and world-famous landmarks, Dubai is a dream city to be in for home buyers. Everyone who can afford it wishes to purchase a home in Dubai. Getting into the Dubai real estate market isn’t complicated but there is a lot to think about and do before you contemplate buying a home in Dubai.
You may make the wrong judgment if you are not careful about buying a home in Dubai. And this decision may cost you a lot of money.
The process of buying a home in Dubai can be challenging for first time home buyers in Dubai. The reason is self-explanatory; it’s their first time, and they don’t have a lot of know-how with the property search and purchase procedure.
As a result, individuals are more likely to make frequent home-buying blunders that can cost them a lot of money.
So, if you’re a first-time home buyer in Dubai and want to make the process as smooth and straightforward as possible, we’ve got you covered. Here’s a comprehensive guide for first time home buyers in Dubai.
A Step-by-Step Guide for First Time Home Buyers in Dubai
Set a Budget and Get Your Finances in Place
Setting a budget and arranging finances are always the first steps in any purchase, and buying a home in Dubai is no exception. Because it will be one of the most important purchases of your life, it merits a lot more care when it comes to budgeting.
When deciding on a budget before buying a home in Dubai, you need to consider several variables:
- Your spending capacity
- Monthly income
- Savings, and much more
When doing this, conduct extensive market research. Learn about the current pricing of the sort of home you want in Dubai. If you’re looking for villas for sale in Dubai, for example, look at the costs in specific areas. This will give you an idea of how much money you need to set aside.
After that, organize your resources. Dubai property prices in certain areas are known to be expensive. As a result, you will almost probably want financial assistance, such as a mortgage from a bank or a private lender.
The amount of money you receive is determined by several variables, including your present job situation and creditworthiness.
If you’re going to apply for a mortgage, make sure you have a good credit score. Otherwise, there’s a good chance your loan application may be turned down.
Advice For First Time Home Buyers in Dubai 1 – Work out your budget
Consider the full cost of buying a home in Dubai, including legal fees, deposits, and maintenance fees, in addition to the property’s worth. If you need money, think about mortgage fees and how much you can afford to pay in monthly instalments throughout the loan.
Finalize an Area
This is an important step that should not be skipped by first time home buyers in Dubai. It is mostly determined by whether you intend to reside in or rent out the property.
If the former is the case, you must choose from among Dubai’s top neighbourhoods and best communities in Dubai, which are well-connected, offer a calm lifestyle, and have every facility within walking distance. Of course, the budget is an important consideration.
If you’re buying a home in Dubai as an investment, there are several factors to consider, the most important of which is the return on investment for first time home buyers in Dubai. The house should be placed in an area with a strong return on investment potential. Ideally where tourists visit the most.
However, it’s vital to note that if you’re an ex-pat residing in Dubai or just investing, you will only be permitted to own a freehold property in Dubai. As a result, it’s critical to learn about these neighbourhoods before beginning your home search.
Advice For First Time Home Buyers in Dubai 2 – Know why you want to buy
A property purchased for personal use differs significantly from one that is rented out, which, in turn, differs significantly from a retirement or second home. If you’re looking to buy a home in Dubai as an investment, make sure you know what the market price is and what rental yield you can expect.
Choose an area that serves your goal. If you want to get a good return on your investment as a first time home buyer in Dubai, buy a home in Dubai in established locations like Dubai Marina, which are popular with renters and have high demand, and so on.
Create a list of Essential Features You Want in your Home
After you’ve sorted out your finances and the area, the next step is to figure out what kind of home you want in Dubai. Depending on your needs and budget, you can look for apartments, penthouses, townhouses, duplexes, and houses for sale in Dubai.
Keep in mind, however, that not all apartments in Dubai are the same. They differ in terms of architecture, layout, the area covered, and amenities available. As a result, you should establish a list of the necessities you want in your home.
This should contain the number of bedrooms and baths, as well as the terrace, balcony, grass, patio, pool, and window views, among other things.
Not only being clear on what you want will make the process easier for you, but it will also allow your agent to show you the proper listings that match your criteria.
Advice For First Time Home Buyers in Dubai 3 – Figure out what you want to buy
Do you prefer a villa or an apartment? Do you prefer to live near the water or in the city? Are schools, public transportation, eateries, and shopping malls equally important to you? Answering these questions will assist you in making informed decisions while purchasing real estate in Dubai.
Check Listings and Choose a Reputed Developer
The next step is to look at real estate listings and choose a reputed developer. And ZāZEN Properties has you covered on this front. There are several property portals with numerous filters that make it simple for both professionals and first time home purchasers to locate their ideal house.
Advice For First Time Home Buyers in Dubai 4 – Look for a reputed developer
Finding an agent with in-depth local expertise is important because every area/community poses unique challenges. Work with someone who has a track record of selling properties in the area you want to buy in because they will know the ins and outs of the area and can help you get the best deal.
Additionally, examine the developer’s track record as well. Is the construction of previous structures of good quality and finishing? Have all of the projects been completed on time and within budget? Are the common areas well-kept?
Know About the Real Costs
The majority of first time home buyers in Dubai assume that the price listed on the portal is the final price. This, however, is not the case. Although there is some space for bargaining, the buyer must face certain additional costs when purchasing the property. The true cost of purchasing a home in Dubai includes the following:
- Dubai Land Department Fees
- Title Deed Issuance Fees
- Charges for NOC
- Commission paid to the agent
- Admin Fees
Advice For First Time Home Buyers in Dubai 5- Find out about hidden extras
Service charges for the upkeep of communal areas such as gyms, parks, pools, and other shared facilities will be set at a fixed fee or vary depending on the size and area of the property. This might be a big cost if you decide to buy a large house. Inquire about the average water and electricity (DEWA) bill for a property identical to theirs. Agency fees and mortgage registration costs are examples of additional costs.
Understand the Buying Process
This is where the majority of first time home buyers fall short. As a result, you must gain a solid understanding of the entire home-buying process.
The procedure consists of four essential legal steps. These are some of them:
- Creating a buyer-seller agreement
- Signing the Memorandum of Understanding
- Getting a NOC
- Transfer of Ownership
Once all the formalities are fulfilled, home buyers will get a new title deed issued in their name. As a result, you will be the legal owner of the property in question. The complete procedure normally takes between 2 to 10 weeks.
If you’re buying a house with a mortgage, though, the duration and processes needed may differ.
Advice For First Time Home Buyers in Dubai 6- Know the purchasing process
When it comes to purchasing real estate in Dubai, you have three options: buy off-plan from a developer, buy a ready property from a developer or buy from a private seller in the secondary market.
Expats will need to produce a completed reservation form, their passport, and a reservation deposit, among other documentation, when purchasing the property directly from the developer, whether off-plan or ready.
If you’re buying a resale property, you’ll need to sign a Memorandum of Understanding with the seller. As the buyer, you will be required to put down a deposit that has been agreed upon. After receiving finance, the legal transfer of deeds will take place.
In recent years, several new regulations have been enacted, including mortgage limitations, off-plan home purchasing plans, and transfer and transaction fees. Stay up-to-date with the latest regulations to make informed choices while buying Dubai properties.
If you have no idea where to begin, contact ZāZEN Properties at +97150 170 9376 for more information. ZāZEN Properties has delivered its first sustainable community development in the established Jumeirah Village Triangle community of Dubai, with over 75% already sold. Visit www.zazen.ae.
Frequently Asked Questions(FAQS)
What is the Dubai property buying process?
The property buying process in Dubai typically involves the following steps:
- Find a property
- Make an offer
- Sign a Memorandum of Understanding (MoU)
- Pay a deposit
- Conduct due diligence
- Transfer of ownership
How to find property buyers in Dubai?
There are several methods you can use to find property buyers in Dubai like:
- Real estate agents
- Online property portals
- Social media
- Property exhibitions
What is the Dubai properties NOC procedure?
In Dubai, a No Objection Certificate (NOC) is obligatory for specific property-related transactions such as transferring or selling a property. To obtain a NOC, the general steps include requesting it from the property developer, providing essential documentation, paying applicable fees, receiving the NOC from the developer, submitting the NOC and other transaction documents to the Dubai Land Department, and having the DLD review and approve the NOC and accompanying documents.
How to check your credit score in UAE?
There are three main credit bureaus in UAE that offer credit reports and credit scores to individuals. These credit bureaus are:
- Al Etihad Credit Bureau (AECB)
- Credit Bureau Dubai (CBD)
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