Why buy property in Dubai?
Are you still trying to earn a living through a single mode of income? With increasing workload and inflation rates, it is becoming hard to survive in this economy. A single medium of income just isn’t enough anymore. Therefore, people are now investing more to generate a side income source, or to just save taxes. However, the age-old dilemma is, “where to invest?”. Well, while there are various options in the stock market, there is ample risk as well. Therefore, it is wise to put your money into something which appreciates over the year. Buying property in Dubai is such an asset whose value shall increase multifold, given the mature real estate market of Dubai. However, if not done properly, it is just as easy to lose money as it is to gain through investing in property.
Risks of buying property in Dubai
One of the major factors, of the few risks that involve buying property in Dubai, is the ROI and the price surges. Although Dubai has the highest rates of rental yields, a significant amount of time is needed to gain a return on investment. And this return shall also vary depending on the property type and the location. For example, a smaller apartment in Dubai Downtown shall have an effective ROI within a few years. But a cheaper villa by the Dubai Marina Bay may take a lot of years to get the ROI rolling.
Also being one of the most mature real estate markets in the world, with increasing waiting time price surges occur in property value. Dubai is considerably cheaper than San Francisco, Shanghai and even London. Therefore, the property values can increase as much as 50% at a time. Thus, with an excess waiting period, excess purchase value can also occur.
How to buy property in Dubai?
Buying property in Dubai can involve a lot of hassles when done independently. Therefore it is always preferable to hire a realtor. Of course, one should only hire recommended real estate brokers with experience and authenticity. This way one can ensure that they shall receive excellent service and not get cheated on. Top Line Real estate brokers have been in the industry for over two decades and have had hundreds of customers benefit from our services.
Apart from getting a reliable real estate broker, you shall also need considerable planning on your part as well. Here are some tips that shall help you…
Things to do before buying property in Dubai
Dubai is a paradise for people wanting to invest in real estate. The tax-free rental yields and the mature and transparent real estate market makes it easier for all buyers. Moreover, Dubai is the first Emirati to allow foreign nationals and expatriates for buying property in Dubai. Before this, buying property in the UAE was not permitted to foreign nationals. Due to this revolutionary decision, Dubai has now opened its doors to loads of foreign investment. Many expatriates are working in the flourishing corporate industry of Dubai and foreign nationals are now free to own property in designated areas.
However, before buying property in Dubai one must consider the Dos and Don’ts of the process. Buying property anywhere in the world is a tricky and cumbersome process. And Dubai sadly isn’t free from all the woes of property search and investing. But if one is cautious and meticulous one can be successful in one’s venture in investing and buying property in Dubai, in no time at all. Some of the tips to keep in mind while looking for property around Dubai:
Check your credit score before buying property
A credit score is a numerical expression of your financial credibility based on your payment history. It is based on a number between 300 to 850 and is calculated through timely debt payments, advance payments and other relative payment histories. Bad payment behaviour can lower one’s credit score significantly. When thinking of investing in property in Dubai, it is imperative to have a good credit score. It not only increases one’s chances especially if one is a foreign national it also helps secure a considerable mortgage.
Draw up a house budget
Keeping a budget and sticking to it is very important when buying property in Dubai. As Dubai is a real estate haven, one shall find all kinds of property decorating the lanes of Dubai City. from luxurious penthouses to gorgeous villas to stunning waterfront apartments. Dubai easily captivates you. But this may lead to you spending more than you intend to on a house that you cannot afford. Drawing up a house budget will save you a lot of trouble and help you find the house that is just right for you
Decide upon the location and type of property
If you are a citizen of Dubai or the UAE, you are allowed for buying property in Dubai in almost all of the districts. But if you are a foreign national or an expatriate then you are only allowed to own property in certain districts, like the Dubai Downtown, Dubai Business Bay and Dubai’s International Financial District, e.t.c. and depending on your budget you can choose from the various types of villas, apartments, and penthouses.
Know about the amount of mortgage you can secure
Depending on your collateral and your credit score, you can know about the amount of mortgage you can secure. Depending on this mortgage and your house budget you can buy your dream house that is representative of your personality.
Get a reliable Broker
The final and most important step of buying a property in Dubai is to have a reliable and trustable Broker. A broker shall help you browse various options that suit your budget and personality. Top Line Real Estate Brokers have years of experience and expertise searching for properties that suit your needs and wishes…
Best places to buy property in Dubai for 2021
Now that you know what preparations you need to take for buying property in Dubai, you should look for a location that suits you. Dubai with its vast culture and global appeal has a variety of locations for everyone. However, choosing a location for your property should be as much of an emotional decision as it is strategic. Even if you are just buying to rent the property out, you should buy a property in which you can invest yourself. A personal attachment shall help you enhance the living space making it more valuable.
Dubai Marina and Downtown Dubai have some of the best apartment buildings in Dubai. It is a great location to buy smaller or luxury apartments that can be rented out easily. The Palm Jumeirah or the Damac Hills have slower and sustainable lifestyles with cheaper villas and gorgeous sceneries. Although properties in these locations have a slower rate of ROI, they are worth every penny you spend on them.
Cost of buying property in Dubai
The cost of property in Dubai shall completely depend on the location and the type of property. Smaller apartments in the business bay or downtown will cost less but shall have a huge turnover value and rental yield. There are various affordable beach villas for sale in Dubai as well. Both the Palm Jumeirah and the Dubai Marina are great locations for said beach villas. The smaller apartments can start as low as AED 850,000. And the luxury property can cost as high as AED 93,330,000. So depending upon your budget and purpose you can choose from the variety of price points that Dubai has to offer.
Buying a property in Dubai with the aid of a mortgage
To buy a property a hefty amount of money must be spent. And unfortunately (or fortunately) most of us do not have that much sum lying around. Because of this, we have to get a mortgage from a bank or a house loan, to buy the property. A house loan will help you buy the property immediately. And the installments which you pay shall be huge tax savings. However, to get a mortgage, you must show the bank proof of stable income. UAE nationals shall require a monthly income of AED 7,000 whereas ex-pats and foreign nationals shall require AED 10,000. Apart from this a good credit score and viable visa (for ex-pats) are also necessary.
Process of buying property in Dubai
The process of buying property in Dubai is mostly handled by the real estate broker whom you have instilled. The agent produces before you various options according to your budget and lets you choose from them. And after you have chosen a few property options, you can go and do a little field visit. This shall also depend upon the regulations of the house owners. Ownership isn’t given until the mortgage is approved and the house owners get a time frame to clear out belongings.
Buying property in Dubai for Expats and Foreigners
Dubai is a haven for all around the world. Being a cultural and corporate hub, many expatriates and foreign nationals have chosen to settle down in Dubai. And the Dubai government allows expats to purchase freehold property in Dubai. But, an expat can get as high as 80% of the property value for houses priced below AED 5,000,000. They have to arrange for the rest of the 20% to secure a mortgage. Then only can they get possession of the property.
Freehold vs Lease in Dubai for Expats
Expatriates are often buying property in Dubai due to their work or frequent visits. However, one has to consider whether they should really invest in a house or just lease one. Both the options have their pros and cons. The Dubai government allows ex-pats to buy only freehold property. This means it is ready for possession after buying, unlike off-plan properties. These properties often cost a lot. If you are out of the city majority of the time, it means high maintenance costs with less lifestyle value. Leasing a house costs much less and allows ownership till 99years. It’s hassle-free and more convenient. But one wouldn’t be able to pass it down to the next generations as an inheritance.
How can we help in buying property in Dubai?
Top Line Real Estate Brokers help you consider the several factors that are involved in buying property in Dubai. And with our two decades of experience and expert service, you are guaranteed to get your dream house. We provide real estate buying solutions and supervision. with our wide variety of residential and commercial options, you can choose to buy, rent or lease. We as a team are always there to provide you with the best service possible!