Whether you are a seasoned or a first-time investor in the middle east, more so in UAE, owning a luxurious residence can be a good deal. The availability of beaches, malls, and plenty of high-end restaurants makes the property market in UAE thrive at a high rate.
But to ensure you own the property you envy, there are factors you need to consider. Our resident property research will provide you with essential and the latest unbiased market information on various factors to consider when buying a home in Dubai.
What Should you Consider:
When buying a home, the upfront fees calculated at a range of 7-8% of the buying price should meet your desired budget. The global norm defines affordability as total monthly housing expenses that should not surpass 30% of your monthly salary. It would be best if you consider all the maintenance fees and annual service fees that come at an affordable rate.
2. Your Tenure in Dubai
How extended is your stay in the city, and how long are you planning to call Dubai home? Giving the answers to such questions is essential before investing in the home property. It is vital to consider the possible time on return of investment. However, if the stay is not a long-term plan, renting can be a suitable option for you.
3. Rental Yields
If you are an investor or looking forward to turning your home into a prospective investment property, it is vital to assess the future rental income. That will give you insight into whether the income will be sufficient to cover your monthly maintenance expenses and monthly mortgage repayment.
4. Your Savings
How much you have in your savings to fund your project is an essential factor to consider. It is a consideration since buying a home in Dubai will require you to make a down payment. According to UAE Central Bank Regulations, the least deposit required for ex-pats is 25% of the buying price on properties valued below AED 5 million and 20% for nationals.
You can not fund a down payment with a loan obtained from a local bank. Therefore, it means you can only support it from your savings. Fortunately, a personal loan can fully finance the upfront transaction costs, bank fees, and agent fees.
5. Residence Visa
In UAE, if you own property worth AED 1 million and above, you can be entitled to a residence visa through homeownership subject to certain conditions. You can either get a 6-month multi-entry or a 2-years residency. The property owner is also entitled to sponsor a visa for immediate family members.
Additionally, properties worth AED 5 million, with no mortgage attached and have a retainment period of at least three years, may fall under an entitlement of 5 years resident visa subject to certain conditions.
Doing due diligence is an important aspect when buying a home. You should consider the size of your family, the lifestyle, and the stage of life. Some critical facilities like hospitals and schools should be in proximity to the property location. Consider the means of transport accessibility, restaurants, cafes, nightlife destinations, and entertainment facilities.
Becoming a real estate investor or homeowner is a costly affair that requires enormous funds as a downpayment. Therefore when considering buying a home in Dubai, assess the real estate market first. Then analyze your monthly maintenance and service fees.