The Dubai real estate is relatively a mature marketplace and gives an opportunity to build wealth and establish the financial security. The current economic condition offers perhaps the best chance for home buyers and investors to appreciate the long-term cyclical nature of the real estate market. Deciding whether to buy or lease a home is among the toughest financial decisions one would take. And as per most experts, the time is upright to invest in Dubai real estate. But is it factual for everyone or anyone?
Well, with some mathematical calculation it becomes easier for the buyer to take the call. It is imperative to consider the costs associated when deciding to buy or to lease residential Property. Fundamentals of Buying a home is certainly the biggest decision but then the home ownership comes with an opportunity to build wealth and escalate the net worth, which is important for the financial future. Another key point is that the Dubai’s real estate market is investor-friendly, strict rules and regulation formed by the regulative authority protects the investments and encourages genuine transactions, than inflationary trends. Also, for those who want to acquire home finance, loans are definitely economical at present, than they were at the peak of the market in 2007- 2008, with interest rates being striking and more contending products being offered by the lenders. With an off-plan property, buyers can get the advantage of cheaper prices offered by developers, who also offers structural payment plans so buyers can pay in segments as the construction goes on. When we talk about fundamental of buying, the foremost aspect is to understand why investing in the real estate. Always plan for the long-term appreciation as the industry is cyclical yet satisfying. Another, important is to ensure that you know what is affordable. If one has enough cash reserve, then I would suggest making the upfront payment. However, one can even consider mortgage, as the down payment will form the equity. Lastly, comes finding the right property with the right location. The correct location gives larger appreciation in capital value during the cyclic nature. It is always wise to think carefully about location, construction quality, developer reputation completion status and quality of infrastructure and building amenities. Consulting with an expert will guide you as per the requirement.
Costs of buying in Dubai
Along with the property sale price, the purchaser must have a secure fund to settle the upfront registration and associated cost at the land department, hence proper budgeting is essential when buying a property. Apart from the down payment deposit, the main cost is the property registration fee payable to the Dubai Land Department (DLD) which is 4 per cent of the value of the property. The other fees paid to the DLD, include title-deed fee, trustee fee, and a knowledge fee, which total up to under Dh 5,000. Another cost is the real estate broker’s commission fee, which is 2 per cent of the purchase price.
If a buyer takes up a mortgage, a mortgage registration fee 0.25 per cent of the mortgage value paid at the DLD. Alongside, there will be a certain fee payable to the bank like mortgage processing fee which is usually 1 per cent of the loan amount, valuation fee of about Dh 2500- Dh 3000 payable to the evaluator appointed by the bank. Besides, the banks will also calculate property insurance and the life insurance annual cost depending on the loan amount. These amounts may vary from lender to lender hence proper study is required. Certainly, there are a number of costs associated with the purchase and these must be carefully measured before signing the agreement to ensure that the purchase is within the means.
Now calculate over the years in comparison to spending close to similar purchase amount for the same period in annual rents. Eventually, one can experience that the total cost of home ownership is less under the current circumstances than the total cost of renting a similar property in the emirates.
Let our certified consultant help you to plan your investment in Dubai. 4C Mortgage Consultants provide best mortgage consultancy for a resale property, new purchase property, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on Twitter, Facebook, and LinkedIn and keep yourself updated with more home buying tips.
This post first appeared on 4C Mortgage Consultancy Blog - Latest Updates Of H, please read the originial post: here