Whether you are a first-time buyer or a seasoned investor, purchasing properties in Dubai is both daunting and exciting. Are you thinking of transferring a tenant to a house owner? It's going to be one of the biggest commitments of your life, not only financially but also emotionally. To make sure the whole process is rewarding and also very smooth, there are certain factors you should consider before you start your journey.
Here are the factors to consider before you buy apartment in Dubai or invest in any other properties:
Tenure: How long will you stay in Dubai and how long do you have plans to stay in Dubai? The answers to those questions are vital for the estimation of ROI. If you are not sure of your long-term plans or your commitments to the region, then renting is a good option.
Affordability: As per global norms, your monthly housing expenses must not exceed 30% of your total salary. It is also important to make a budget for blunt fees, which can be estimated at approx. 7-8% of the buying price. As an owner, you also have to consider the ongoing maintenance fees and the payment of the annual service fees.
Cost of maintenance: The maintenance charge of your property is paid to the Dubai Land Department depending on the Rera service charge and also the maintenance index. This helps in determining a specified charge per square foot, which is carried by the community. Up-to-date fees can be traced directly to DLD's website.
Rental profit: Thinking about the future, if you want to make your home an investment property, it's vital to assess whether or not the rental income will be enough for repayment of your monthly loan and maintenance costs.
Residence visa: For properties with a value of more than AED1 million, you might get authorized for a residency visa through homeownership after meeting certain conditions. There are two kinds of visas. One month of multi-entry and a year of residency. The property owners also have the facility to sponsor visas for immediate family members.
Location: It is important to consider the family size, life stage, and lifestyle. You need to check if the property is near a school or any childcare facilities. Check the daily commute times from your property to your school or work. Is public transport easily available? You should check whether the selected community has enough options.
Layout: Not all square footage is the same, and this is where correctly assessing the floor plans and the layout becomes vital. Are you searching for some open-plan living? Are you searching for an expansive backyard for your children? You are looking for some spacious living areas or you want big bedrooms.
Quality: Take into consideration the property's age. If purchasing off the pan, was the property built by a renowned developer? If you are investing in a secondary market, check if the property needs some renovations.
Conditions of the market: Stay up-to-date with ongoing market trends in your selected community to get the best real estate in Dubai. Is it the right time to buy? Is the price of the rental decreasing? What are the existing rental yields?
Being a homeowner in Dubai in locations like Jumeirah Golf Estates is a big milestone that requires thinking outside of your down payment. While considering making an investment in the real estate market, it is vital to assess your long-term commitment to Dubai.
