5 things to consider before buying property in Dubai
So, you're thinking of buying a place in one of the greatest cities in the world, where everything you'd want in terms of dining, shopping and entertainment is readily available.
However, with all of these perks of investing in Dubai, comes the competitive real estate market. Whether you’re looking to buy a property purely as an investment or to live in yourself, here’s what you need to know and ask to hit the ground running.
1. Can you afford it? Do you enough saved up for a deposit?
Read The UAE Central Bank’s mortgage rules Speak to lenders to know if your income is sufficient to borrow and service the mortgage you require. A useful rule of thumb is that mortgage repayments, combined with any other monthly expenses, should not exceed 35 percent of your monthly income.
2. Money can’t buy you everything:
Before you commit to buying, establish how many lenders will accept both the developer and the development as security. Even if you’re a cash buyer, remember that if lenders prepared to deal with this property are few, then it could complicate matters when you eventually decide to sell as potential buyers may struggle to secure a mortgage.
3. Is there a lot more to a neighborhood than meets the eye?
Do your homework and check out the local area. What amenities does it offer? Are there schools? Playgrounds? Is there a shopping mall nearby? A metro station? How easy is it to get taxis? How easy is it to find a parking spot? What are your food options? What are the schools like? How about the nightlife? Work out the profile of the average resident there and what his/her approximate income level is.
4. Who is the builder/developer?
If you’re investing in off-plan property, research the developer behind the project. What have they built to date? Were there any issues with previous projects? What’s their reputation like? Will they hand over the completed property in good time?
5. What are all the charges?
As a homeowner, you’ll need to pay service charges on the property. These can add up over the months, so make sure you’re familiar with what they are and what they’re likely to stand you at per annum.
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