Your Guide to Owning a Property in UAE

BUYING A HOME is one of the most significant investments you'll make in your lifetime. It is not only an emotional decision but also one that requires careful planning. This planning involves saving enough money for a down payment and covering other associated costs.

For many expatriates, owning a home represents stability and a tangible piece of their hard-earned success. However, for those with blemished financial backgrounds, this dream can seem frustratingly out of reach. The good news is that homeownership is still attainable, even if your financial history isn't perfect.

Read on for some key tips to make your search as stress-free as possible.

SET A CLEAR BUDGET

Establishing a clear budget is essential for narrowing your search parameters and preventing overspending on your new property.

When calculating your maximum spending limit, make sure to include all associated costs such as closing costs, moving expenses, and ongoing maintenance fees. Research comparable properties in the area to guide you on the available options within your chosen price range. Knowing how much you can allocate to buy a house will help you narrow down your search parameters accordingly.

Take into account registration fees, transfer taxes, service charges, broker fees, legal fees, and any other related expenses that may arise during the purchase process. This way, you can avoid any surprises later on.

CHOOSE YOUR REQUIREMENTS

Before buying a home in Dubai, it is crucial to determine your requirements. Consider your lifestyle, preferences, and priorities carefully.

If you value spacious living and outdoor areas, a villa or townhouse might be the ideal choice. On the other hand, if you prefer the vibrant energy of city life, an apartment in areas like Downtown Dubai or Dubai Marina might be more suitable.

Understanding your requirements and finding a balance between space and location is key to finding the perfect home tailored to your needs in Dubai's real estate market.

RESEARCH MORTGAGE, LOAN OPTIONS

If you're planning to finance your home purchase through a mortgage, getting pre-approval for a loan is highly recommended. This initial step clarifies your borrowing capacity and streamlines the buying process, allowing you to proceed with confidence.

Instead of relying solely on recommendations, take the time to compare mortgage offers from various banks and financial institutions. This comparison helps you identify the most favorable terms and interest rates tailored to your specific needs. Avoid making hasty decisions based on incomplete information by thoroughly familiarising yourself with the available mortgage products and repayment methods.

UNDERSTANDING DUBAI’S PROPERTY LAWS

If you are buying property in Dubai, it's essential to understand the relevant laws before investing in the real estate market. One of the key decisions you'll need to make is whether to opt for freehold or leasehold property ownership. Here's a brief overview of these terms:

Freehold: Freehold means you own the land and have full rights over it.

Leasehold: Leasehold means you are leasing the property from its owner for a fixed period.

— kushmita@khaleejtimes.com