Top 5 Mistakes For First Time Home Buyers In Dubai
Home is not a mere infrastructure that you have built with beams and walls, but is also your most relished and safest shelter for a lifetime. Many of us dream about buying our own home, which is a big commitment.
Earlier, the most favored destination for buying a holiday home was in Dubai, as this Middle Eastern city had the reputation of being luxuriously diverse and appealing. With changing times, foreigners are considering buying a house in Dubai for attaining an exciting life and social security in the future.
Now, you need to make proper plans and execute them perfectly to ensure that you succeed in your Dubai endeavors.
Dubai is a foreign place for outsiders, which mean chances are higher that you will end up making mistakes while buying your property in Dubai despite all the planning that goes into it.
Make sure to read the full guide on How To Buy A Property In Dubai before taking the decision to buy a property in Dubai.
Here Are The Top 5 Mistakes For First Time Home Buyers In Dubai:
1. Not Checking All the Loan Options:
This is the first mistake ignorant people make. They will rush to the bank that their relatives and friends have suggested without doing any necessary research or calculations.
Most properties are actually bought using mortgage loans and not cash. Borrowing from the bank definitely has its own pros and cons, so it is important that you plan well to avoid dangerous financial hazards.
You should look into your finances first and calculate the cost of buying a house in Dubai against your budget before jumping into buying your dream house. Check out several banks for their various mortgage options, and carefully weigh all the offers before selecting the best one suitable to your needs.
2. Having No Savings to Protect Your Back:
If you wish to buy a home in Dubai, you will need to have some savings to tackle the additional costs of your property that are not included in the selling price.
No bank will be willing to cover all these additional costs for you. The bank would bear 70-80% of the property value, and the rest will be left with the buyer to pay it out of his own pocket.
Even if you decide to spend from your savings at this point, make sure that you are not spending it all. You should not stand empty-handed without cash or liquid assets, because it can be too risky for you to handle future emergencies.
3. Making Adjustments on the Location or Wrong Areas:
Your dream house should be perfect and flawless, but again make sure you are not compromising on the essential facilities needed for a comfortable living.
Be wise and select a location where there are uninterrupted electricity, water, and gas supplies, and a place which certainly has shopping malls, hospitals, and schools nearby.
My top location recommendation would defiantly be The Palm Jumeirah, the iconic man made island is fully developed with all the facilities and amenities you will ever need.
4. Not Knowing the Additional Expenses:
The buying cost of your house does not only include the payment for your property, but also involve additional expenses such as Dubai Land Department fee, property registration fee, real estate agency fee, mortgage registration, and processing fees, etc.
You should research in details about these additional costs and plan ahead before buying the property.
5. Overlooking the Additional Responsibilities:
Once you have bought your dream home, a bunch of new hardships could come crawling in!
This time you will need to manage the costs of repairs, monthly bills, property taxes, home insurance, etc. The additional home maintenance cost can be overwhelming which would force you to buy home décor, home appliances, home furniture, and other home accessories in Dubai, and the best part is that you can order all of these online.
Don’t overlook your additional responsibilities and be prepared for them right from the beginning.
If you require any assistance in the Dubai Real Estate Market please feel free to reach out to me on:
+971 58 297 8004
Mohamed.zidan@engelvoelkers.com
