Tuesday, 17 November 2015

6 Things to Consider Before Buying a Residential Property in Dubai

Residential real estate prices dropped 12.7 percent year-on-year in the third quarter of 2015, according to industry consultancy Tasweek in October 2015. Buying a property is a long-term investment and you need to conduct rigorous research before you finalize your decision. Getting a property as per your requirements or choice might as well be an uphill task in Dubai. However, it is not impossible.

Real Estate: A Long-Term Investment

Before looking for property in Dubai, you must ascertain the type of house you would like to live in and one that you can afford as well. Do you want a villa or a flat? Can you fund the entire purchase or will an installment loan from a reputable bank in Dubai be of help? Here are a few things that you might want to consider before you finalize a house.

1.Mortgages can Work Well – Mortgage loans are installment loans that are to be repaid in various installments. Assess your affordability and take a loan that you can repay. Decide on the amount of loan you can afford before you go out to look for a house. This will help you put a financial ceiling to your choices.

2.      Do your Homework – It is essential to know the entire process of buying before you start. This will save you a lot of time and effort in the long-run. You certainly don’t want to miss your dream house because of some missing vital paperwork.

3.      Research the Whole City – Although you might have zeroed in on your preferable location, consider looking at other parts of the city as well. This will give you an idea of property rates and you might well find something that it is more suitable for you.

4.      Know the Fees – If you are buying property, there are community fees that need to be paid. Find out the amount and the interval they need to be paid at. You must also know the benefits covered by such community fees.

5.      Take a Legal Advice – Taking legal advice when it comes to buying property is essential because the laws and regulations of the city keep changing and you must know your legal rights and obligations.

6.      Hire a RERA Agent – It is highly advisable to check the RERA regulations. RERA is the governing body for real estate sale and purchase. You must also hire an agent to go about the entire process. Also, ensure that the agent has a RERA registration because if not registered with RERA, they are not legally allowed to trade.

You can even consider taking an installment loan through Islamic banking. In such a case, the bank purchases the house on your behalf and transfers it to your name only when you have repaid the loan fully.