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.

Marriage loans are excellent – if you’re fulfilled all the terms

Your bank may pull the plug on your marriage loan if is suspects you of certain transgressions. Read on to know more.

You’re about to throw your child a grand wedding bash, the kind of marriage party that your friends and relatives will remember forever. For this, you’ve decided to borrow from the bank, via a marriage loan that will pay for the wedding and all its associated expenses.

Accordingly, you apply for a personal loan to cover the wedding expenses. However, the UAE has now made its loan application process more stringent for personal loans, car loans and overdraft facilities, across all banks and financial institutions in the country. Hence, though you may receive the marriage loan almost at once, the lending bank or financial institution may terminate it prematurely if you fail on certain stipulated terms.

Some banks in the UAE have had a history of bad loans with expats or nationals who did not repay the loans and who either moved from the UAE or changed their jobs without informing the bank. Thus, the new norms take an undertaking from applicants that any change in their job status (and this includes if the applicant is laid off by the company or transferred to another country), whether they are leaving the country before the loan tenure is up, and whether they have raised additional funds based on the loan taken, must be intimated to the bank.

Additionally, there have been cases where applicants have transferred their salaries to another bank without informing the lending bank, or violated the loan terms such as defaulting on payments or submitting false income proofs, or fleeing the country when unable to repay the money. In all these cases, the bank will suspend and terminate the loan as is, and give the applicant a certain period of time to repay the money. If the remainder of the borrowed funds are not repaid even after this time has elapsed, the bank may seek prosecution of the applicant.

Don’t let these transgressions ruin your marriage loan – be clear about your dealings with the bank and avail of the loan only when you’re certain that you can repay it. The contract you sign with the bank or financial institution is a legally binding one and not to be trifled with. Besides, having your loan recalled and terminated will result in a bad credit rating for you – which will make it difficult to avail of other loans in the future.