Don’t Make These 5 Common Home Buying Mistakes in Dubai
Buying a home can be one of the biggest decisions of your life. It is certainly a life-changing event. You need to be really cautious at the time of buying a house. After all, your hard-earned money is at stake here.
Here is a bunch of the top 5 common home buying mistakes that you should not make:
Rushing with the buying process
When it comes to buying a residential property in Dubai, you must never rush into it. You need to give a good deal of thought into making a solid plan. Know your preferences well, before choosing a residential property. Do not look only into a small number of properties to make your decision. Look into more and more options. Only then are you likely to come up with the right decision?
If you rush through things, it is likely to lead you to miss out on certain prospective homes that might be more suitable for you. You must not only focus on your needs. You need to keep a check on your overall budget as well. Remember that there are several hidden costs involved when it comes to property transactions. Gain knowledge about these costs. Also, different localities in Dubai have different cost of living and service. The maintenance charges also vary from locality to locality.
So, just take your time to do thoughtful research. Try to visit as many homes as you can. You can keep a list of suitable properties. You can then weight all the good options. You might even consider revisiting those properties. This way you will have a clear picture of each home’s strong and weak points. When you move cautiously, it gets easier for you to make a good purchase for yourself!
Not doing enough research
Many home buyers search real estate listings on popular websites. This is how they intend to find a home and buy it. However, before buying a property in Dubai, one needs to know a good deal about the local market conditions. You would also be required to dig deeper into the environment of the residential locality, the history of the villa or apartment they are buying and the attitude of the neighbors. These are the necessary information that you need to keep.
A good deal of knowledge and insight can help you know the actual worth of the property they are buying. Also, you would have an idea as to how much capital appreciation you can get in a couple of years.
Gather as much real estate information as you can. Try to use reliable online tools to know how much homes are selling for in your area, at what price they are being sold and how many properties are there in a particular locality. You will also get an idea of whether the prices are falling or rising in a particular area. Also, you are likely to have an idea of the number of educational institutes in the vicinity, luxury features, and amenities offered in residential buildings along with shopping malls and general grocery stores in the locality.
Not inspecting the property well
It is more than vital to have the house inspected before buying. Though it might be a time-consuming and taxing step, you must not miss it.
You can get yourself an experienced home inspector. He is the right person who can detect major home defects such as weak walls, leaky roofs, and faulty electrical wiring and termite infestations. Thus, buying a house after proper inspection won’t hurt you financially. In case the villa or apartment needs a little work that you can afford, you can plan your budget accordingly.
Selecting the wrong house to buy
You might be blown away by a property that looks magnificent on the outside. However, the house might have certain features that might not really go well with you, at a later stage.
For instance, an open floor plan apartment may look appealing to you during the initial stage. However, once you move in, you might just be unable to place the furniture in its undefined spaces. In order to avoid this, you must see how the owner lives in a home. You can also take the time to ponder how you’d occupy the space. Think whether it would actually work for you or not.
Not getting vital things in writing
You should be aware that in Dubai, there are agents who verbally promise you a lot before buying but vanish after buying. You might even find that the promised things weren’t offered by the seller. The same applies to Dubai property developers as well. In order to avoid such issues, you must make it a point to put into writing everything.
Focus on your budget
You must find out what you can afford. You must take into account your earning potential as well as long-term financial commitments. This will help you figure out how much you can actually afford to spend on your first home. In Dubai, you might automatically be restricted to getting a mortgage worth 75 percent of the property value. However, it is in your best interest to choose a property that you're comfortable paying for. You must consider your account for bank fees, broker fees, government fees as well as the daily cost of home maintenance.
Consider funding your down payment. Being an expat, you will have to put down at least 25 percent of the property value as a down payment towards the purchase. If you are not with enough savings, consider starting a savings plan to systematically set aside a portion of your income to finance your first home. You can follow a budget to increase your savings. You can cut down on unnecessary overheads.
Try to get rid of existing debt, if any. Get your mortgage pre-approval in place. In order to secure a mortgage pre-approvals, banks will require you to submit the documents verifying your eligibility for home finance, like salary statements, letter from your employer, and copies of your passport, visa, and Emirates ID.
Here is a bunch of the top 5 common home buying mistakes that you should not make:
Rushing with the buying process
When it comes to buying a residential property in Dubai, you must never rush into it. You need to give a good deal of thought into making a solid plan. Know your preferences well, before choosing a residential property. Do not look only into a small number of properties to make your decision. Look into more and more options. Only then are you likely to come up with the right decision?
If you rush through things, it is likely to lead you to miss out on certain prospective homes that might be more suitable for you. You must not only focus on your needs. You need to keep a check on your overall budget as well. Remember that there are several hidden costs involved when it comes to property transactions. Gain knowledge about these costs. Also, different localities in Dubai have different cost of living and service. The maintenance charges also vary from locality to locality.
So, just take your time to do thoughtful research. Try to visit as many homes as you can. You can keep a list of suitable properties. You can then weight all the good options. You might even consider revisiting those properties. This way you will have a clear picture of each home’s strong and weak points. When you move cautiously, it gets easier for you to make a good purchase for yourself!
Not doing enough research
Many home buyers search real estate listings on popular websites. This is how they intend to find a home and buy it. However, before buying a property in Dubai, one needs to know a good deal about the local market conditions. You would also be required to dig deeper into the environment of the residential locality, the history of the villa or apartment they are buying and the attitude of the neighbors. These are the necessary information that you need to keep.
A good deal of knowledge and insight can help you know the actual worth of the property they are buying. Also, you would have an idea as to how much capital appreciation you can get in a couple of years.
Gather as much real estate information as you can. Try to use reliable online tools to know how much homes are selling for in your area, at what price they are being sold and how many properties are there in a particular locality. You will also get an idea of whether the prices are falling or rising in a particular area. Also, you are likely to have an idea of the number of educational institutes in the vicinity, luxury features, and amenities offered in residential buildings along with shopping malls and general grocery stores in the locality.
Not inspecting the property well
It is more than vital to have the house inspected before buying. Though it might be a time-consuming and taxing step, you must not miss it.
You can get yourself an experienced home inspector. He is the right person who can detect major home defects such as weak walls, leaky roofs, and faulty electrical wiring and termite infestations. Thus, buying a house after proper inspection won’t hurt you financially. In case the villa or apartment needs a little work that you can afford, you can plan your budget accordingly.
Selecting the wrong house to buy
You might be blown away by a property that looks magnificent on the outside. However, the house might have certain features that might not really go well with you, at a later stage.
For instance, an open floor plan apartment may look appealing to you during the initial stage. However, once you move in, you might just be unable to place the furniture in its undefined spaces. In order to avoid this, you must see how the owner lives in a home. You can also take the time to ponder how you’d occupy the space. Think whether it would actually work for you or not.
Not getting vital things in writing
You should be aware that in Dubai, there are agents who verbally promise you a lot before buying but vanish after buying. You might even find that the promised things weren’t offered by the seller. The same applies to Dubai property developers as well. In order to avoid such issues, you must make it a point to put into writing everything.
Focus on your budget
You must find out what you can afford. You must take into account your earning potential as well as long-term financial commitments. This will help you figure out how much you can actually afford to spend on your first home. In Dubai, you might automatically be restricted to getting a mortgage worth 75 percent of the property value. However, it is in your best interest to choose a property that you're comfortable paying for. You must consider your account for bank fees, broker fees, government fees as well as the daily cost of home maintenance.
Consider funding your down payment. Being an expat, you will have to put down at least 25 percent of the property value as a down payment towards the purchase. If you are not with enough savings, consider starting a savings plan to systematically set aside a portion of your income to finance your first home. You can follow a budget to increase your savings. You can cut down on unnecessary overheads.
Try to get rid of existing debt, if any. Get your mortgage pre-approval in place. In order to secure a mortgage pre-approvals, banks will require you to submit the documents verifying your eligibility for home finance, like salary statements, letter from your employer, and copies of your passport, visa, and Emirates ID.
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