Dubai represents luxury and a high standard of living, with tall buildings. It is one of the fastest expanding cities in the world with jaw-dropping property projects. Therefore, it is natural to want to own a Dubai property. The following are a few factors to know before investing in Dubai.
You cannot think of buying property in Dubai without knowing about the laws. The primary requirement is to educate yourself about Dubai’s transferring and purchasing property laws. Every country has its compliances and regulations, and UAE is no different. UAE recently introduced revised rules in 2021 to increase the sale of properties.
If you are a non-resident or purchasing a property from beyond international lines, you must learn the terminologies used. You will encounter these terms in documents or verbal communication too. Furthermore, specific terms are also required for renting residential or commercial properties. The owner requires proper comprehension of the property to answer questions accurately.
The questions can take different turns depending on the tenant. Many may seek a place for employment. On the other hand, other individuals are looking for a home with their families. Therefore, due diligence is most important.
The property owner must also hire a licensed realtor approved by the authorities and governing bodies. The client can request the realtor’s card that will mention their credentials. If you notice the section is empty, the risks increase.
There are different procedures for buying property in Dubai, such as off-plan or resale. The former off-plan involves buying property from a developer directly. The process also requires the property owner to submit their passport. Furthermore, they must sign an affidavit stating they agree with the terms and conditions. Lastly, the property owner must also pay a reservation amount to help draw the Sales and Purchase Agreement.
Using the offset plan is straightforward and less time-consuming. The buyer will instantly book the property. Furthermore, the process can be done remotely.
Resale involves buying property in Dubai with a Memorandum of Understanding. The buyer and seller will sign the agreement that will mention the terms of the sale. In the next step, the buyer will transfer a ten per cent deposit of the total price to confirm the purchase.
The Memorandum of Understanding can be executed by the buyer and seller or their power of attorney proxies. The latter is a common practice when the parties are out of the country. The title and property ownership will happen in one to two days. However, it may take longer if the deal is complicated.
Mortgages can complicate purchasing property matters. Therefore, misunderstanding the clauses can increase the risks of managing properties. Assuming the agreement mentions a mortgage based on the minimum amount, you wish to elongate the payment period. In that case, the Memorandum of Understanding mentions an opt-out clause.
The clause will protect the buyer from the minimum payment made earlier against the property. It will also safeguard the investor if the property devalues in the future. The absence of the clause means the buyer cannot alter the payment amount. As a result, it complicates the deal from moving forward.
If the deal breaks through, the buyer loses the advance. The amount equals ten per cent of the market value of the property. Therefore, the interested parties can revise the agreement to ensure it represents their financial stance and interests.
• The investor must be aware of the clever marketers that promote amenities in the property. Unfortunately, the promises do not actualize. The buyer must read the advertisement and sale contract very carefully. They can hire legal assistance if the language is too complicated for them. Complicated property investment is never worth the risk!
• The renter’s yield for Dubai properties is 9% on an average. The statistic is higher than London and New York. However, the return on investment is not consistent throughout Dubai. The yield varies from sector to sector. Therefore, the buyer must undertake market research to maximize the rewards.
• Building a home or property in Dubai also requires researching contractors and builders. Stories of builders abandoning the projects in mid-stages are prevalent. Therefore, the individual can request the builder for previous references to establish credibility. Referrals and seeing previous complete projects will ensure high yields.
• Undoubtedly, Dubai has many excellent parts. There are luxurious apartment buildings with tennis courts and pools. The neighbourhoods in these sectors do not lack amenities and always welcome new buyers. Unfortunately, purchasing in these neighbourhoods will not yield a high return because the maintenance costs are overbearing.
We can agree UAE has a very high standard of living. However, there are still areas where individuals can purchase affordable properties to experience the same amenities. The prices are lower than in Dallas, Texas, Los Angeles, and San Francisco.
Experts predict that the UAE’s property prices will increase as its economy continuously expands for the next seven years. The property owners can now purchase properties and sell them for a profit later. However, we insist they consult with financial advisors for a detailed understanding.
Dubai is a very safe city. The law governing ministries does not segregate locals from foreigners. As a result, the investment stays safe too. Dubai has no civil unrest or extreme regime changes that will fluctuate market prices.
Generally speaking, the property sector in Dubai is expanding. The investors look forward to a bright future despite the daunting cons. Visit https://trpe.ae/ if you are looking for properties to invest in that feature views, locations, and amenities. Our experts will help you understand the fine agreement print to remove or add clauses.
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