Do you have good savings and want to buy property in Dubai to invest it in a profitable way? If yes, then you must have searched the process on Google and got confused due to the diverse information. Don’t worry at all as we are going to share a complete guide on the process of buying in Dubai.
- Hire a Professional Agent
The real estate market of Dubai is growing rapidly and investors of all over the world are interested in buying property there. Dubai Land Department (DLD) keeps improving the property purchase and sale rules to make the process convenient for investors. Though the department takes these initiatives for the ease of the people, it also generates confusion. Hiring a real estate agent is the best solution of all these problems as they have the deep market knowledge and keep themselves abreast of the latest policies issued by the government. Hiring a real estate agent from recommendations is a great idea due to the previous positive experience of the referral.
- Know the Ultimate Goal of Property Buying
Every investor has some different motives of buying a property which should be clear to make the deal beneficial. If you want to buy the property in Dubai to save your investments and make them grow over the time, then do inform you real estate about it so he helps you find the property in an area where the chances of growth are higher. Likewise, if getting rent on a monthly basis is the actual reason of buying property, then prefer a habitable area where you can easily find people for rent.
- Choose the Type of Property
There are different types of properties available in Dubai which outcomes are also different to each other. Let’s discuss them briefly one by one.
- Buying land or plot in a good area is a good idea if you are not expecting monthly rent on your property. The price of the plot will increase over the time which you benefit you in the future.
- Buying a residential property gives you monthly rental income and you start getting benefits soon after the purchase.
- Different types of apartments and studio houses are available in Dubai which offers high rental rates. Likewise, one-bedroom and two-bedroom apartments also have higher chances of renting out.
- If you buy an office or warehouse in Dubai, then you can easily an agreement with the tenant and ensure consistent earning for many years.
- Select the Area for the Property
Choosing the right area is another very crucial part of buying a property in Dubai. There are different types of areas and projects available in Dubai. Some are high-end while others categorized as medium and low-end projects. Real experts recommend buying a property in a mid-income community so your property remains beneficial in both situations, i.e. economy boom and economy fall. Apart from this important factor, there are some other factors you need to consider which are mentioned below:
- Do your research about the developer and check his profile online to judge his credibility.
- Know the age of the property especially when you are going to buy property for rental income. An older property needs excess renovation and it becomes hard to rent out.
- Ask about the management company so you can determine the frequency of repair, security, cleaning, and other factors.
- Find out the historic data of the property, i.e. type of people who lived there, any uncertain incident happened there.
- Evaluate the Property by Yourself
Once you decide the property, evaluate its price by yourself. No matter how many times your agent tells you that it’s the best property for you, don’t skip the self-evaluation step. We all know that there is always a difference between asking price and actual price. Ask the price of the property by yourself from the seller and compare it with the market price. In some cases, there is about a 15% difference between asking price and sale price. Collect the historic data of the property to know more about the area and the property.
- Don’t Forget Negotiation
Negotiation is a very important step that some people ignore just because they believe that it’s not appropriate in the real estate industry. Always negotiate and try to convince the seller to sell the property at lower rates. Sometimes, negotiation techniques work and sometimes they don’t, but don’t lose hope and try to convince him in a polite manner.
- Preparation and Signing the Memorandum of Understanding
Once both parties finalize the terms and conditions of buying the property, the next step is the preparation of MOU which is prepared by the real estate agent. According to the rule devised by Dubai Land Department (DLD), both parties have to share a cheque of 10% as security at the time of memorandum and if one party breaks the commitment, the other party can take the cheque.
- Finalize the Transection
The final step is the conclusion of the transaction. Being a buyer, you have to perform some important steps such as visiting the trustee office personally. It’s necessary that both buyer and seller are present in the trustee office to submit the documents. Verification of the documents is the next step that is performed by the trustee officer. At this stage, some important cheques are exchanged by the manager including the manager’s cheque in the name of the seller, Dubai Land Department, name of the agent, and in the name of the trustee officer. After exchanging all cheques, you will get a trustee deed that takes only 30-40 minutes.
- Utility Registration
After getting the trustee deed and successfully accomplishing all the above steps, you are the new landlord. Now, it’s time to register different things on your name. Visit the nearest Dubai Electric and Water Authority Office and get the connection register on your name. Similarly, visit the gas company, chiller company, building maintenance, and register them on your name.
Congratulations! Now, you have successfully all the steps and you are the owner of the property officially. Property in Dubai comes with countless benefits and you will also start reaping them one by one.