The enthusiasm of buying a home in Dubai, a world class metropolis is in itself an accomplishment. But if you are not careful, the entire process of buying a home may become full of trouble and tension. So, the following points must be considered by every buyer when planning to buy a home in Dubai.
- Searching for a Home Without Obtaining a Pre-Approval Letter:- In Dubai, properties are bought mostly through mortgage as it is considered the easiest and safest option. The first step in this process is to obtain a pre-approval letter from a lender. This ensures the maximum upper limit that a lender is willing to lend to the buyer. The lending amount is decided after studying the buyer’s credit score, monthly income and other present debts. This helps the buyer in determining the budget for the purchase of a home; keeping in mind the amount of down payment he has to pay at the time of booking a home.
- Inadequate Research:- Buying a home is not a thing that you do often. Therefore one should research carefully all aspects related to it whether it's affecting it in short term or the long term, directly or indirectly. Research starts with analysing the various mortgage options available in the Dubai market and picking the one which is most beneficial to your situation. You should also clearly set your requirements for an ideal home, like the type, size, location of the property and additional amenities which you like to have.
- Directly Contacting the Listing Agent:- One thing that most of the time a buyer ignores is that while dealing directly with a builder, the employee will always keep the company’s interest first and you may lead to buying a property at an appreciated price or compromising on benefits which you might have availed if purchased through agents or broker companies. The broker or agent is well aware of market practice, actual cost location and construction-wise, and government rules and taxation policy. Thus hiring an agent or broker company will save you from wrong decisions and financial loss.
- Not Inspecting the Property or Neighbourhood of It:- Another major mistake the buyer commits is not inspecting the property or its locality. Most of the time there is a difference in photo or video of the property and its actual condition. The best option is to hire a home inspector. It may look like an additional cost but are worth keeping in mind the financial lost one has to bear in case of a wrong decision. On a physical visit, one can scan and analyse the locality and better decide on its suitability.
- Taking No Notice of Additional Cost:- This is a common mistake done by most buyers in Dubai. There is always additional cost apart from the actual property price which the buyer must pay to finalise the purchase. There is a DLD fee, property registration fee, DEWA fee, mortgage registration and process fee and agent fee if hired.