If you are interested in buying a property in the United Arab Emirates for the very first time, you most probably will be wondering where would you start and what exactly is the real cost of purchasing a property in the United Arab Emirates. You also might be wondering what the cost of selling such a property is especially in the city of Dubai. All the relatively new expatriates in the Emirates cannot possibly find any better place to purchase their first homes than to visit the International Property Show in Dubai which is almost every year.[irp]
There is good news, though, the show is not only a good opportunity for the first time buyers or newbies, it provides a perfect opportunity for all homeowners and prospective homeowners alike to find the best property according to their budget. This is due to the fact that the several developers and builders showcasing their work at the show are providing properties for every budget, which can help the buyers end up getting a steal deal. Amongst these great deals is also the modern trend of sustainable green or eco-friendly houses which has become a huge trend in the property market in the Middle Eastern region. The show also provides an excellent opportunity for the buyers to question the experts or representatives about what obstacles you might be facing if you are to purchase that one property that has caught your eye.
If you are planning to invest in real estate in Dubai, keep in mind that the minimum value of a studio flat in the main areas of Dubai is from AED 700,000 to AED 1 million. But if you want to take visa related to property ownership, minimum investment required is AED 1 million.
What most experts will tell you is that when you are allocating your budget it is best to allow 10 percent to be left out for the fees which will be paid to the conveyor, lender, estate agent, developer as well as the Dubai Land Department. The Dubai Land Department has recently New cap on the UAE mortgages, which basically means to the buyer is that they doubled their fee for the transfer of property from 2 to 4 percent of the value of the property.
The buyers will also be needing cash up front in order to put down the initial deposit sum of 25 percent. An example of how the usual home loans work will be; if you are to borrow a sum of AED 2 million for a time period of over 20 years at an interest rate of 5 percent, you would be paying a grand total sum of AED 3,167,788. This makes the total amount paid as interest, AED 1.17 million.[irp]
You will also need to add on the ongoing costs, for example, the developer’s annual service fee, utility bills such as water, power etc. as well as the maintenance charges.
However, do not be discouraged from purchasing a property as you will still be saving a lot of money in comparison to living in a rented house. Go prepared to the Property Show and you will have all properties in Dubai under one roof and take some cash in case you want to put down a deposit.
Source: Saudi Gazette