Housing architectural marvels and world-famous landmarks, Dubai is a dream city to be in for home buyers. Everyone, who can afford, wants to buy a home here. However, entering the Dubai property market isn’t exactly easy. There’s a lot to consider and do before you could think of buying a home here. If you are not cautious and careful, you may end up making the wrong decision. And this decision could cost you a lot.

The process to buy a home is most difficult for first-time property buyers in Dubai. The reason is quite self-explanatory; it’s their first experience and they do not have a lot of know-how about the property search and buying process. Therefore, they are more prone to making common home buying mistakes that can cost them dearly.

So, if you are a first time home buyer in Dubai and want to make the entire process smooth and easy for yourself, we have got you covered. Here’s a comprehensive guide for first time home buyers in Dubai:

A Step by Step Guide for First Time Home Buyers in Dubai

Set a Budget and Get Your Finances in Place

The process to buy something always starts with setting a budget and sorting your financing, and buying a house isn’t an exception. As a matter of fact, it deserves a lot more scrutiny when setting the budget since it is going to be one of the biggest purchases of your life.

You should take various factors into account while setting the budget. Most importantly, your spending capacity, monthly income and savings. Do thorough market research when doing this. Know about current prices in Dubai of the type of property you want. For example, if you’re looking for villas for sale in Dubai, look for the prices of these units in selected areas. This will give you a fair idea about how much budget you should set.

Next, arrange your resources. It’s a known fact that property prices in Dubai are high. Therefore, you would most certainly need to take financial assistance i.e. apply for a home loan mortgage with the bank or a private lender. How much money you will get depends on various factors, including your current employment status and creditworthiness.  

If you are applying for a mortgage, make sure you have maintained a decent credit score. Otherwise, there will be a high chance of your loan application getting rejected. You can find tips on avoiding your loan application getting rejected here.

Finalise an Area

This is a crucial step; hence, it must not be rushed. It majorly depends on the fact whether you intend to live in the property or sell it. If it’s the former case, you must choose from the best neighbourhoods in Dubai that’s well-connected, offers a peaceful lifestyle and has every facility available at a stone’s throw. Of course, the budget also comes into the picture.

In case you’re buying it as an investment, there are different parameters you should consider, with the most prominent being the ROI. It goes without saying that the house should be located in an area that has the ability to generate a high return on investment.

Having said that, it’s important to know that you won’t be able to own property in certain areas if you’re a foreign national. Expats can buy properties in Dubai in selected areas only. So, it’s important to know about these communities before starting your property hunt.

Create a List of Essential Features You Want in Your Home

Once you have sorted your finances, the next step is to decide what type of property you want. You can look for apartments, penthouses, townhouses, duplexes and houses for sale in Dubai, depending on your requirements and budget range.

However, bear in mind that not every apartment or villa is the same in Dubai. They differ in terms of architecture, configuration, area covered and available amenities. So, you should make a list of essentials you wish to have in your home. This should include the number of bedrooms & bathrooms, terrace, balcony, lawn, patio, pool, views from windows, etc.

Being very clear on what you want will not only make the process easy for you, but your agent will also be able to show the right listings that match your interest.  

Check Listings

The next step is to check property listings. And for this, Zoom Property has got you covered. Here, you will find the most sought-after listings for residential and commercial properties in the emirate. The abundant filters available on our portal also make it easy for both pros and first time home buyers to find their dream home conveniently.

You can now find these listings and a lot more extensive features on the improved Zoom Property mobile application as well.

Know about the Real Cost

Most first time home buyers believe that the price mentioned at the portal is the final price of the property. However, this isn’t the case. Although there’s some room for negotiation, there are, however, some other expenses the buyer has to bear when purchasing the property. The actual cost of buying property in Dubai includes:

  • DLD fee
  • Title deed issuance fees
  • Admin fees
  • Agent’s commission
  • NOC charges

Understand the Buying Process

This is where most first time home buyers falter. Therefore, it’s important that you develop a thorough understanding of the complete home buying process.

The process basically involves four major legal steps. These include:

Creating a Buyer & Seller Agreement

Once you have found the dream home and have negotiated the price, you will have to create the buyer and seller agreement. Make sure you have read all the clauses mentioned in the agreement. You can always negotiate the terms with the seller.

Signing the Memorandum of Understanding

It is also called sale agreement and Form F. It’s the responsibility of the agent to get the contract ready for the buyer. After they have drafted it, both the seller and buyers are required to sign it at the Registration Trustee’s office. This step is done in front of a witness. Normally, the agent acts as a witness in these cases. When the agreement is signed, the deal is deemed official.

During the step, the buyer has to make a 10% security deposit to the trustee. This amount is returned after the property is transferred to the buyer.  

Getting a NOC

After signing the sale agreement, the home buyer, seller and the agent are required to gather at the developer’s office. This meeting is conducted to obtain a No Objection Certificate. It’s important for the property to be transferred to the buyer. The developer charges a nominal fee for granting this document once they have ascertained that the seller bears no outstanding service charges on the said property.

Transfer of Ownership

This is the last legal step first time property buyers have to perform in the pursuit of their dream of becoming a homeowner in Dubai. It involves meeting the seller at the DLD office. The purpose of this meeting is to effect the transfer.

Make sure that you have the following documents with you when you go to this meeting:

  • A manager’s cheque
  • Original identification documents (Emirates ID, visa and passport)
  • Original NOC
  • Signed Memorandum of Understanding

Once all the formalities are fulfilled, home buyers will get a new title deed issued in your name. This will make you the official owner of the property in question. The entire process usually takes somewhere between 2 to 10 weeks. However, both the duration and steps involved in the process may vary if you’re buying the property on a mortgage. You will have to get a pre-approval letter before starting your house hunt in Dubai.

For more information and expert guidance, you can contact Zoom Property – the leading real estate portal in the UAE.

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