InDubaiBuying a property is not a trivial matter as buying a property in Dubai is already tricky because there are a lot of things you should consider before buying a property in Dubai. Get a property, then that property should also meet your needs.
There are a lot of costs involved in buying a property in Dubai, but don't worry. Heavy taxation is not one of them. Here, there are also some other expenses that should be mentioned when buying a property. Sometimes we don't think about these expenses, and your budget may increase.
Why we should buy property in Dubai
Dubai's luxurious lifestyle isn't the only thing that attracts investors; There are many benefits to buying a property in Dubai, and investors appreciate some of them. Here are some of the reasons why it's best to own a property in Dubai
There are no taxes
The UAE and Dubai** do not tax property. There are fewer places where you can get this tax benefit. Buying a property in Dubai will help you save 10-20% on taxes that you might spend in other countries.
Community culture
Out of the total population of Dubai, only 10-12% of expats from Dubai are foreigners who have invested and settled here to build a better career. But don't let that little number fool you; In every corner of this city-state, you can see Dubai's cultural heritage.
Job Opportunities
Dubai may be the only fully developed country, but it is expanding further. This development has led to many career opportunities for different professionals. Dubai's compensation and work model is healthy, and there is no such thing as a hostile work environment or employee culture.
A luxurious lifestyle
Luxury is the second name of Dubai. Everything you see in Dubai is luxurious. Even the home you buy will be made of luxury materials and property. The cars, buildings, beaches, and attractions are world-famous.
Tourist attractions
No matter where you go, there is at least one tourist attraction in Dubai that has enough for a whole weekend or a holiday. Dubai's tourist attractions are not expensive, empty your pockets. You can plan a fun day out with your family on Sundays or holidays. Burj Khalifa, Palm Beach, Dubai Mall, and Dubai Zoo are must-see attractions.
Some unexpected costs when buying a property in Dubai
Yes, just like anywhere else in the world, unexpected expenses occur when buying a property in Dubai. Here are some things to look out for:
Brokerage commissions
Whenever you are considering buying a property in Dubai, you must consider buying the property through a certified and experienced broker or **person. Why hire a broker or **person? The chances of fraud are gradually diminished as they can give you a physical overview of your property. The agent is good at finding a property**.
In Dubai, brokers can usually charge between 1% and 4% of the brokerage fee (up to a maximum limit). Brokers with higher ratings charge more brokerage fees because they promise to show you quality properties. Save 1-3% on total property costs to prepare for brokerage fees. Why do you need to go to so many places to find a property for yourself when you have an agent doing it for you?
Repair costs
Maintenance fees in Dubai are high, and these are charged monthly or annually in Dubai. Why do we pay these fees? Because the building and society you live in need of maintenance and need to be paid for overall services such as security guards, floor cleaners, receptionists, etc.
As Dubai offers a high quality of life, this high quality of life is accompanied by a higher ** as you will pay for the maintenance of more facilities provided by the developer or real estate builder. These fees include electricity, gym fees, pool fees, play area fees, and ground utility fees.
Transfer fees
When buying or ** a property, there is a fee to pay to confirm that the two parties have exchanged the property for financial assets or money. This protocol model requires a specific fee to prove that the transaction is legitimate.
It is always advisable to pay a transfer fee to any property in Dubai and note that this particular amount is a transaction fee that will be used sooner or later. If the developer doesn't mention transaction fees, it's a good idea to ask if they have such fees.
Interest on the loan
If your repayment is less than 100%, getting a loan is the only option. Banks will charge higher interest for longer repayment periods. Usually, the interest on a property loan is 10-20%, and customers can pay these loans quickly with the option of a monthly subscription. Most people have to consider the interest earned through a loan when buying a property in Dubai.
In order to avoidProperty in DubaiWith the high interest rate on the loan, the best thing you can do is make a large down payment. When you make a larger down payment, your loan amount decreases and the interest decreases.
Mortgage
The bank or money lender keeps something in exchange for a mortgage. Mortgages in Dubai are standard as most of the loans in Dubai are obtained through mortgages. The financial institution will only pay the fee if you want to keep the mortgage.
In Dubai, cars are a common element of mortgage loans because cars and vehicles have a good value and can be handed over to financial institutions to exchange money. Another collateral element in Dubai is **, which is a powerful asset that can be used to get a large loan in Dubai.
Transfer shipping costs
If you are already living in Dubai or moving to Dubai, you will still have to pay to have goods and services shipped from your old apartment to your new one. Here, observe the charges of packers and porters; In Dubai, packers and movers charge based on the weight they have to carry and the distance they have to move.
The cost of packers and movers in Dubai is high because it is a precarious job, but if any of your goods are lost or damaged, they will all be covered by an insurance policy. Moving to Dubai from another state in the UAE is also challenging due to the distance.
Interior design
The interior décor of each apartment in Dubai is unique. Dubaiites tend to live a lavish life and show a lavish lifestyle at home, so people here spend a lot of money on interior decoration. Some even hire interior designers to do their best work.
Interior designers in Dubai charge more because of their high professional skills. Such a designer must build a large apartment, because the interior design will help reduce costs. In addition, the cost of the interior of the house, such as furniture, displays, and kitchenware, can add up to 10% of the value of the apartment.
Dubai Electricity and Water Authority fees
The dewa fee is what homeowners need to pay to start utilities like water and electricity. This process is mandatory for anyone; Your apartment will only get water or electricity if you pay a dewa fee.
The DEWA fee includes a deposit deducted after the monthly fee is cut; The deposit is USD 200 for apartments and AED 4000 for villas. Typically, the cost of utilities in Dubai averages AED 150 to AED 200. Dubai is a desert, so the water has to go through many processes to transform and purify before it reaches your hands.
ista
ISTA is another utility service unique to the UAE that aims to challenge Dubai's harsh environment. Due to the fewer energy options, it takes a lot of effort and energy to develop the area, renewable energy, and electricity resources in Dubai.
To cope with the scorching heat, Dubai uses artificial rainfall and water jets to keep it cool during peak hours, and since Dubai is a desert, sand is everywhere. Sometimes, sand is the cause of technical failures, requiring crews to clean up large amounts of sand after a sandstorm.
Conclusion
When you buy a property in Dubai, there are a lot of hidden costs. All these expenses are essential for the development and maintenance of the city, making it unique. Without these efforts, you wouldn't see the bright side of Dubai.
However, for the sake of ** charges, some people may fall into the trap of not being able to communicate deeply, which exposes all this. Therefore, it is essential to communicate openly so that everything can be done transparently. That way, you'll know what you're paying for and why.