Expats Guide: Do's and Don'ts as a foreign investor in Dubai
The city of dreams has never failed to captivate people. Dubai is the land that welcomes all nationalities who choose to make it their home.
12:10 02 July 2020
Tall state-of-the-art skyscrapers, sprawling malls, while restaurants offer almost any cuisine, so you won't miss your native food. Besides, it's the luxury and peaceful lifestyle that draws you to this enthralling land of opportunities. Also, the conducive buyers market and great offers in Dubai makes it a fantastic investment for local and foreign investors. You will easily find some incredible properties to buy in Dubai and fall in love with its captivating charm and beauty.
However, before you buy property in Dubai, know the do's and don't as an expat investor and get the best of the property market in Dubai:
Know your purpose well
Firstly, it's essential to be clear about your reason for buying a property in Dubai. Is it a pure investment? Or are you an end-user? Further, if you plan to live in the property, then you could consider the location and size of the home to shortlist. These aspects can help you decide on the location of the property quickly. In case you are planning on a commercial tower, then read -up information on rental and sale properties to understand the ROI on commercial properties and shortlist those areas that suit your budget.
Research is important
Research, research and research. Nothing can beat a well-planned decision. The investment can be your deal-breaker when the property for sale in Dubai is in the best location. If it's a commercial property, then you may want to look into its ROI. That's the rental value of the property or space before you finalise the house.
On the other hand, if you're planning a residential property, then it's great if your future home is located amidst local amenities and schools. How relaxed can your lifestyle be if you live near the Carrefour, Spinneys or a sprawling mall and there's a local school with excellent ratings? That way, you have the option of enjoying a relaxed routine while you can expect a higher rental return and value appreciation for residential property in a central location.
Don't say yes to the first property you see
Come what may, Dubai is a place of fantastic luxury properties. You will be amazed at the exquisite selection of villas or apartments that come up for sale in Dubai for foreign investors. However, it's always good to browse an extensive collection of properties for sale before you fall in love with your dream home. Dubai is the hub for high-end luxury homes, and it's most likely you will love almost every house you see! So hang on there, weigh your options in terms of budget, location, amenities and design before you put your downpayment.
Hire the right agents
When it comes to properties, you will need the right property people to help you through the process. Their local knowledge and expertise can be your best bet in finding the perfect property. Moreover, who can give you trusted advice about the documentation required, property value appreciation, ROI potential and property registration cost better than the local real estate agents?
Paperwork is vital
While your agent is trusted and experienced, you need to get hands-on with the MOU (Memorandum of Understanding), ensuring it represents your conditions and terms the right way. Whether you are planning on taking out a mortgage or you may be a cash buyer, it's essential to read through the initial sale agreement and add your valid points.
Know about mortgages
Perhaps, you're eligible for a mortgage loan in Dubai. The banking sector in Dubai has generous offers for expat borrowers. The interest rates are alluring, and there are many banks in Dubai which provide you with excellent mortgage deals. Plus, you have the variant of regular mortgage and Islamic finance options. Do understand the offers before you choose to finance.
Keep yourself well prepared for the add-on costs in a property purchase. For instance, there's the land registration to consider, agent's fee, the transfer fee and the mortgage fee that you will have to factor in your cost. Further, there's an expense of moving into your new home and the initial cost of setting -up your utility services. So it's always best to calculate all these costs while you plan your property investment in Dubai.