Buying a house is one of the biggest decisions in everyone’s life, especially when you are investing your life’s savings into it. Therefore, you have to be very careful. A little mistake in your buying process can be costly. Therefore, you need to know every little detail to make sure everything goes smoothly.
In this article, we compiled a list of mistakes you need to avoid when it comes to buying a house in Dubai.
Failed to do accurate research
In most cases, home buyers only search real estate listings on real estate websites, find one they like, and buy it, without any knowledge of the local market conditions, the neighbors, the environment of the house, the neighborhood, and the history of the house. It may sound like it’s not a big deal, but knowing all the essential information will assist you in finding the right house. Whether you want to invest or not, adequate research will let you know the actual worth of the house you are buying and how much yield you can get in the future.
If you don’t know where to start your research, using a real estate website is a good choice. However, don’t limit your research only on the listings. Many real estate websites provide average prices of a house in Dubai, an overview of the area, as well as the cost of living and the lifestyle factor of the area. The website allows you to know the number of properties in the area and if the prices are falling or rising. They even have a loan calculator to help you out. Also, they have an advice feature where you can ask your questions. However, it is advisable that you still do more research by yourself, to make sure you don’t miss anything.
We understand how exciting buying a house in Dubai is, and sometimes you just want it to happen as fast as possible. But rushing it is a big mistake. You are going to live in that house for several years, so there is no point in rushing! Instead of buying the first house you like, make sure you take a look at other houses too. It is very easy to miss out on other houses that may be more ideal and suitable for you.
Just because a house is pretty, doesn’t mean it is suitable for you. Not only you have to ensure the house fits your tastes and needs, but also the hidden costs involved. Remember your budget, then consider the cost of living as well as the service and maintenance charges in the area. Many people tend to forget about this ‘hidden’ cost and buy a house based only on the price tag. No one wants to end up with a house that is a bad fit for them, so make sure you take your time and visit as many houses as you can. Keep a list, write down what you like and dislike from each house, and take the time to revisit the houses to have a clear picture.
Can’t distinguish freehold and leasehold
There are two types of homeownership in Dubai: freehold and leasehold. Understanding the difference between the two is very important before you buy a property to call home. Freehold property is the preferred type of ownership. Freehold properties are only available in designated areas, such as Palm Jumeirah, Dubai Marina, and Al Barsha. Freehold properties allow you to own a building and land permanently. You can also transfer it through generations. However, you can only buy freehold properties from government-approved real estate developers or agents.
A leasehold means you lease a building from an owner to use the building for a limited number of years. In Dubai, the maximum years you can lease a house is 99 years. After that period, you lose the lease and the control is transferred to the property owner. With leasehold ownership, you only have the rights to the unit, not the land it was built on.
Picking the wrong location
Many neighborhoods in Dubai are equipped with all the necessary amenities that you may need. You can find numerous affordable areas that may suit your budget. To choose the best property for you and your family, try to find a house that is within close proximity to your workplace, health care facilities, and good schools.
Skipping home inspection
Inspecting a house sounds very troublesome, so hire a professional home inspector to check faulty fixtures, electricity, plumbing, leaky roofs, and weak walls. Skipping home inspections can cause frustration and financial loss. Even when your dream home needs a little work and you still want to buy it, at least you can plan your budget accordingly.