Things To Know Before Buying A House In The Uae

 UAE has an inspiring culture and history; it has significantly advanced in terms of economic equivalents, infrastructural capabilities and above all, has been able to extract the right advantage from rising expat population. According to recently released figures, there are around 8.4 Million expats living in UAE at present. Quality of life, standardized culture, tax-free income, and savings have been the primary reasons for driving this trend of immigration, especially observed from Asian countries like Bangladesh, India, Pakistan, and Sri-Lanka.
 Booming Startup community, soaring real estate industry and flourishing tourism are three decisive factors that are at present helping Dubai earn all the accolades it deserves. Speaking about the real estate trends in Dubai, the rental market has indeed enlarged due to consistent expat movement, but has also, on the other hand, created a dent in the tax-free savings of nearly all residents. This has led to a shift in real estate industry as many expats now prefer to buy a property in Dubai, so as they can have a permanent residency, easy mortgage covered by an ongoing rental wave, and be able to draw benefits from Dubai expat friendly policies. If the thought of buying a property in Dubai is scrolling through your mind, then here a few things to remember before finalizing your purchase deal.
 Know the fees involved
 Dubai real estate landscape falls under Dubai Land Department or DLD (most common property destination for expats). In case a third party real estate agent is involved, then upon finalization of deal nearly 2% property amount goes to them. Please note that is an ethical commission asked by the agents, but if for reasons you wish to skip the middle party, then you can find and shortlist your property on Bayut, which is the most trusted and popular real estate portal, followed in UAE. Apart from the agent fees, another Dh250 is required to be transacted as a part of the title deed insurance fees.
 
 In order to complete the registration, you are required to pay Dh4,000 as a registration fee, which is in the case the overall property cost is Dh500,000. In case the property value is less than Dh500,000, then a fee of Dh4,000 will be transacted. Please note that this is all done after the whole money is transferred to the seller.
 
 More, if you have taken a property on mortgage from Bayut or any other outside agencies, then the registration fee is calculated at the rate of 0.25% of the whole amount loan amount as approved by the bank. 
 
 Bank Fees: Almost all banks in the UAE follows 25% down payment rule for expats. Please note that this is the minimum amount to be paid as down payment, so it advised raising the rest of the amount beforehand from the bank. The best way to know the buying value of your interest property is by evaluating the pricing through Bayut or getting in touch with a real estate agent. There are many agents who also offer financial planning alongside showcasing the most eligible properties.
 The regulation of buying a life insurance
 In UAE, it is a common practice followed by nearly every bank, that the owner of the new property who they agree on financing, should have solid life insurance to back his/her loan candidature. The insurance is a way of securing full loan payment even after the unfortunate demise of the owner. However, it should be noted that it is not mandatory to buy the insurance policy of the same bank, from where you have a financing agreement. You can compare the best insurance policies offered by several banks in the UAE and then make an informed and unbiased decision. The insurance amount is calculated on the basis of the present/past medical history of the owner.
 Documentation required to be submitted to the sellers by expats:
 Passport Copies
 Residential Proof
 Address Proof
 Evidence of regular income/Salary certificates (letter provided by the employer)
 Bank account statements of usually three to four months
 Memorandum of Understanding
 Copy of Emirates ID
 Copy of current credit card payments
 All/Other supporting costs involved in buying property in Dubai:
 Deposits Cost as per the Sale Agreement established between Buyer & Seller
 Electricity and Water connection fees
 Transfer fees–Land Department
 Agent Commission
 Mortgage application charge
 Community service charges
 Miscellaneous admin fees that are to be submitted to the Land Department
 Other Miscellaneous things to consider before buying the property in Dubai:
 Make sure you connect with a RERA-registered broker only.
 For securing the property, you are required to submit at least 10% of the whole property amount.
 The title deed is provided by the seller along with the Memorandum of Understanding.
 Upon final approval on the property, the seller provides with a No-objection certificate or NOC to the buyer. Usually, this is done at the end of full payment.
 The agent involved in between usually takes 2% commission from both the buyer and the seller.
 Final Words: Buying a property in UAE can become an ardent process, but once done the ecstasy of having a property in the most trending real-estate market, is worth congratulations. You can always cover the mortgage payments through rentals which is the easiest ways of fulfilling the loan payments. Shortlist the property, derive a plan and then seek approvals.