Do you want to get a residence permit by purchasing investment properties in Dubai? If YES, then some tips on buying investment properties in Dubai might be helpful.
Due to the best job opportunities, earning potential, top-notch healthcare facilities, safety, security, and quality of life it provides, Dubai has solidified its place as one of the best cities in the world for expats. Expats desire to buy investment properties in Dubai and stay in the country for an extended period of time for all of these reasons and more.
If you want to carry out the process yourself, we are providing tips on how to proceed. Go on!
Top 9 Tips For Buying Investment Properties In Dubai
Following are some of the best tips you can follow to ensure buying investment properties in Dubai without any hassle. Let’s get to it.
#1. The demographic structure
Dubai is known for a variety of nationalities living peacefully together. As one of the world’s leading business hubs, the emirate is attracting professional executives as well as a growing number of independent entrepreneurs to relocate their businesses or residence to Dubai or purchasing investment properties in Dubai.
Furthermore, many international companies are opening huge manufacturing facilities and regional headquarters to serve and cover the whole world through Dubai’s strategic location. With a total population of 3.137 million (October 2018), almost 85% are expatriates living in Dubai.
#2. Be aware of the location
Of course, like anywhere else in the world, this applies to Dubai. Price and location also go hand in hand. Think about what is the most important factor for you when buying investment properties in Dubai. Sure, price is one criterion, but location is always more important because location will often dictate everything else in the search.
If the property is in an enjoyable area, your property will be more in demand and you can ask for a higher resale price later. The same property in a less attractive area won’t have nearly the same appeal and won’t generate nearly as much rental demand.
You’ll have to pay a little more when you buy investment properties in Dubai, but buying from a better place means you’ll score a lot more profitable and safe options.
In Dubai, real estate on the sea and on the golf course is the most popular and thus always and quickly finds a tenant and a buyer.
#3. Clearly state what you want
Be sure why you want to buy the best investment properties in Dubai. Is it intended as a holiday property, as an investment or do you want to move to Dubai entirely? A properly set goal is already halfway achieved. Each goal has to be approached differently and places different demands on the property. However, there is an option for every desire in Dubai. Thus your goal of owning a property in Dubai will be fulfilled.
#4. Find out a lot about the developer
It is very important to note the following: If you are interested in a new building under construction, make extensive inquiries about the developer in advance. Inquire about previous projects and compare the quality, construction time, and whether promises have been kept. Also compare projects from other developers in your preferred area.
#5. Decide on the right consultant
The right advisor will make your life and the buying process much easier. Find a consultant with a reputation and proven and extensive knowledge. The right consultant will work out a strategy with you and create an individual concept that fully meets your requirements and wishes.
Understanding the client is vital to develop their real estate portfolio. The agent is a trusted advisor who represents their clients’ interests and ensures they find and get the right product for their needs.
They will only show you properties that meet your individual requirements. In addition, they will also make suggestions without forcing you into anything. A reputable consultant is also welcomed by property developers and owners. Therefore, they can ensure that the process usually runs smoothly and ensure that everyone involved has a positive experience. The right advisor should also give you all the important details without you having to ask, so that you can make an all-round safe purchase decision.
#6. Know about taxes and fees
When purchasing investment properties in Dubai, there are a number of costs to take into account. This includes developer fees, broker fees, and the cost of determining your mortgage rate. It is important to estimate these costs in advance. A normal amount, as a general rule, is to increase the purchasing price by 5%. Avoid getting caught.
#7. Never purchase today and sell tomorrow
Buying an asset is a medium-term investment, especially if you’re doing it to obtain a residency visa. You acquire expenses including a broker’s commission and a government fee for registration of property rights. The payment of these expenses will take some time.
A house is also typically not a highly liquid investment and is highly unlikely to sell quickly for a fair price. Meanwhile, if you have chosen to buy investment properties in Dubai, it is a secure investment that will yield a consistent return.
#8. Check the property’s liability
Make sure you will receive a bond that is free from commitments or debts when purchasing investment properties in Dubai to obtain the resident visa. A NOC (No Objection Certificate) from the developer’s office must be obtained by the seller. The property will typically undergo a number of inspections by the developer to make sure there are no liabilities. After that, the developer will issue the NOC indicating that the property is prepared for transfer to the Dubai Land Department.
#9. Carefully read and comprehend the contract
A Memorandum of Understanding (MoU) or a Purchase and Sale Agreement (SPA) between the buyer and seller are examples of legal documents that are typically included with purchases of investment properties in Dubai. In addition to outlining all terms and conditions, these agreements also specify the buyer’s and seller’s roles in completing the property transfer from seller to buyer.
Never sign a contract before you understand all of the terms and conditions and that you agree to your obligations as a buyer in the agreement. Closing a contract on a house in Dubai is undoubtedly one of the most significant investments you will make, even without the assurance of permanent residency.
Lot of people would like to have the opportunity to add an asset of this calibre to their portfolio. However, think about the aforementioned advice before engaging in such business, and engage with reliable individuals.
So, you are now aware of the rules of buying investment properties in Dubai. What are you waiting for? Define your budget and start planning.