Buying a property is one of the toughest decisions to make in your life. When you are putting your life savings down, you want to be sure you’ve made the right decision. Given Dubai’s forever expanding real estate supply, many potential home buyers are usually left confused and frustrated. Below are some guidelines to assist you in weighing and narrowing down your options .
1. CHOOSING THE RIGHT DEVELOPER
Looking at the history of deliveries, quality and services of a developer is critical when it comes to selecting their projects. Choose your developer wisely. Things to think about while choosing the developer are:-
A. Government or Private Entity: Governmental entities are usually more reliable than private ones considering that they are well-funded, are large,well-organized entities with experience and have the mandate to support the city’s expansion and economy.
B. Proven track record: Consider the elements in previous projects they have delivered, their quality of building, finishing and resale value of those projects. Are they still in demand given the number of years since they’ve been handed over.
When it comes to choosing a developer, 1+1 doesn’t always equal 2. For instance, while some developers have a sterling reputation for their communities and quality, others offer more spacious units providing a better value for money. Remember, it’s not about who’s better according to the papers, or your husband’s boss, it is about your own preferences and taste. Focus and stick to your objectives.
What kind of a lifestyle do you want to live? What activities do you enjoy as a family?
If you go golfing every weekend, then it might be logical to spend a little bit more to live in a golf course community, where you can benefit being nearby that amenity or most probably enjoy offers and discounts on your hobby. Great choices would be Living Legends, Akoya or Jumeirah Golf Estates.
If you want to ingrain a mantra in your family that values social, economic and environmental sustainability as a lifestyle, then Sustainable City would be the perfect choice.
Consider the property’s age. The older a home is the more maintenance is needed. More maintenance, more headache and expenditure If you’re buying a home whether old or new, be sure to invest in a qualified property inspection service. Do it yourself solutions or having your real estate agent check if the faucets are leaking or if the paint isn't even, can cost you thousands afterwards. Invest in a certified property inspector and save money in the long run.
Al Reem in Arabian Ranches are well priced and have great accessibility to the highway, but considering Mira is a brand new development that currently needs no maintenance and has similar amenities, take into consideration that it might be worth the 10 min extra drive.
Nobody enjoys long commutes or being stuck in traffic for hours. Choose a community that’s convenient for you and your family. Do your homework (or ask your agent to do it for you) and find out:
A. How long would it take to go and come to work?
B. How congested the routes are?
C. Where is your children school? Do the school buses offer routes to your new home?
D. How easy and quick is it to get to the major roads and highways nearby.
5. CURRENT AND FUTURE ACCESS
How many current and future access points are there to this community?
What has the RTA planned for the future? Are there any major highways coming up?
Having an idea of the RTA’s planned road map can give you an idea of the future development of the area and relieve your concerns of traffic congestion.
The most important factor of all! Sticking to your set budget is important, but it is also important to know what added values come with slightly stretching your budget. Work within a range and figure out if that extra 100 thousand dirhams you’ll be paying through mortgage over 20 years is worth it in the long run for a lot of extra benefits.
For instance, a client inquired about a ready two bedroom apartment in JVC within the 1.1-1.2 budget. However, the agent advised him that Al-Andalus, in Jumeirah Golf Estates, was a better choice within the same budget range although it would only be handed over in April 2018. Taking into consideration, the developers reputation, the community, and the quality of finishing the client opted to purchase a garden apartment in Al-Andalus, although it was stretching their budget by about a hundred thousand.
7. HIDDEN FEES
Take into consideration that buying a home involves more than the sale price, so be prepared and plan your budget accordingly.
Typical additional costs include but are not limited to:
4% Dubai Land Department Charges
2% Brokers Fee
Miscellaneous Fees such as Developer NOC, Bank Evaluations and Conveyance fees
Annual Community or Service charges - which vary depending on the community and are usually based either on the built up area of the property or the plot size.
8. THE FUTURE (VALUE OF INVESTMENT IN FUTURE)
When choosing a home, we tend to make an emotional choice rather than a strategic one. Always buy to sell even if you’re not planning to. Consider that extenuating circumstances can happen anytime and minimize your risks.
A. Consider market price
B. Consider market price of neighbouring areas and price/ sf
C. Be wary of paying for upgraded properties that are PRICED higher than the current market price for the community. Sometimes the price difference of the upgrade isn’t worth it. Evaluate how much you’ll be paying if you upgrade it yourself.
9. CHOOSING THE RIGHT AGENT
The previous point brings us to this one. It’s important to choose an agent that listens to your requirements and does their due diligence on the property and community, rather than one who’s in it just to make the sale. That’s why you should always choose a community specialist or an agency that has established itself within the area. The community agent is in it for the long run as they have a reputation to keep amongst their clients in the area. Agents are wary of jeopardizing their careers through bad word of mouth from unsatisfied clients. We all know referrals and repeat business are the best clients. Choosing a one-time agent can be a risk for you. You’ll probably get the wrong or incomplete information. It’s your investment and your life savings, don’t jeopardize it by buying through someone who isn’t well informed about what they’re selling.
Whether a mortgage is available, or if there is an easy payment plan. Some developers offer post-handover payment plans, which suit cash flows and provide much needed relief in today’s economic situation.
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