The real estate market in Dubai is one of the most varied in the world. Buyers frequently rely on two possibilities when looking for appropriate residences or high-ROI-yielding properties: professional real estate companies or property owners/developers. If you wish to buy a home in Dubai directly from the owner, our evaluation of the benefits and disadvantages might help you make a choice.
THE BENEFITS OF BUYING A PROPERTY FROM THE OWNER IN DUBAI
Buying a property directly from the owner in Dubai offers advantages and disadvantages. Those who acquire real estate directly from developers or private sellers rather than via real estate agents must examine a number of criteria. Let’s start with the benefits.
SAVING MONEY
Savings are a compelling argument for many individuals to buy a house directly from the owner in Dubai. Note that using a broker or real estate agency to discover the perfect home raises the cost of buying a house in Dubai.
Let’s attempt to put the numbers in context here. If you purchase property directly from an owner or developer, you must pay DLD fees of 4% of the property value.
The total charges will include the amount for issuing the Title Deed as well as a DLD admin fee. Mortgage Registration costs of 0.25% of the entire amount of the mortgage and an extra admin charge apply to people who finance their properties with a mortgage.
If you use a real estate agent or broker to discover a suitable house, the same procedure will cost you more money. Brokers may impose a 2% agency fee in addition to the prices listed above.
Some agencies additionally impose a 5% VAT surcharge on the fee, which might raise the price. While these fees are negotiable, any additional expenditures may not be suitable for people searching for low-cost investments in the city.
THERE IS NO MIDDLEMAN.
Buying property in Dubai directly from the owner may appeal to people who want a more hands-on approach to property ownership. By removing a broker or agency from the purchase process, the middleman is removed. Breaking down the boundaries between the seller and yourself may help you discover a suitable home faster. Many developers in Dubai, for example (Emaar Properties, DAMAC Properties, and others), allow buyers to book their chosen residences online.
THE DISADVANTAGES OF BUYING A PROPERTY DIRECTLY FROM THE OWNER IN DUBAI
Let us now look at the potential drawbacks of buying a home in Dubai straight from the owner.
WEAK KNOWLEDGE OF THE PROPERTY
To buy a home, you must be confident in evaluating a home with the same thoroughness as a seasoned real estate professional. If this is the case, buying Dubai homes directly from the owner may be the best alternative for you.
But, if you are unfamiliar with the complexities of property acquisition, a real estate agent’s skills and understanding might be beneficial. Also, they will be able to assure a smooth property viewing experience, which is an advantage not to be overlooked.
LACK OF EXPERIENCE
Unless you and the landlord are both licensed real estate brokers, you will most certainly lack expertise negotiating the complexities of property transactions. For example, the contract and associated documentation may be more involved than expected. This might cause a considerable lag in the process while you and the existing homeowner strive to sail smoothly. These concerns can be exacerbated when acquiring a property from an individual seller rather than a developer.
NEGOTIATIONS MAY BE DIFFICULT.
Negotiation is an art, especially when it comes to something as crucial as a property deal. Emotional attachment, for example, can play a huge influence and typically prevent sellers from accepting your offer. In such instances, it may be wise to hire a real estate agent to find you an adequately priced property. Real estate agents with experience are skilled negotiators. They’ll generally make sure you obtain the greatest price possible depending on the aspects that influence a property’s worth.
WHERE CAN YOU BUY DIRECTLY FROM THE OWNER IN DUBAI?
Property may be purchased directly from developers or individual sellers in numerous regions of Dubai. Prominent areas include Al Qusais, Jumeirah Village Triangle (JVT), and Al Nahda, to name a few.
In addition to the locations indicated above, buyers and investors can look into reputable developers such as Emaar, Dubai Properties, Nakheel, Meraas, and Azizi Developments for ‘direct to own’ homes in the city.
WHICH AREA OF DUBAI IS THE BEST TO LIVE IN?
Dubai Marina is frequently ranked as the finest place to live in Dubai. Our guide will show you where to rent or purchase apartments in this self-contained area.
WHERE CAN I FIND CHEAP APARTMENTS IN DUBAI?
International City, Dubai South, Dubai Production City, Al Warsan, and Liwan are popular districts in Dubai to rent cheap apartments.
I WOULD WANT TO BUY A PROPERTY IN DUBAI. SHOULD I THINK ABOUT CASH OR A MORTGAGE?
When determining whether to buy property in Dubai with a mortgage or cash, there are several aspects to consider. Mortgages, for example, are too costly. They are, nevertheless, more adaptable and simpler to control. This article will assist you in weighing all of the advantages and disadvantages of purchasing a house in Dubai with cash versus a mortgage.
That’s all there is to it! The benefits and drawbacks of buying a house straight from the owner in Dubai. It is worth mentioning that Dubai’s thriving real estate market welcomes international investment. Non-resident investors who satisfy the qualifying conditions can buy property in Dubai.
Read More: How to Sell a Dubai Property From Overseas
