For many, buying their first house in the UAE is a dream come true. Purchasing a real estate property is not difficult, but there are some factors to consider. When getting a home for the first time, many issues emerge, such as where can an expat buy property or what is the down payment for purchasing a property. However, we have addressed all of the issues that first-time buyers may have.
Let’s look at the most frequent first-time home buyer FAQs and their solutions.
FREQUENTLY ASKED QUESTIONS ABOUT FIRST-TIME HOME BUYERS
The advantages of buying homes in Dubai and other Emirates could attract first-time home buyers. To fully take advantage of these benefits, however, one must be knowledgeable of all the processes and legal issues of buying a property unit for the first time.
Here are all of the answers to the frequently asked questions by first-time home buyers.
WHAT IS THE PROCESS OF BUYING PROPERTY IN THE UNITED ARAB EMIRATES?
Compared to other countries, the process of buying a home in the UAE is quite simple.
- Find the best home in the Emirate.
- Make an offer on the property and sign the Memorandum of Understanding (MoU).
- Conduct the due diligence once you have paid the deposit.
- Transfer ownership of the property to your name and obtain a new title deed.
WHERE CAN I FIND PROPERTY IN THE UAE?
Real estate agents can help you find property in the UAE. Aside from that, internet portals might assist you with the procedure. You may select from a variety of homes for sale in the UAE that have been placed on PropertySearchUAE by reputable users.
IS A REAL ESTATE AGENT REQUIRED WHEN BUYING PROPERTY IN THE UAE?
Hiring a real estate agent is not required, but it is useful for first-time home buyers. Real estate brokers not only help you select the perfect property unit, but they also handle all of the formalities on your side. Aside from this, there are several additional benefits to hiring a real estate agent in the UAE.
WHICH AREA OF THE UAE IS BEST FOR PROPERTY BUYING?
The UAE offers cutting-edge infrastructure, and every town is outfitted with all of life’s necessities. As a result, make a list of your priorities and rank them accordingly. For example, if your workplace is in Business Bay, you may choose among residential complexes such as Executive Towers, Bayz by Danube, and Al Habtoor City. Similarly, if you do not have a car, look for a home near a metro or bus stop.
WHICH PROPERTY TYPE IN THE UAE IS BEST FOR ME?
The UAE has a wide range of property kinds, from apartments to villas, penthouses to townhouses. Apartment living is regarded more cost-effective since maintenance costs are lower and residents may use common facilities. On the contrary, the entire cost of buying and maintaining a villa is significantly more than that of an apartment.
WHAT IS A NOC AND WHY IS IT IMPORTANT WHEN BUYING A HOME?
The developer issues a No Objection Certificate (NOC) showing that all current owner payments and outstanding charges have been cleared. Simply get a NOC from your developer, submit the certificate to the relevant government authority, and have it authorized. As a buyer, you can use it as confirmation that the former owner paid all outstanding debts.
HOW DO I CREATE A BUDGET TO PURCHASE A HOME FOR THE FIRST TIME IN THE UAE?
One of the most important tasks for first-time home buyers is creating a realistic budget. First, compute your monthly profits and remove your monthly costs. The remainder is your monthly savings. Add this sum to your other assets or finances. The entire sum after the increase is your budget for buying a home.
Remember to save money for the downpayment and other hidden costs of buying a property in Dubai or other Emirates. Off-plan property might be a good alternative if you want to save money.
SHOULD I BUY THE HOME IN CASH OR ON MORTGAGE?
Buying a home with cash provides a higher investment return and a stronger bargaining position on the entire property price. Buyers must, however, have cash on hand if they choose this option.
In contrast, a mortgage gives greater financial flexibility and simplicity of payment, but at a higher interest rate.
HOW CAN A FIRST-TIME HOME BUYER APPLY FOR A MORTGAGE?
The stages for applying for a mortgage in the UAE are as follows. However, before you apply for the mortgage, keep in mind that applicants must have a minimum monthly salary of AED 15,000 to be eligible.
- Choose a financial institution to obtain a mortgage, and compare the interest rate and other loan benefits.
- Different forms of mortgages are available from banks and financial institutions. Choose the one that best meets your needs.
- Apply with all essential papers and receive a pre-approval letter. The pre-approval letter is an official document that confirms your mortgage eligibility.
- Find an appropriate property for yourself based on the amount of your mortgage. Remember that as an expat, you can buy property in any freehold area in Dubai or the other Emirates. Emiratis and GCC nationalities, on the other hand, can buy property anywhere in the UAE.
- The total procedure might take anything from two weeks to several months. As a result, it is advised to apply for a mortgage in advance.
Furthermore, if you are a UAE native, you may take advantage of the government’s financing for first-time Emirati house buyers.
WHAT IS A CREDIT SCORE AND HOW DO YOU GET ONE?
A credit score is a number that is used to assess an individual’s creditworthiness. Before providing a mortgage, banks and financial institutions look at credit ratings. To check your credit score, go to the AECB’s official website or download the mobile app (Android | iOS).
IS OFF-PLAN PROPERTY LESS EXPENSIVE THAN READY-TO-MOVE-IN?
Yes, off-plan properties are often less expensive than ready-to-move-in residences. This is due to the fact that the property is offered on Blueprint, and developers provide early bird discounts to entice buyers.
WHAT IS THE PROCESS OF BUYING AN OFF-PLAN PROPERTY IN THE UAE LIKE?
The following are the stages to buying an off-plan home in the UAE.
- Find a suitable off-plan project.
- Visit the project, negotiate the whole price, and choose the best off-plan payment plan.
- Sign the Sales and Purchase Agreement (SPA) and make the first payment.
- To make SPA legal, register it with the appropriate department.
- Pay the monthly installments until the project is completed.
These are all the frequently asked questions for first-time home buyers that you should be aware of before acquiring a property in the UAE. The UAE real estate market is a great destination to invest due to its world-class infrastructure and lack of property taxes. If you want to take advantage of these benefits, go through these apartments and villas for sale in the UAE to locate a perfect investment property.
