Buying a property is an important step in life. Even more when it is the first acquisition. You not only spend your lifelong savings but it is also a matter of your security. Therefore, buyers are advised to take their time and be well informed by avoiding certain mistakes. Before you plan to buy a new home, make sure you aren’t very hasty with it. For this reason, we have compiled a list of common home buying mistakes a first-time buyer tends to make.
Common Home Buying Mistakes to Avoid in Dubai
In this guide, we reveal the potential pitfalls and give you tips on how to avoid them.
Not Investigating the Legal Aspects
Proper investigation is mandatory for everyone who wants to buy a villa in Dubai. Several home buyers do not look for information about the property’s location and the seller’s credibility. Thus, due to this, many salespeople take an opportunity to scam on legal documents.
Therefore, to avoid this type of situation, make sure you research the credibility of the company or professional offering the property. Besides, ask the official bodies, such as RERA or Dubai Land Department to check the property’s registration. You can also use the Dubai Rest App to perform real estate trading and transactions.
Not Having a Mortgage Pre-Approval
One of the most crucial steps to buying a house for the first time is getting a mortgage pre-approval in Dubai. Also, investors must understand all the requirements for securing a mortgage in Dubai.
Getting a home loan is quite easy in Dubai. Several banks in Dubai provide home loans considering your monthly income and budget. Your home buying process can be smooth if you get the mortgage pre-approval first and start searching for the property accordingly.
It is a strenuous process and you should take this into account before you even start planning a property purchase. The process begins by having a credit pre-approval then, you can start searching for your dream home. Also, make sure you save enough money for a down payment. Here are some tips that can help you to save money for a down payment in Dubai.
Not Understanding all Loan Clauses
Before you plan to take a bank loan, pay attention to all the details of loan policies along with terms and conditions. Ask yourself how you are going to manage all the loan instalments and afford the stipulated amount. This small research ensures that you know all the terms and, if necessary, consult a specialist.
Not Considering Extra Expenses
Ignoring extra expenses such as the value of a deed, taxes, and house maintenance are some common home buying mistakes that a first-time home buyer should avoid. Also, buying a new home include other additional expense such as:
- Deposits as per agreement of sale between buyer and seller
- Connection fees for electricity and water authorities
- Dubai Land Department fees
- Property registration fees
- Real estate agent fees
- Mortgage registration fees
- Mortgage processing fees
So, do not forget to check all the extra expenses you will have with this step and ensure that your purchase will not become unaffordable for you.
Not Checking the Condition of a Property
First, ask yourself if is this the right house to buy before getting into a serious commitment. Many home buyers make a mistake by not paying all attention to details –from the taps to each corner of the floor.
Potential buyers can also overlook a home that may need some renovation or cosmetic update such as paint. Therefore, it is essential to complete the inspection before you sign a purchase agreement; otherwise, you can run into the risk of a financial drain as you do repairs.
Read more for more tips to invest in the UAE’s real estate market.
FAQs
What to look for when buying a house?
There are several things that you must consider before buying a new home. Some of them include the legality of the property, additional expenses, and pre-approval of the mortgage. Also, check if the property is leasehold or freehold.
What to do when buying a house in Dubai?
First of all, check your bank account and monthly income to apply for a home loan if needed. Secondly, find a RERA registered broker who can guide you in proceeding with the buying process. Lastly, do proper research and decide which location is suitable for your family.
What are the extra expenses that a first time home buyer must consider?
Considering the additional cost is one of the major steps to buying a house for the first time. Many additional expenses can occur such as broker fees, Dubai Land Department fees and property valuation fees etc.
OTHER COMMON FIRST TIME HOME BUYER MISTAKES
Besides, if you are buying a property in Dubai for the first time, you must get everything in writing; instead of believing in verbal promises. For instance, you may buy an apartment on a flexible payment plan; however, after completion, you get to know that you also have to purchase parking space and other things. Therefore, it is best to keep everything written before you make a payment.
Also, plan your purchase carefully so that you will not end up with no savings. Failing to distinguish between freehold and leasehold property in Dubai is another common home buying mistake that one can make while buying a property in Dubai.
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