Buying a first home in the UAE is a dream come true for many. Purchasing a real estate unit is not difficult, but it includes different aspects that need to be catered to. When you are buying a home for the first time, multiple questions arise, like where can I buy property as an expat or what is the down payment for purchasing a property? That said, here we have answered all the questions that might trouble first-time buyers.
Let’s take a look at the most common first-time home buyer FAQs and answers to them.
Frequently Asked Questions About First-Time Home Buyers
First-time home buyers can get attracted by the benefits of buying a property in Dubai and other Emirates. However, to avail of these benefits adequately, one should be aware of all the processes and legal aspects of buying a property unit for the first time.
Here are all the answers to the FAQs by first-time home buyers.
What Is the Process of Buying Property in the UAE?
The process of buying a property in the UAE is relatively easy compared to other countries.
- Find an ideal property within the Emirate
- Place an offer to the owner and sign the Memorandum of Understanding (MoU)
- After paying the deposit, conduct the due diligence
- Transfer the property ownership to your name and get a new title deed.
How Can I Find Property in the UAE?
Real estate agents can assist you in finding a property in the UAE. Other than that, online portals like dubizzle can help you with the process. You can choose from a number of properties for sale in the UAE that are listed on dubizzle by trusted users.
Is It Necessary To Hire a Real Estate Agent for Buying Property in the UAE?
It is not obligatory to hire a real estate agent, but it is beneficial for first-time home buyers. Real estate agents not only assist in finding an ideal property unit but also cater to all the legalities on your behalf. Alongside this, there are multiple other benefits of hiring a real estate agent in the UAE that you can leverage.
Which Area Is Best To Buy Property in the UAE?
UAE has state-of-the-art infrastructure and every community is equipped with all the basic life amenities. Therefore, create a list of your priorities and rank the areas accordingly. For instance: if your office is located in Business Bay, you can opt for residential complexes like Executive Towers, Bayz by Danube and Al Habtoor City. Similarly, if you do not have a car, choose a property near the metro or bus station.
Which Type of Property in the UAE Is Best for Me?
There are different types of properties in the UAE, from apartments to villas and penthouses to townhouses. Living in an apartment is considered more budget-friendly, as the maintenance cost is lower and residents can also avail of the community facilities. On the contrary, the overall cost of buying and maintaining a villa is much higher than an apartment.
For more pros and cons, read our blog on living in an apartment Vs a villa.
Why Is NOC and Why It is Important when Buying Property?
A No Objection Certificate (NOC) is issued by the developer indicating that all the payments and due charges of the current owner are cleared. For NOC, simply ask your developer to provide a NOC, submit the certificate to the concerned government department and get it approved. As a buyer, it can be used as proof that all the remaining dues are paid by the previous owner.
How To Draft a Budget To Purchase a Home for the First Time in the UAE?
Drafting a proper budget is one of the most significant steps for first-time home buyers. First, calculate your monthly earnings and subtract monthly expenses from it. The remaining amount is your monthly savings. Now, add this amount to other assets or finances. The total amount after the addition is your budget to purchase a property.
Remember that you should have some money saved to pay for the downpayment and other hidden fees for buying property in Dubai and other Emirates. In case of lower savings, the off-plan property can be an ideal option.
Should I Buy the Home in Cash or on a Mortgage?
Buying a home on cash offers greater investment return and a stronger position to bargain the overall property price. However, buyers must have cash in hand when opting for this option.
Contrary to that, a mortgage provides more financial flexibility and ease of payment but comes with an additional interest rate. Here are all the pros and cons of buying property on cash Vs mortgage.
How To Apply for a Mortgage As a First-Time Home Buyer?
Following are the steps involved in applying for a mortgage in the UAE. However, before you opt for the mortgage, remember that applicants must have a minimum monthly salary of AED 15,000 to apply for the mortgage.
- Find a financial institute to get a mortgage, and check the interest rate and other benefits offered with the loan.
- Banks and financial institutes offer different types of mortgages. Select the one that suits your requirement.
- Apply along with all the required documents and acquire the pre-approval letter. The pre-approval letter is an official document that elaborates that you are eligible for the mortgage.
- According to the amount of mortgage, find an ideal home for yourself. Remember that, if you are an expat you can buy property in any freehold areas of Dubai and other Emirates. However, Emiratis and GCC nationals can purchase property anywhere in the Emirates.
- The overall process can take anywhere between 2 weeks to months. Therefore, it is suggested to apply for the mortgage in advance.
Besides, if you are a UAE national, avail of the finance for first-time Emirati home buyers provided by the government.
What Is Credit Score and How To Check It
A credit score is a numeric used to rate the creditworthiness of an individual. Banks and financial institutes consider credit scores before lending a mortgage. To check your credit score, you can visit the AECB official website or mobile app (Android | iOS).
Is Off-Plan Property Cheaper Than Ready-To-Move-In?
Yes, the off-plan properties are generally more affordable than ready-to-move-in properties. This is because the property is sold on Blueprint and developers offer early bird discounts to incentivise buyers.
What Is the Process of Buying an Off-Plan Property in the UAE?
The steps to purchase an off-plan property in the UAE are mentioned below.
- Find an ideal off-plan project.
- Visit the project and negotiate on the overall price and select an ideal off-plan payment plan.
- Sign the Sales and Purchase Agreement (SPA) and pay the initial deposit.
- Register SPA with the concerned department to make it legal.
- Pay the monthly instalments, till the project is handed over.
For more information, here is the complete guide to buying off-plan properties in the Emirates.
These were all the first-time home buyers’ FAQs that you must be aware of before purchasing a property in the UAE. The world-class infrastructure and no property taxes make the UAE real estate market an ideal place to invest. If you are also interested in availing of these features, browse through these apartments and villas for sale in the UAE and find an ideal property for investment.
Besides, you can also read our blog on first-time home-buying checklists to avoid any hassle.
Stay tuned to dubizzle’s property blog to know who qualifies as a first-time home buyer.
