Whether you intend to build generational wealth or have a retirement investment plan – the lure of first-time home ownership is persuasive. The entire process is exciting but can be challenging for the first-time buyer. After all, there are several steps, and tasks involved – enough to make you conscious at every stage. Though home buying is one of the most expensive decisions yet if you are in Dubai real estate market, you must be sure because it is a great place to be.
With a rapidly growing property market and strong economy, the market entices potential buyers. Moreover, there are plenty of properties for sale in Dubai to choose from. The property buying process can still be daunting, especially if you are not aware of the market. To demystify the process for first-time home buyers in Dubai, here is a rundown of tips that you must consider before buying a property.
Know what you can afford
Before plunging into the market, home buyers in Dubai must know the real cost of the home. Roughly estimated, the house price includes more than the down payment and monthly installments but there are several hidden costs associated with the home buying process such as DLD transfer charges, agency fees, service charges, mortgage approval fees and utility deposits – to name a few.
To understand the entire home buying process in Dubai, you can read our step by step guide to buy a property in Dubai. Before falling prey to an emotional trap, act like a savvy investor and have a clear idea about your budget to buy a home in Dubai. Once you have a profound understanding of your budget, you can avoid the heartache of ditching your dream home that you cannot afford.
Don’t skip pre-approval
Almost every second home for sale in Dubai seems perfect and tempting for first-time home buyers – especially, if you are in rush to buy a property. However, prepare yourself in advance to avoid any disappointment and one such compulsory step is to get a mortgage pre-approval before you start comparing different properties, across the emirate.
- The benefit of mortgage pre-approval is that you will know how much you can afford. It will help you shop around within your budget.
- It makes you sound like a serious buyer with a strong offer. Mostly, sellers want to negotiate with serious property buyers, who can afford their homes. And a mortgage pre-approval letter shows that you have the money needed to purchase a home.
- Another great advantage of a mortgage pre-approval is that you are less likely to experience last minute surprises or delays due to your mortgage lender.
No matter, if you are a first-time home buyer in Dubai but if you are serious, you must request a mortgage pre-approval before you start shopping for homes around.
Don’t do it alone
Dubai real estate is a burgeoning market that has always been attractive to potential buyers. In order to proceed in the best manner, you must work with the best-performing real estate agency in Dubai. However, you must know how to choose a right real estate agency in Dubai because they will work with you to ensure that your best interests are met throughout the home buying procedure.
Remember, you can find every type of property in Dubai, in every budget and at every location. However, being a first-time home buyer in Dubai, all you need is to pick a neighbourhood first, depending upon your budget and personal preferences. After that choose a real estate agency, specialized in the given areas and has a proven track record of previous property transactions there.
Be sure about your needs, non-negotiables and add-ons
It can be difficult to completely ignore your emotions, especially when you are a newbie in the market. Therefore, real estate experts suggest home buyers in Dubai enlist their needs and be able to differentiate them from wants. The list can go on with the must-have things and negotiable features of property. It all starts with the type of property (apartment, duplex, penthouse or villa in Dubai) that you must finalize before starting the search.
After this, you can begin prioritizing the features that you want in your home. For instance, an extra bedroom is your need or a spacious backyard is your choice, a home office is your need or a location near the school is a non-negotiable feature for you. This all can be decided beforehand and will help you later find homes for sale in Dubai more effectively and be less stressed while comparing properties.
Take your time to decide
Never rush! Both estate agents in Dubai and mortgage brokers may pressurize you to quickly put in an offer and complete the transaction without knowing what other lenders might offer or what else you can find in the neighbourhood. Being a first-time home buyer in Dubai, it is perfectly ok to take your time to understand how everything works and when you feel like completely satisfied – make your investment decision only then.
Carefully think things through and evaluate your options. Rather than deciding based on emotions, strive to get market information to make a well-informed investment decision. You must take your time to make this property buying decision – not on emotional instincts but logical grounds.
Pay for a home inspection
You must hire a professional inspector before signing the deal to help unveil any potential problem – so you can make a well-informed investment decision. However, before hiring a home inspector, learn the difference between packages and what is included in the inspection and which inspection you might need.
Make sure the inspection is thoroughly done and try to get it done in front of you, so you can ask the inspector the questions on the spot. However, due to any reason if you cannot be present – ask the inspector to generate a detailed report so you can ask about anything unclear.
The bottom line
Buying a home for the first time necessarily does not need to be overwhelming. Always carefully review your investment decision and maintain your financial health so that the purchase will increase the quality of your life and not decrease it. If you are a first-time home buyer in Dubai, explore your options with the help of the sales team of HFRE. We are always there to help you every step of the way and you can contact us at +971 4876 2473.
