Planning to Buy a Villa in Dubai? Here are 5 Important Factors to Consider

Dubai, one of the world’s largest real estate markets, excels in meeting buyers’ needs compared to other global markets by offering enormous advantages, exceptional value, and a variety of incredible amenities. There is a wide range of housing options. However, villa communities are the best choice because they provide privacy, comfort, and preference. 

Several options will meet your needs and budget if you are looking for villas for sale in Dubai. Before you make one of your biggest financial and emotional commitments, here are 5 crucial factors to consider to get your adventure started to ensure the procedure is as enjoyable and easy as possible.

What to Consider

1. Residence

How long have you lived in Dubai, and how long do you intend to stay there? Knowing the answers to these questions is crucial to calculating your prospective investment return. 

2. Affordability

Your housing costs shouldn't be more than 30% of your monthly income, according to a global standard that helps define affordability. Budgeting for upfront costs, which amount to about 7-8% of the purchase price, is also quite important. Owners are also responsible for ongoing maintenance costs and annual service fees.

The fees for buying a home are as follows: 

• Fees charged by DLD, Dubai Land Department, of the purchase price is 4% with an administrative fee of DH 580. 

• Registration Fee for real estate worth less than DH 500,000 is DH 2,000, and for real estate worth more than DH 500,00 is DH 4,000 + a 5% tax for both. 

• The real estate agent's commission on the buying price is 2% + 5% tax. 

• The fee for arranging a bank mortgage from the loan is 1% + 5% tax. 

• The DLD will charge 0.25% of the loan taken + DH 290 for mortgage registration fees.

• Property valuation cost: DH 2,500-3,500 + 5% tax.

Costs associated with upkeep: 

According to the RERA Service Charge and Maintenance Index, you must pay the Dubai Land Department annual upkeep fees for your property. This index changes depending on the neighborhood and establishes a specific fee per square foot. Direct access to the most recent fees is available on the DLD website.

3.  Savings

Your down payment is one of the most crucial aspects to consider when purchasing a home. According to UAE Central Bank regulations, foreigners must put down a minimum of 25% of the purchase price for homes under AED 5 million, compared to 20% for locals. 

Your savings must contribute to the down payment rather than a personal loan from a nearby bank. However, take a personal loan to pay up-front transaction costs, agent fees, and bank fees.

4. Visa for​​ Residence 

If you meet specific requirements, you may qualify for a resident visa through house ownership for properties valued at more than AED 1 million. Two types of visas are available: a 2-year residency or a 6-month multiple-entry visa. Additionally, property owners may sponsor visas for members of their immediate families. 

You may be eligible for a 5-year residency visa if you own properties worth more than AED 5 million that are free of debt and that you keep for three years, a subject once more to specific eligibility requirements.

5. Check Developer Credentials

Keep tabs on the after-sale upkeep history. A real estate developer will take care of the client's demands and guarantee that the best selection is made for the client. Make some inquiries and seek out recommendations for committed developers working on top-notch projects. 

Other factors to think about

Location: Consider your way of living. Is the property close to childcare centers or schools? How long does it typically take you to go from home to work or your kids' school? Is access to public transportation simple? Are dining establishments, coffee shops, tourist attractions, or places to go out at night essential to you?

Size: Considering the size of your family, is the property adequate for your needs? Do you have any immediate intentions to grow your family? Do you want to provide your kids access to a big backyard?

Layout: Since not all square footage is equal, it's critical to carefully evaluate floor designs and layouts. Do you desire an open-concept home? Do you prefer larger bedrooms or more roomy living spaces? 

Market Conditions: Take into account the most recent market developments in your chosen area. Is now a good time to buy? What are the current rental yields?

Quality: Verify the construction and property quality and check if any renovations are needed. A trustworthy real estate developer produces high-quality buildings. 

Hopefully, this article has helped you understand the factors to consider before you buy a villa in Dubai. These factors will help you make an informed decision that gets you the villa of your dreams without breaking the bank.

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