Steps to Invest in Dubai Real Estate
It is important for you to know the procedures you need to undertake in order to make the right investment in Dubai real estate. Here’s a detailed guide on how to navigate the process:
1. Research the Market
To help you get started it is advised that you should take sometime and read through the following before you invest in real estate.
2. Determine Your Budget
Set a visible budget for your investment. There are other expenses for example registration costs, broker fees, monthly upkeep fees and even possible repair expenses. This way, you will not spend more than you anticipated and the search for the property will be much easier with a defined budget.
3. Choose the Right Property
It is therefore important to consider the different types of properties and select the one that will in some way meet your investment needs. Select among the two categories of properties and these are the residential properties and the commercial properties. For residential properties, consider the location, type of a property and whether it is an apartment, villa or a townhouse and amenities. For commercial real estates, the possibility of business expansion and income through rental should be assessed.
4. Engage a Real Estate Agent
Investors can make the process easier by hiring a good real estate agent. Agents are conversant with the market, they can help in coming up with the best prices. Ensure that the agent is registered with the Real Estate Regulatory Agency (RERA) of Dubai.
5. Visit and Inspect Properties
After making your list of possible properties, arrange to go and view the property physically. Make a point of making sure that the property, environment and facilities are well maintained. This step is important so that you will get what you want or need for your investment property.
6. Make an Offer
You can now put your offer in for a property that interests you. Your real estate agent can help you in the price and other conditions of the selling process. It is recommended that you always get into writing agreements to avoid all forms of misunderstandings in future.
7. Hire a Legal Advisor
It is advisable however, to seek the services of a legal professional in order to get the legal aspects of the process correct. The advisor will read the sales agreement and make sure that the property is legal, and does not have any encumbrances or legal problems.
8. Obtain Financing
If you require a loan you should go to a bank or a credit institution for a mortgage. We advise you to meet all the conditions and provide all necessary documents including the proof of income and credibility. Learn about the different kinds of mortgage so you can determine which has the best interest rate and what specifics are tied to the said rate.
9. Sign the Sales Agreement
When the buyer makes an offer and gets financing for it, it is followed by signing of the Memorandum of Understanding between the buyer and the seller. It includes the purchase price of the property, down payment and installment and other conditions and covenants annexed hereto.
10. Pay the Deposit
Before signing the MoU, you must pay a down payment of 10% of the property value. This payment guarantee you that you will proceed with the purchase of the product.
11. Register the Property
The second step is to go to the Dubai land Department and registered the property. This involves paying a registration fee which is four percent of the value of the property and make sure that the title deed is in your name. Your lawyer or estate agent can help you with this procedure.
12. Complete the Transfer
Finally at the agreed date the last payment is processed then you are given the property. Make certain that all of the papers are signed and that you get the keys to the property in question.
13. Manage Your Investment
After finalizing the purchase it is necessary to decide whether the property will be handled by the owner or by a property management company. Maintenance and management are some of the most important determinants of the returns on property investment as well as the value of property.