October 7, 2018

Keep these 10 Factors in Mind when Buying a Property in UAE

There are many important things to keep in mind when buying a property in the UAE. Here are the top 10 factors that could help put your mind at ease when considering property investment in the UAE.

A home that you can easily afford

UAE housing market has become synonymous with luxury and grandeur. However, population growth in the country has necessitated the creation of affordable housing. Builders are now paying attention to affordable housing units to fulfil the housing needs of young families and first-time home buyers. One can see housing projects containing small townhouses and apartments coming up in different parts of the country.

The investment that gives attractive ROI

UAE remains one of the most attractive property investment destinations across the world. Real estate investment in the UAE yields a much better rate of return than most other cities in the world. Rental income from residential properties in UAE is also quite attractive for the investors. However, you need to do your research about the housing market before taking a decision about buying a property in the UAE.

Earn rental income during hot summers

If the heat of the desert bothers you, you can plan to spend your summers away from the UAE. You will find many options to rent out your property during summer months to earn attractive rental income. For this purpose, you need to buy a home in a good location. It should have the features considered attractive by the tourists.

You can pay off your mortgage with the rent you pay now

You have to pay a high rent for a home in the UAE. Why not pay this amount every month to a lender to eventually become the owner of a property? If you can save money for down payment, the monthly rent you are paying now can be used to pay your EMI’s to your lender.

Keep location in mind

If you want to see your wealth growing, you must choose the location of the property wisely. Prices in some locations appreciate at a faster rate than others. You must choose a locality with developed infrastructure and access to all modern amenities. Do your research on new housing projects to learn about their features, amenities, and lifestyle offered.

Make your portfolio diverse

You should know your goals when investing in a property whether they are to pay for the higher education of your kids or to save enough money for your retirement. A diverse real estate investment portfolio allows you to attain your financial goals easily.

Save as much as you can to pay for down payment

You need to start saving money every month to be able to pay a down payment ranging from 20-25%. Lenders ask UAE citizens 20% while foreign nationals are required to pay 25% of the value of the property as down payment.

Consider going with Off-Plan properties

You have to decide between ready to move and those that are under construction when buying a property in the UAE. Both types of properties have their own pros and cons. With off-plan, you can get more flexible payment options from the developers.

Ownership allows modifications and sense of security

You cannot hope to carry out customization in a rented place, but you will have the freedom to make those changes when you own your home in the UAE.

Go with a licensed realtor

The government of UAE has made it necessary for all brokers and realtors to have license form the authorities. This has been done to protect the interests of the investors. For your peace of mind, check the agent's credentials before entering into any agreement and making any payments.