6 Factors Expats should consider before buying property in Dubai
One of the most critical elements to consider before buying a property in Dubai is its location. Individuals looking to invest in an apartment building or purchase a property in Dubai should research the best areas for future. Some of the city’s prime locations, such as Peninsula in Business Bay and Six Senses Residences in Palm Jumeirah, are associated with unique facilities that offer opportunities for a quality lifestyle.
Therefore, investors should be aware that this could be beneficial to them. Searching for such properties can be time-consuming; However, fam properties brings you a list of six essential aspects that you should consider before investing in the real estate market in Dubai that can offer expats long-term returns.
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Research and Observe Market Statistics:
It is hard to decide on a particular location when there is a massive range of very tempting options. If you want to gain the best ROI (Return On Investment), it is essential, to begin with, your research of the real estate market.
As an interested investor, you can also find out about recent trends, forecasts, and investment patterns. Newer investment projects in Dubai could be more engaging for investors.
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Affordability:
One of the essential elements considered when buying a property in Dubai is affordability. A person’s monthly housing costs may not exceed 25% of their total income. Your budget should also allow you for upfront payments. It could account for almost 9% of the property’s total purchase amount.
As a property owner in Dubai, you also need to keep an eye on the payment of annual service charges and maintenance fees.
Currently, the real estate market in Dubai has become a buyer’s market due to the low property prices caused by the COVID-19. Therefore, this is an excellent time for expats searching for discounted homes and property in Dubai for investment purposes.
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Rental Yields:
If you want to rent out your property in Dubai, you must focus on how much money you will make in return. It allows you to assess whether the potential rental income is enough to cover your mortgage, repayment, and maintenance costs. Generally, investors can earn gross returns between 5% and 9%.
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Consider Tenure Before Buying a property in Dubai:
Before investing in the real estate market in Dubai, you should assess the overall length of your intended stay in Dubai. It is crucial to help you determine the overall value you can get from your potential ROI. However, if you are unsure of your possible engagement or long-term plans, renting a property in Dubai is a better option.
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Consider Population Growth:
When investing in the property, pay attention to the fundamentals of population growth. When people flock to an area, demand is high, and we have a healthy real estate market for buyers to discover the best properties and get involved.
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Visa Property Buying in Dubai:
The properties valued at AED 1 million or more in the UAE can help you get a residency visa. It may be subject to specific instructions.
There are primarily two types of residency visas generally available in Dubai. One of them is a six-month multiple entry visa. The other one is a two-year residency visa. Property owners also have the opportunity to sponsor residency visas for their families.
A property in Dubai that has been estimated at AED 5 million or above that has no particular mortgage value associated with it and has been held for 36 months or above can help prospective foreigners or expatriates obtain a five-year or longer residency visa. It depends mainly on the specific funding requirements.
I hope that the given information is useful for you. For any query or further information, you can visit fam properties.
