Dubai is one of the most progressive cities in Asia and the whole world. You can find impressive buildings from left to right, with modern facilities and accommodations at hand. Each area has stores, eateries, and other convenient things that most people need. Not to mention that there are a lot of Dubai properties that are currently offered for potential residents. Here are some of the things you need to know if you’re planning to move in.
1. Know the Process of Dubai Land Department
The Dubai Land Department or DLD is the main authority that you need to comply with to start moving to the city. DLD is the one that regulates and monitors what’s happening in the real estate market place. Getting property has been easier since 2013 because of the issuance of Law No. 7. Still, it would be more convenient if you know what to expect and what to do when buying a property.
2. Get Ready For a Staggering Deposit
Overall, Dubai has a lot of financing options for people who are considering to move in their area. However, each person who is planning to rent or buy properties is required to pay a down payment, which is 25% of annual property rent. Foreigners are only able to buy properties on what they call the freehold areas, which include Um Hurair, Al Barsha, Emirates Hills, and Ras Al Khor. You might also need to open a bank account to drop your deposit.
3. Know the Time Frame of Your Stay
Did you know that most foreign occupants in Dubai are either professional executives that work on famous companies or are ex-pats? And did you know that most of these populations are renting properties? That’s because a lot of people don’t know how long they are going to stay in the city. Longer leases are usually cheaper than the shorter ones and will save you a lot of money. Know the time frame of your stay to find the best offers for long-term ones.
4. Know the Taxes and Fees to Pay
Unfortunately, Dubai implements a lot of tax rules, which might not feel welcoming for first-timers. You have to pay for a DLD transfer fee, a registration fee of AED 2,000 / 4,000 (depending on property price). Mortgage processing fee, mortgage registration fee, valuation fee, property deposit fee, conveyancing fee, and more (if you opted for service from an estate agency). You might have to save more to accommodate these additional fees.
5. Beware Of Scammers
If it’s your first time in getting a property in Dubai, make sure that you directly contact the owner both online and in person. The thing is, a lot of con artists are pretending to be the owner of a property and will ask you for a down payment before disappearing. Make sure to only pay through bank and to always ask for a proof of identity when renting or buying properties for the first time.