Changing from a renter to a homeowner can be a difficult transition. It can be really intimidating at times. First-time home buyers have hundreds of options to choose from. This makes it altogether more difficult for them to choose the perfect house for themselves to call a home.
There are a lot of things to consider when buying a house for the very first time. In the UAE you get as many options as you need according to your comfort. It is you who has to make the right choice for your dream house.
So moving forward with this article we will explore answers to all the questions which pop in our head when we think of making our first purchase for a house.
Why to buy a house in the UAE
UAE as a nation has developed itself so much that it’s the main hub for all investment and tourism purposes. It has a population of over 9.5 million people and they are increasing day by day. This makes it obvious that every property owned there has to value to it.
In the coming years, it will further move up in its ranking amongst the most developed nations. It is still one of the most well-maintained and disciplined nations. This gives it a bonus point as to why one should buy a property here, be it for investment purposes or personal use.
Which property to invest in?
As a first-time buyer, you must not get intimidated by the number of options available to you. You must stick to your budget and look at a property, keeping in mind long term benefits.
There are three categories of houses available:
- Freehold
Property that is owned outright and has few restrictions is known as a freehold property. This style of property and the land it stands on can be rented out, renovated, sold, or passed down through generations.
Most of these properties are land for future development. Expats can buy these properties with the help of the developers. Developers with a government-approved licence can only sell and construct on these plots.
- Commonhold
The term “commonhold” is similar to “freehold,” except it refers to both residential and non-residential units in apartment complexes.
Commonhold properties are similar to condominiums in that they can be bought, sold, upgraded, or passed down as inheritance, but owners must also pay common charges for the care of public facilities (such as elevators, lobbies, and the building grounds) and amenities (like gyms and or pools).
- Usufruct
Usufruct property is the same as leasehold property. Here a person leasing the property can make changes according to himself. However, those upgrades and changes won’t belong to him but the owner. It’s the only limitation of this kind of property.
Once the lease ends, it would all be taken under by the original owner and he/she won’t reimburse anything to the person who has taken the place at lease.
Things to take care of while buying a house
1. You must set a budget and work out the things according to those finances.
Accumulation of finances can be a difficult task for first-time buyers and thus they must follow a well laid out plan for their funds. You can either pay cash or take a mortgage.
2. You must gather all the required documents if you are planning on taking a mortgage.
Documents required:
- Current address proof
- Passport and its photocopies
- Six months’ recent bank statement
- Active visa
- Any documentary proof which shows your income
3. Before choosing the correct place for yourself, look at all the internal and external factors. Location, resale value, in-home facilities, transportation access, etc.
By looking at all these factors, you must then choose the perfect home you have always desired.
4. Choose the community you want to live in. It plays a major role in how life turns out to be. Generally, people choose a relaxing and peaceful community that has all the amenities available like schools, pharmaceuticals, supermarkets, etc.
5. You must choose an honest and trustworthy broker or developer. The agent must have complete knowledge and an approved license.
What steps to follow when you place an offer on resale property
You must follow a systematic procedure for buying a property and it should go in the following order:
- Place an offer on the property that interests you
- A Memorandum of understanding must be drafted
- Registration of MOU with a deposit of 10% of the value of the property
- The mortgage must be finalized and a no-objection certificate must be acquired.
(A fee will be charged by the developer in case the value of the property exceeds AUD 500)
- Sales and purchase agreement must be completed
- Deeds must be transferred and payment should be made for the property
This brings us to the end of the guide for first-time buyers of property in the UAE. It covers all the aspects and tells you how to go about all the procedures.
I hope this gives you a wide idea about how to own a property in the UAE.
Go and make your first home purchase the best one by investing in beautiful houses in this global hub.
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