تكاليف إضافية يجب مراعاتها عند شراء منزل في دبي
In the past, the prices of properties were extremely high, so buying a house or investing in a property in Dubai sounded like an impossible dream. Now, more affordable mid-market housing options have been created, and the prices are steadily declining to more attractive entry points. Therefore, it has become wiser to buy a house than to rent one. Why? Because monthly mortgage repayments are less than monthly rent, you will have the added value of capital growth on your assets. If you have made the decision to buy a house, there are important expenses to plan for ahead of time, in addition to the price of the house itself.
Dubai Land Department Fees
All purchases must be registered with the Dubai Land Department (DLD) within 60 days of the transaction. If they are not, it is not a valid purchase. DLD fees are 4% and should be divided 50/50 between the buyer and the seller. However, the buyer usually pays the whole amount. Moreover, the buyer also bears the cost of the Property Registration Fee. The Property Registration Fees for a property costing below 500,000 AED, 2000 AED + 5% VAT is applicable and for properties costing above 500,000 AED, 4000 AED + 5% VAT is applicable. If the home is bought with a bank loan, the buyer must also pay 0.25% fees of the total loan amount to the DLD to register the mortgage against the property.
Agency Fees
It is crucial to have a good agent during all the purchasing process engaging his services will raise your property buying cost by 2% plus VAT. He will give advice about the property you are buying, the community or developer you are buying from, and ensure that you have all the information needed during your journey to getting a house of your own.
Mortgage Fees
If you are completing your purchase with a mortgage, you need to pay 1% of the loan amount + 5% VAT bank mortgage arrangement fees and between AED 2,500 – AED 3,500 + 5% VAT as property evaluation fees. The buyer should pay these amounts to the banks. If the seller has a mortgage registered, the buyer will first need to pay out the seller’s mortgage to receive a No Objection Certificate (NOC) in order to process the property transfer with the DLD.
Initial Deposit
The buyer of a house is required to pay a deposit to secure the purchase in both primary and secondary markets. For ready property purchases in the secondary market, the initial deposit is often 10% of the purchase price payable to the seller via check.
Services Fees
If the ownership of the property has been now transferred to you, there is an additional cost that you should consider which is services fees. Annual maintenance charges on a property are payable to the Dubai Land Department based on the RERA Service Charge and Maintenance Index. This index determines a specific charge per square foot and varies by community.
Insurance Fees
Though home insurance is not compulsory in Dubai, it is highly recommended. It offers you protection from potential loss damage or theft, accidents, fires, or natural disasters. But if you are getting one, basic home insurance will cost about 1000 AED.
Money is just a variable in the equation. There are other factors that you should consider before buying a property. But still, money is a very important factor. So, have you set aside enough money for all these expenses? Did any of the expenses surprise you? Are there any other expenses that we have not mentioned? Tell us your opinion in the comment section down below.