Thursday, February 16, 2012

Guidelines to be followed when purchasing a house in Dubai


Purchasing a house in Dubai can fetch excellent returns in the long-term, although at times, people end up with not-so-good deals. Therefore, briefed here are few guidelines to be followed when buying a house in the city, as explained by few real estate brokerage firms to ‘Emirates24/7’.

Do not get carried away just by the looks of the house

Often, buyers go by the look of the house, without asking for a structural survey of the place.  People tend to purchase existing properties, without carrying out any structural and condition surveys of the properties that they plan to buy.  However, experts believe that such a practice may be bad in reality. According to Charles Neil, the Chief Executive Officer at Landmark Properties LLC, prior to purchasing property, one should always inspect certain aspects such as maintenance records of the house, and whether the original owner got the property professionally snagged, and if the annual maintenance contracts are in place.

Look into any extra charges involved

Majority of buyers in Dubai, just take into account only the selling price and fail to look for the other charges, which would eventually add up among the monthly bills to be paid. One need to have good knowledge of service charges and find out in what manner this is included on the property to be viewed. Also, several buyers do not understand which mortgage will work for them in the long-run, and hence it is best to seek professional advice, says Vineet Kumar, Head of Business Development, Asteco Property Management.

Rightful ownership and registered agent issue

It is vital to check the credentials of the seller. There have been several cases wherein people were duped into purchasing the property from somebody, who in many cases were not the rightful owner. Hence, going to the wrong agent can add to the problems. Buyers therefore need to check if the seller is the true owner authorised to sell the property, and if he is a bona fide and properly registered with RERA, Neil suggests.

Be cautious when purchasing off-plan properties

When purchasing an off-plan property, it may be an affordable option, but, several times, the buyers can get into a deal without being clear about what it is all about.  Kumar says, it is best to ask yourself, if the house you plan to buy is for rental investment or for capital appreciation.

Distance to workplace should not be a priority

Experts emphasize that distance from your potential home to the workplace should not be the deciding factor, as this may not be a permanent factor, and is bound to change. The focus should be on location, and budget and quality of life, rather than commutation to office, said Vineet Kumar.

Do not invest much on refurbishment

Usually when people move into new homes, they spend a considerable amount in moulding it to suit their desires. However, this will not add to value of property, and will not help if the owner intends to sell home after few years. Investing nearly Dh.100,000 in doing up the Kitchen, bathrooms, and changing the flooring, etc., will not anyway make the property dearer. This may lead to higher pricing when offloading the property, although it may not bring in enough buyers.

1 comment:

Dubai Real Estate said...

Yes, According to above information is very common but no one focus on this points which are mentioned in this article.I am a big fan of Dubai and and article too. You can write new post on Dubai recovery because Dubai real estate economy recovers getting fast again.