Buying a house in Dubai 2022

Consider these extra costs before you proceed

Having a home of your own is always an overwhelming experience. Although when it comes to places like Dubai, the dream to buy a home remains a dream for many Dubai ex-pats.

Traditionally, you were only allowed to rent the place and not buy it. But with new amendments and changes in the policies, it is now possible to purchase a midrange home in Dubai. The big question is, what costs you will have to consider while buying a home?

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Buying a new home is not just as simple as it seems. It comes with numerous other facets to consider which will cost you your savings. To relieve your stress the underlying guide is drafted. It covers all the essential factors that you need to consider while buying a house and that will charge you extra bucks. So, without further ado let’s proceed and see what these facets are?

1. Government Fees: In Dubai, it’s mandatory to register the purchase of the property under DLD. Besides, it is mandatory to do it within 60 days of the transaction. The purchase will be void if the purchase is not registered under the government-issued laws. The buyer and the seller need to pay 4% of the DLD charges divided into halves among each of those. Although in practice the entire 4% is levied on the buyer.

1. Agent or agency fees: To ensure a smooth journey while dealing with the real estate aspects, you must approach a qualified agency or agent. A real estate agent will charge you 2% along with the VAT after the completion of the deal. The right agent can assess you throughout the search and purchase of the property. Besides, it helps you stay informed regarding all the odds of the market situation.
2. Mortgage fees: If you are dealing with the new real estate with a mortgage, you are ought to pay specific charges to the bank. The bank will charge the buyer 1% of the loan amount and 5% VAT on it. Further, some banks often allow the buyers to add these costs to their mortgage to reduce the burden of heavy finances on the buyer.
3. Initial Deposit: The buyer needs to secure the purchase by paying a deposit on initial as well as final transactions. For the ready property purchase, the initial deposit is 10%. The amount is applicable in the secondary market and is to be paid to the seller via cheque.
4. Service and Maintenance Fees: Once the deal is settled, the buyer needs to pay additional service charges to the Dubai Land Department. These service and maintenance charges vary from community to community. These charges are charged as per the square foot and the buyer is bound to pay it after the deal is fixed.
5. Insurance Fees: You just can’t oversee this aspect as home insurance plays a crucial role. It is not compulsory in Dubai although it is one of the most recommended charges that you shouldn’t avoid. It protects your home from loss or theft giving you extra security.

So, to sum up, if you are thinking forward to purchasing a house or real estate property in Dubai, you just can’t miss out on these charges. There are some essential documents that you need to keep handy while applying for a real estate purchase. Make sure you are thorough with the documentation.

Hope this article helps in knowing the cost of house in dubai with all other additional charges.