When investing in real estate properties, especially those in other countries, you’re not just investing in a piece of land but also in the country’s economy. In fact, this is one of the biggest reasons why more and more people are considering buying properties in Dubai. The emirate and the rest of the country’s economy continues to grow at a good speed.
If you are looking for a property to buy in Dubai, a villa can be a good option. Most MBR City villas for sale, for example, are synonymous with luxury, quality, and comfort. They are built in a neighborhood surrounded with a lush green outdoor atmosphere.
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| Villa in Dubai |
Wherever in Dubai you may consider investing, before signing the property purchase contract, consider these five crucial factors first.
1. The physical condition and soundness of the villa
The villa’s physical condition is the first thing you should consider when buying a villa. Checking the soundness of the property is crucial. Does it require refurbishment?
It would be a better idea to ask a real estate surveyor to inspect the property so you will know if it has issues that need to be addressed, how much the repair will cost, and how long it will take for the renovations to be completed.
If the repair is something you can pay for without harming your finances or if it can be done within a short period of time, then you can proceed to buy the villa — after factoring in the costs of repair or renovation work and getting all the details on paper.
2. The villa locale
The cliche “location, location, location” is a cliche for a reason — simply because most investors base their property purchases on location.
The neighborhood of the villa is a crucial factor to always consider. Make sure to choose one in a pleasing, secure, and livable environment. Check on what community amenities there are or planned for, and existing available facilities nearby such as a grocery store, hospital and schools. You should also think about the future of the place you are investing in. Is it near the Dubai Metro? If not, does the government have plans of expanding in that area?
These are all key considerations whether you are planning on living in the villa you are considering, are thinking of renting it out, or selling it somewhere down the line.
3. Taxes and Fees Payable during the Buying Process
During the buying process, there will be fees and taxes that you should pay. These expenses must be taken into account when you are setting your budget. Remember that most of these are not shown in the listing price.
Once you found the right villa to purchase, you and the seller must agree on the terms of the sale. At this point, you may need to give a deposit, which is around 10% of the purchase price.
The official transfer of property ownership will be done in Dubai Land Department. At this point, the remaining purchase amount must be paid to the seller. Moreover, you must pay a one-off land registry tax amounting to 4% of the purchase price, 50% of which is paid each by the seller and buyer. You should also pay an admin fee that goes to the Dubai Land Department. After that, a new title deed will be provided.
But if you are taking out a mortgage on a portion or the entire purchase price, there are added fees. These include the mortgage fees, which is 0.25% of the loan amount, paid to the Dubai Land Department.
4. The Cost of Getting Insurance Coverage for the Villa
Before buying a villa, you must consider the kind of property insurance coverage you want for your property. Check at least three insurance providers and compare their offerings. Don’t just opt for the cheapest; instead, determine if the cost of their offered coverage is reasonable.
5. Villa Management/Maintenance Costs
Maintenance costs are a significant and recurrent expense each year. From plumbing, cleaning, utilities, AC servicing, and more, you have to make sure that you have enough money for property maintenance services.
You can either maintain your villa on your own or perhaps contact a villa management firm. If you do have a budget, the latter is a better option. They can inspect your property and determine which areas in your villa need repair or replacement. They can also contact repair experts to deal with such issues. This way, you are sure that your villa is always in excellent condition.
Investing in real estate is indeed a good way to diversify your portfolio. A villa is a good option because most Dubai villas for sale come with the luxury of a tranquil and calm gated or planned community that is fully equipped with modern amenities.
Being self-contained, these communities provide different facilities like shopping complexes, parks, retail outlets, hospitals, schools, children’s play area, and restaurants. Some villas also come with their own garage, private sauna and spa, pool, library, and maid’s accommodation. But for your investment to be successful, you must carefully consider the fundamentals factors mentioned above.
March 8, 2018
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