The five most common home buying mistakes

As you enter the world of real estate, there are many aspects you need to consider to avoid the most common errors. Whether it is because of inexperience or lack of the correct information, it is easy to make mistakes as you buy homes in the UAE. Thankfully, as long as you do sufficient research and reach out to the experts, acquiring a property can be a straightforward and rewarding process.

In this article, we will explain the five most common mistakes individuals make as they buy a property. From the most frequent mistakes to the ways you can avoid them, here is everything we will cover:

1. Which are the five most common home-buying mistakes in Dubai?

2. What do you need to know before buying a home in Dubai for the first time?

3. What are the extra costs to consider when buying a house?

4. Why should you purchase a home?

5. Who can buy a home in Dubai?

6. Why do you need a real estate lawyer to buy a house?

7. How can Connect Property help you buy homes in Dubai?

1. Which are the five most common home-buying mistakes in Dubai?

Buying a home is a very emotive process. Whether you are a first-time homebuyer searching for a started home or an experienced homeowner prepared to upgrade or downsize your property, the steps to buying a house are alike. As a major lifetime decision, it is vital to avoid future regrets by making common mistakes in the purchasing process. For these reasons, here are the five usual mistakes most homebuyers make and how to stay away from them.

1.1. Not examining your budget

Before you buy a house, you need to know what you can afford. Thereby, taking a deep dive into your budget beforehand will warrant you only consider homes to buy within your price range and not feel the lure to overspend.

1.2. Ignoring the neighborhood

A house is one thing, but the neighborhood that it is in is another aspect to consider. Several homebuyers focus their attention on one particular property and push aside the area or neighborhood it is in. Therefore, you will need to take your time considering your interests before starting searching for houses to buy near you. Then, ensure you encounter a community you feel comfortable with.

1.3. Not having an experienced professional

Even if you are well-versed through the information available online, you still should search for professional advice from an experienced real estate agent early to buy a home.

1.4. Not making a wise offer

A common home-buying blunder is letting your emotions influence the offer. Alternatively, remember to make an offer if you are committed to buying a house based on comparable sales rather than your liking towards it.

1.5. Only viewing at mortgage interests from one lender

You should speak to an expert loan manager to search for prime rates and mortgage products according to your needs.

2. What do you need to know before buying a home in Dubai for the first time?

The transition from tenant to homeowner is one of the intimidating steps to buying a house. First-time buyers face numerous options as they start to search through the house for sale in Dubai. Because of this, there are vital considerations to be careful with at the moment of buying your first home.

2.1 Setting a budget

If you are a first-time homebuyer in Dubai, you may have doubts about how to finance your purchase. Firstly, you will need to establish a firm budget that takes into account added home-buying expenses. The majority of beginners homebuyers take out mortgages even though buying a house with cash is a possibility.

2.2 Choose the ideal home

As you search for houses to buy near you, your selection should integrate the right location with several advantageous amenities at a suitable price for your budget. When searching for your dream property, you should consider purchasing off-plan properties. Accordingly, these properties are frequently more affordable by comparison with resale houses, and also usually come with fund incentives. This results in two prime bonuses for first-time homebuyers.

2.3 Place an offer on a resale house

In case you found interest in buying a resale house, your selected real estate agent will place an offer on your behalf and handle the agreement. Later, your broker will work with the seller’s real estate agent to make a Memorandum of Understanding.

2.4 Putting forward your reservation for an off-plan house

On the other hand, if you want to buy an off-plan home you must contact a real estate developer. Then, you have to fill out and submit a booking form straightaway to them. It is worthy of note that a lawyer needs to check the reservation form. 

3. What are the extra costs to consider when buying a house?

It is important to cover the extra expenses required when you buy a home, since forgetting to consider ongoing costs could result in ruining your finances. That being said, precise knowledge of the actual costs associated with buying a house in addition to the monthly loan payment is crucial information for homebuyers to make an advised budgetary decision. There are many expenses collected by government authorities such as the Dubai Land Department, brokers, property developers, and mortgage lenders.

3.1 Government fees

One of the main requirements is that every purchase must be recorded with the Dubai Land Department within sixty days of the operation. However, if it is not registered within this time, the purchase will be nullified. When the home is purchased through a mortgage, the buyer needs to pay an added fee of 0.25% of the whole loan amount to the Dubai Land Department to file the mortgage against the home. For an individual who is going to buy a house with cash, in any of the home buying steps this expense is not applied.

3.2 Mortgage Fees

Several banks permit buyers to sum up upfront costs to their mortgage to reduce the weight of the start disbursement. Equally important, when buying a home where the seller has a mortgage recorded, the buyer first is requested to pay the seller’s mortgage to acquire a No Objection Certificate to process the home transfer with the Dubai Land Department.

4. Why should you purchase a home?

Dubai was once a small town on the coast of the Arabian Gulf. In recent years, the city has quickly expanded into a major metropolis thanks to a heavy investment in infrastructure. With this in mind, buying a house in this promising area is definitely a good choice.

4.1. Demographic growth

Dubai houses almost 3 million people of diverse origins, most of which rent a property. The city has an annual population growth of 1.5% in a limited area of 1,300 square kilometers. Considering how valuable land can be in this region, it is certainly an advantage to buy a home instead of renting.

Any property you buy in Dubai will increase its worth in the long run. Overall, it does not matter if you plan to have a personal residence or a property for investment. Either way, searching for houses to buy near you is the best economic choice for your future in Dubai.

4.2. Why now is the right time to buy a property

After hitting a low point in 2020, the prices for homes are rising again. The projects that had been halted at the start of the pandemic are resuming construction. Previously existing villas have popularized as individuals opt for properties with more space. As the real estate market regains traction, now is the time with the most opportunities for buying your first home.

It is best that you start the steps to buy a house by planning a purchase strategy and considering your options depending on your budget. Getting the correct information and assistance is vital for success; carefully follow established home buying steps to ensure you avoid the most common mistakes.

5. Who can buy a home in Dubai?

As it stands, buying a house in Dubai is permitted to most individuals regardless of their specific case. Since 2002, Dubai allows foreigners to acquire properties, a decision that greatly benefited the real estate growth of the city. The government has designated Freehold areas where any foreigner can find homes to buy. While there are certain places where only residents are allowed to acquire property, there are plenty of ways of buying a house for a non-resident or expatriate.

Before looking for houses to buy near you, it is recommended that you research any possible limitations to buying a home brought by your specific case. Consulting with a legal advisor is the right way to go to prevent any issues as you follow the steps to buy a house.

Overall, these freehold zones mean a great opportunity for any foreigner looking to buy a home in Dubai. Because of its exponential development, this metropolis is the perfect place for foreign investors looking to maximize their profit. The laws regarding buying a house greatlybenefit any non-resident interested in this market. Furthermore, it also helps the economic growth of the city, as it furthers the interest of the global community for Dubai.

6. Why do you need a real estate lawyer to buy a house? 

Hiring a real estate lawyer is an excellent home buying step that puts you in the right way. Most individuals can deal personally with another party. However, the conditions of the arrangement must be appropriately recorded in a contract for them to be signed and sealed. Lawyers can negotiate on your behalf and also ensure that the contract attaches to all the state laws. In addition, they can address any particular matter that might affect the future usage of the home.

Some other vital service that a real estate lawyer performs is the title search. This way, verifying that the home is free of any impediments suchlike encumbrances or judgments. The process of the title search is essential because it reveals whether the vendor has the legal entitlement to sell the house.

On a whole, having legal guidance makes good business sense due to the complications that come with the transactions of buying a house. Experienced real estate lawyers can safeguard your interests. They guarantee that your proceedings obey the applicable rules of the country where the home to buy comes from. In that way, the resolution procedure can function according to the satisfaction of everyone involved in it.

7. How can Connect Property help you buy homes in Dubai?

Connect Property is an online marketplace that focuses on helping property owners, sellers and renters list their assets. Any person looking for homes to buy will easily find your listing thanks to our website’s intuitive interface. As a company, our goal is to make the home buying steps easier and more straightforward. In this way, any chance of making common home-buying mistakes is lower.

If you feel unsure about the steps to buy a house, our 24 hours support hotline is readily available to assist you. With our help, you can be reassured you are following the right path as you search for homes to buy. You can also explore a wide range of properties throughout the UAE thanks to our database of detailed listings. Using our search tools, filter properties by location, price range, and characteristics.

Your ideal house might be closer thank you imagine. Look into our wide array of homes for sale, and we will give you everything you need to contact the seller and facilitate an agreement.

Would you like to buy homes in Dubai using Connect Property? Contact us for any questions you may have regarding the real estate business. You can also reach out to one of our representatives by sending an email to contact@connectproperty.ae, and you will receive an answer as soon as possible.

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