Buying property is not an easy decision. So, it is wiser, to question oneself – what is the purpose of your real estate investment, are you looking for a long-term asset or just a good bargain. Measure the pros and cons before you take the leap.
Depending upon your purpose the overall process of property research would vary. Other factors like your family also play an important role. A well-maintained estate, a good neighbourhood definitely add worth to the property. But there are many other factors, outside the control range of property owners, that influence the property prices. The following are some notable factors that can impact property prices.
Accountability and transparency
The Dubai Land is Department (DLD) was founded in January 1960. The purpose of this organisation is to manage all essential matters related to the purchase and sale of commercial purpose properties in UAE.
The arm of the DLD is the real estate regulatory agency, RERA provides a highly transparent legal framework and brings together various reputable developers. They are also supported by other business sectors like banks, insurers and law firms. As a result, it is easy to find investors who wish to invest in property for personal purposes.
Understanding the costs involved
Before investing in any property, it is important to evaluate the cost’ structure involved in purchase, which not only include the cost of buying the property but also managing and maintaining it later are equality essential. Apart from the primary costs, other secondary expenses such as the agent’s commission, registration fees, bank charges (in case of a mortgage), service and maintenance charges should also be factored in.
However, all these costs depend upon the purpose of purchase – are you planning to make the property your home or are you buying it for rental purposes? Because this decision will decide the location and type of property and will eventually be a major deciding factor of the cost of the property.
Purchasing to live
When buying a property for personal use, it is essential to list down the preferred communities/localities. Also, you should keep in the mind the duration for which you want to stay in that property – long term or short term? We should always know about what is resale market in the neighbourhood? Next consideration is the budget. Filter the constraints to find the best suited property for you.
Buying to rent out
In real estate perspective, Dubai boasts of some of the best rental yields in the world. It also provides various investment opportunities for overseas residents. Your residence is solely based on your personal choices but it is commercial properties and freehold properties that need thorough research.
Evaluating the most popular neighborhoods, the type of units that would yield best rents, quick selling opportunities that provide good RoR; needs lot of homework.
Making an offer
While buying a property in Dubai, have an absolute clarity about the market price and propose an offer price that has room for some negotiation.