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5 mistakes to avoid when buying a home in Dubai

Buying a house is no joke if you are investing your life’s savings into it. A real estate investor looking for a second home to rent out needs to be cautious too. Top real estate market experts in Dubai and identified the top five risks that an investor must avoid during the home-buying process.

1. Failing to distinguish between freehold and leasehold

It is important to understand the difference between freehold and leasehold property in Dubai. Freehold properties are available in specific areas, as defined by the government, where anyone can buy real estate. Leasehold properties are only available for lease by a local landlord for a period of more than 10 years up to 99 years; they can’t be purchased outright.

2. Picking the wrong neighbourhood

Dubai’s communities provide the necessary amenities that residents may require. However, there are areas with affordable housing that may suit one’s budget. Based on proximity to the workplace, educational institutions and healthcare, buyers need to strike the right balance and choose what’s best for them and their family.

3. Failing to wait for mortgage approval

Most buyers jump the gun by booking a property before securing loan approval from a bank. A specialised broker can work through the documentation and help you secure the mortgage swiftly.

4. Skipping home inspection

If you are buying a home from a reputed developer and investing in an off-plan property, you may get the chance to view the property first hand. If it is a resale, then make sure to consult with a professional home inspector to check for faulty fixtures, plumbing and electricity. Most reputed real estate companies carry out this task for you.

5. Hiring an amateur

It’s best to seek the help of a lawyer and Real Estate Regulatory Agency-authorized agent. The agent will assist in previewing all documentation work and carry through the deal to completion, down to ownership transfer.

Source: Gulf News, 2018

If you want to learn more about investing and living in Dubai please contact Elite or call +9712452300. One of our Elite representatives will get in touch with you shortly to answer your queries.

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Elite been developing residential projects in the UAE for the past decade. With ten residential towers successfully completed we have handed over 3,500 apartments to our customers.

Ten Completed Towers
3,500 Occupied Apartments
3 Billion AED Elite Stock Sold
Leading Independently Financed Developer