The strong economical position of Dubai encourages investors to buy property here. If you have property that has worthy over AED1 Million, then you can also apply for residential visa and avail multiple citizen rights. How to buy off plan property in Dubai? It’s the most asked question of investors which answer we are going to discuss in this article.
- Hire a Professional Agent
It’s always recommended to hire a professional real estate agent who has good market knowledge and understand the difference between good and bad off plan property. A reliable real estate agent will provide you complete detail about the property and won’t leave you on your own to deal with the developer once the deal is done. To find a reliable real estate agent, you can consult a friend, search online, or get help from a person who have already brought off plan property.
- Don’t Ignore Cost Mentioned in the Detail
Many developer appeal investors by using catchy advertisements such as buy home by paying just AED 3000 per month. However, in actual it doesn’t mean that you need just AED 3, 000 to start the process as there are different types of fees you have to pay before starting the actual process. Dubai Land Department and Real Estate Regulation Authority compels buyer to pay 4% registration fee at the time of purchase no matter you are paying 5% or 40% down payment. Likewise, real estate agents take 2% commission while you should always ready to pay AED 1, 500 to AED2, 000 administration fee. There are some other penalties and fines you have to pay to DLD if you fail to pay down payment on-time.
- Know the Type of Property You Buy
There are two types of properties available in Dubai, i.e. commercial real estate property and residential real estate property. To buy both types of properties, you have to pay 5% value added tax (VAT) other than paying 4% registration fee and 2% agent commission.
- Decide the Area for Off Plan Property
Always consider the area in which you are going to buy property. Can you wait 8-10 days to get profit or you are expecting it within a few months? You must have a clear answer of this question as it’s very important to decide the location of the property.
If you are buying property at developed commercial area, then you have to pay 100% payment when purchasing the property. Many people don’t like the idea as they think they are paying full amount for a property that isn’t event completed yet. But, such type of properties brings huge benefits for buyers. On the other hand, buying off plan property in an upcoming community may take many years to get profit, but the sale prices are very attractive for these properties.
- Don’t Ignore Project Type
Always check developer’s profile and history before buying a property. Make sure the developers are not involved in any fraudulent cases. Moreover, check the size of the project, development plan, and the time frame the developer is offering for the completion of the project.
- Carefully Consider the Payment Plan and CMA
Make a comparative market analysis once you ensure that the project is worthy for the investment. Make sure that the price developer is demanding is justified with the market rate and the payment plan is feasible for you. verify the escrow payment and also check other financing options available in the market.
- Making a Reservation
Now, you have decided to buy the property and need documentation for the reservation. Dubai Land Department demands the following documents for this purpose:
- Passport Copy
- Visa Copy
- Emirates ID Copy
Complete the reservation form and provide personal information in it. Make sure developer’s official stamp is there on the reservation form when the form is delivered to you. After reservation form, you have to sign agreement form which you should read carefully before signing or making any payment. Pay value added tax and agent’s commission fee after signing the deal and get pre-registration certificate Oqood from the government. Your developer will apply for it on your behalf which you get within few weeks.