Interest in real estate in the UAE is always kept at a high level. Currently, there are a lot of great offers in the UAE market when comparing prices with real estate in Moscow, Singapore, London, Monaco, and other popular places for real estate investment. Moreover, Dubai offers one of the highest levels of ROI – many properties give a profit of at least 7% per year. Emirates.Estate can help you find real estate agencies for rent in UAE. Whether you prefer to rent out your future property or keep it as your own home, Emirates.Estate specialists will help you make the best choice.
When purchasing property there are so many things to keep in mind that we sometimes forget about the payments that are inevitably have to be paid. Let us have a look at some of them.
Bank fee
For mortgage buyers of finished properties in Dubai, a down payment of 25% for expats and 20% for UAE nationals must be paid to the seller in cash. The rest can be financed by the bank.
A down payment of at least 25% is a requirement for expatriate buyers, so this amount must be in place before starting the process. Some people choose to use personal loans.
Interest rates in the UAE range from 2,99% to 5,00% depending on the bank. However, before issuing a home loan, the bank will send a real estate valuation consultant to assess the value of the property. The consultant can charge the buyer from AED 2,500 (USD 681) to AED 3,000 (USD 817) as an assessment fee.
A bank commission is also charged for obtaining a mortgage, which can be up to 1 percent of the loan amount.
Life insurance
Life insurance is mandatory when applying for a mortgage in the UAE. The bank charges a fee for life insurance separately from the loan. This insurance is the only way for the bank to guarantee that the loan will be repaid in full in the event of the borrower’s death. The cost of insurance varies depending on the age and state of health of the person, and also depends on whether life insurance is issued by a bank or a third-party insurance company.
Builder’s service fee
A maintenance fee is an amount that owners pay developers annually to maintain and manage common areas of a property. This includes:
- landscaping,
- security,
- cleaning,
- general electricity,
- pest control,
- and building insurance.
The fee is calculated per square meter. Thus, for each square meter of a property, a certain amount will be charged, for example, AED 150 (USD 41) per square meter per year. The amount due annually is divided by months and is paid directly to the developer.
Real estate in the UAE
The UAE real estate market offers options, no matter what budget is available – USD 100,000 or USD 25 million. After choosing a property that fits the budget, it is necessary to evaluate all additional payments. You should also consider getting a mortgage. Emirates.Estate will help you purchase property in the UAE. You can now go to their website and check out the offers that they have and we are sure that you will find something that will fit your requirements, and, in the future, will be your new home.
