Dubai is brimming with new opportunities for job seekers and investors alike. Expatriates from all over the globe have directed their attention towards this city of Gold. They are pouring their hard-earned savings into the Dubai marketplace, with high ambitions to gain profitable rates on investments out of it. This has especially escalated in recent times when Dubai Expo 2020 beautifully showcased the hidden potential. As a result, the attention and influx have dramatically increased.
Owing to the escalation in the number of people choosing to live and build in Dubai, the property market has witnessed substantial growth. That too, in a matter of a few months only! It is anticipated that this growth will continue to increase for quite some time, allowing many businesses to profit out of it. Insight from industry experts also showcases the increase in the number of people searching for viable property investments.
Versatile Property Options
The property market warmly welcomes the expatriates in Dubai. Check any property portal in UAE and you will come across abundant listings. With numerous property options available, they can invest in anyone that they feel like. The availability of apartments, houses, townhouses, penthouses, and villas keeps their options wide. However, for the new entrants, apartments remain a viable option. Compared to the other ones, these are affordable, yet offer great quality and standard of living for the residents.
However, there are certain things that you need to become familiar with, before moving on to purchase the apartments. Read ahead to know more about them in detail:
Credit Score
If there is one thing you should avoid at all costs, it is making assumptions. When purchasing a property, you need to be sure of everything. You cannot assume to get a certain amount of loan or financial assistance from any monetary institute. They also take into account the debt and credit history of the payments and grant you the mortgage score. The higher the score, the quicker the process will be.
Error-free Reports
We are humans and we make mistakes all the time. Therefore, it is crucially important to thoroughly check and recheck the report. If there is any slightest error or any ambiguity, make sure to eliminate it right away. Else, they can cause some dispute, and create hurdles in your purchase of an apartment.
Mortgage Payments
Financial estimations are a major step in acquiring the properties. However, one should not expect that they will get the loan the way they had estimated. The reality can get different and as a result, the buyers might have to search for other properties that suit them. Therefore, it is important to calculate the lump-sum mortgage payments and have similar properties in sight too.
Debt-to-income
The debt to income ratio calculates the money that is earned compared to the one sent out. In this ratio, debt is inclusive of the financial obligation of the lenders to owe money to only. The rest of the payments like phone, internet, groceries, gas, etc. don’t count. Instead, they have to be paid separately.
The minimum monthly payment is added for each category and divided by the gross monthly income (exclusive of tax). The answer is multiplied by 100 to give the DTI ratio. Make sure your DTI ratio is less than 43%, else you will not be granted a loan by the lenders.
Pre-approve the Property
Getting the property pre-approved by the lender. This way, they will look into your finances and let you know the possibility of you winning the property or not. If they approve it, then there is a higher probability that you will get the loan too. Doing this also saves you time to acquire the property adequately.
Realtor and Property Search
Make sure you do your part of the search to find an adequate realtor. Try asking them questions and inquire about the clients served, houses sold, references, experience, goodwill, response time, fees, and suggestions. Also, make sure you do not hire the first realtor you meet, it can turn out to be a disaster. Instead, search before hiring one.
Similarly, hunt down the apartments for rent in Dubai. Visit the locations, check the flooring, interior, exterior, location, commute, accessibility, facilities, and amenities. Make sure it gives you the comfort and happiness of your future home that you want to come back to, after the end of every day.
Final Checks
In the end, take into account the cost factor and the negotiation step. Do it wisely! Make sure you know what you are asking; a drop in price or quality accommodation. It will help you negotiate accordingly.
Moreover, make sure to get the property inspected. Structure, maintenance, and other associated costs will be brought up in this initial inspection. It will help you in making a safe decision. No one wants to move in, and start making the amends right away! Once satisfied, the buyer can move towards the closing phase and get the key to their new home.
In all, make sure to look through and don’t rush through the process. Take time, inquire and prepare ahead before binding yourself to the contract.
