February 21st, 2017 by Own A Space
Universally, UAE has ranked as the best country for first time home buyers. Property rates witnessed a decline of -7.96 % last year while average real wages were increased. Young expats are struggling to get on the property front thereby spending lots on renting.
Picture Courtesy: www.khaleejtimes.com
Prospective buyers condemn the new mortgage regulations which make the transition difficult for them. Initial down payment requires putting down 25% of the property’s value before taking a mortgage for a ready property.
Even 75% LTV contribution from the bank is around one-third of the property rate. 7.5% of the value includes stamp duty, brokerage, loan arrangement fees, registration for mortgage charge, etc. some experts opines that it’s good putting down 25% of the property value as equity for not overleveraging the buyer.
Reasons which incentivize the first time buyers when it comes to real estate prices in UAE are a lower rate of interest, attractive payment plans, and lower property prices. They are also more likely to go for readymade properties, however, off plan are cheaper and provide flexible post-handover payment plans.
Picture Courtesy: www.arabianbusiness.com
50% of the new stock in Dubai this year has come up in suburban apartment districts like Dubai sports city, Dubailand and Dubai silicon oasis. Properties are priced between .8 million to 1.5 million making them affordable for first time home buyers which generally prefer ready properties because they are looking for directing their rental cheque towards mortgage payments.
Picture Courtesy: www.coldwellbanker.ae
Clues for UAE’s first time home buyers
- Place alternate options on hand
You might have good thoughts about an area because you have heard about it or have been already living there. However, it is always nice to keep other options available too and see other communities which might fit your needs better in low rates as well.
- Once you search is narrowed as per your preferences to an area, find a consultant who is the specialist in that area.
- If you are an investor and interested in higher capital appreciation, consider off plan property.
Mistakes often made by Beginners
- They often miscalculate the down payment amount required to give. Advertised down payments have several other additional costs included as well like transfer fees, agent commission, mortgage fee, etc.
- They often take quick decisions regarding where to take the mortgage loan from, without considering the alternatives
They consult too many agents about a single property.
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