Reasons to Purchase Real Estate in Dubai
Published Date: 25th Oct, 2024
Investing in real estate has made Dubai a popular destination worldwide. With its thriving economy, opulent lifestyle, and top-notch facilities and infrastructure, it's no surprise why individuals draw themselves to this city. Owning real estate in Dubai has many advantages, including tax-free advantages, high rental yields, and a stable political environment. Find out why Dubai has become the most popular destination for real estate investments.
Purchase Off-Plan Real Estate in Dubai
Ready-to-move-in properties are typically more expensive than off-plan or under-construction properties. The cost you pay for an unfinished building is a catch, though, because there is an interval between buying it and the delivery of the property. As soon as the construction is finished, the value of the home will rise.
The procedure for purchasing off-plan real estate in Dubai:
The parameters of the deal and the price of the property are agreed upon by the purchaser and the developer.
The buyer signs a reservation agreement and pays the deposit for the reservation and/or the first payment of the invoiced price, where the terms of the contract specify the amount.
The anticipated date of the property's completion is included in a signed Sales & Purchase Agreement (SPA).
Following the signing of the SPA, an Oqood record is produced, acting as a provisional registration till the buyer receives the title deed. Additionally, an Oqood fee, usually equal to 4% of the total purchase price, is paid at this time.
The buyer keeps making on-time payments according to the authorized payment schedule until the entire amount is paid.
When the property is finished, the Oqood is converted into an ownership document in the new owner's name.
Invest in Dubai Real Estate That Is Ready to Move Into
Let's say you want to move into the property as soon as possible, or you want to start renting it out and making money from it. Purchasing a property that is ready to move into will be far more sensible in that scenario. However, choose off-plan if you can forgo the wait in exchange for a better home or an improved spot within the identical price range.
The steps involved in purchasing Dubai real estate that is ready for occupancy include:
Both the seller and the buyer agree on the particulars of the transaction and the price of the property.
Before moving forward with the conveyance of the property, both parties must acknowledge a Memorandum of Understanding (MOU) that outlines the terms of the agreement. Registration of the MOU with the DLD is required. A 10% down payment is made now.
A No Objection Certificate (NOC) from the builder must be requested by both parties in order for the property to be transferred. The NOC issuance is subject to a fee.
In addition to paying a 4% transfer fee at this time, the property transfer must be formally registered with the DLD.
According to DLD regulations, on the day of the property transfer, the buyer must pay the seller with manager's checks. Completing the necessary paperwork and formalities requires the involvement of a bank representative if the buyer is making payments through a mortgage.
The buyer must pay off any outstanding mortgages the seller may have had on the home at the moment of the sale before submitting an application for the NOC.
The property is formally moved from vendor to buyer upon completion of the aforementioned procedures, and an entirely fresh deed is presented in the buyer's name.
Date: 25th Oct, 2024
