Ready to plant roots in Dubai with a freehold property? The key to a smooth purchase is mastering your budget from day one. As a first-time freehold buyer, the transition from browsing listings to getting the keys is thrilling, but hidden costs can surprise you.
Fear not! Here are a few simple ways to manage your budget when buying a freehold property in Dubai.
Know your full financial picture:
Before you start looking at properties, look at your own money. Go to a bank for a pre-approval on your home loan. This tells you the exact amount you can spend. Remember to include all the other costs. These are things like the property registration fee, the real estate agent’s commission, and moving costs.
Look beyond the popular spots:
Properties in very popular areas often have higher prices. Be open to exploring other communities. Dubai has many well-planned neighborhoods that offer great value. You might find a larger apartment or a community with better amenities for the same budget. A short drive can make a big difference to your savings.
Be ready to negotiate:
The asking price for a property is not always the final price. Do not be shy to make a fair offer. Your real estate agent can help you understand the local market prices. Sellers are often willing to negotiate, especially if the property has been available for a while. A successful negotiation can save you a lot of money.
Consider a property that wants work:
A brand-new, perfectly finished home is attractive. But it also comes with a higher cost. Think about buying a slightly older property or one that wants small updates. These “fixer-uppers” are usually priced lower. You can then make repairs and decorate slowly over time, spreading out the cost. This allows you to create your dream home without the big initial expense.
Save for a larger down payment:
A larger down payment means you borrow less money from the bank. This leads to lower monthly payments for your home loan. It also reduces the total interest you pay over the years. It might mean saving for a few extra months, but the long-term financial relief is worth the wait.
Check for hidden community costs:
When you own a freehold property, you will have to pay yearly service charges for building and area upkeep. Ask about this cost upfront for any property you like. Ensure this fee fits into your monthly budget.