Home buying is no joke if you are someone investing your life’s savings in the big dream of being a homeowner. A real estate investor looking for a second home to rent out, needs to be cautious too. After all, everyone looks at real estate as an alternative to savings, to earn higher rate of returns and to find a nest to spend the rest of their life with their loved ones.
MyVilla.com, one of the online property portal in Dubai, brings together all authorized Real Estate Advisors and Brokers to enable potential buyers to connect and find the right investment within Dubai.
The team at myvilla.com met with some of the top real estate market experts in Dubai and identified the top five risks that an investor must avoid during the home buying process.
- Freehold v/s Leasehold areas: It is important to talk to your real estate broker to understand the difference between freehold and leasehold properties in Dubai. Freehold properties are available in specific areas, as defined by the government, where anyone can buy real estate; while leasehold properties are properties that are given on lease by a local landlord for a period of more than 10 years up to 99 years but cannot purchased outright.
- Picking the wrong neighborhood: Dubai’s modern communities provide the necessary amenities that residents may require. However, there are areas with affordable housing that may suit a homebuyer’s budget. Based on proximity to the workplace, educational institutions and healthcare, buyers need to strike the right balance and choose what’s best for them and their family.
- Failure to Await Mortgage Approval: Most buyers jump the gun by booking a property in advance before securing loan approval from their banks. Buyers also tend to stretch the budget limit when choosing a property. A specialized real estate broker can work through the documentation and help you secure the mortgage swiftly.
- Skipping Home Inspection: If you are buying a home from a reputed developer and investing in an “off-plan” property, chances are, you may get the chance to view the property firsthand. If it is a “resale”, then make sure to consult with a professional home inspector personnel, to check the house for faulty fixtures, plumbing, and electricity. Most reputed real estate companies carry out this task for you.
- Hiring an amateur: It’s best to seek the help of a professional lawyer and RERA authorized agent from a legally registered real estate agency to preview all documentation work and carry through the deal to completion, down to ownership transfer.