Top 10 Mistakes to Avoid When Buying Property

Top 10 Mistakes to Avoid When Buying Property

Buying a property in Dubai is undoubtedly a good investment, no matter what your purpose was. However, it is a long-term commitment, which means that you must study all angles before taking such a step. In this article, we mention ten mistakes you should not make before buying a property in Dubai, if you succeed to avoid them, then you are on the right track!

1. Choosing the wrong location

It really does not matter if the property has everything you have ever dreamed of if you got the wrong location. Think about your needs when choosing the right area, such as its proximity to your workplace, public transportations, schools, shops, etc.

2. Not scouting the neighborhood

Knowing every detail about the neighborhood will help you avoid unpleasant surprises in the future. Ask these following questions to make sure:

  • Are the constructions work over?
  • What are the long-term plans for this area?
  • Have properties value in the area been declining or rising?

The answers will help you determine whether you can move right away or if you have to wait a while longer, if it will become a major street or a crowded site, and finally, if you are making a safe investment!

3. Ignoring the inspection of the property

Hire a professional inspector to look for any errors in the property, such as interior plumbing and electrical systems, roof, attic, floors, windows and doors, foundation, basement, and structural components.

4. Not hiring a real estate agent

Do not underestimate the value of real estate agents, they are well aware of property prices in different areas, they know how to negotiate, and they will make the transaction process much more manageable.

5. Overpaying

If you do not have a qualified agent, you may fail in estimating the right price of the property. You should take into perspective things like the quality of building materials, the infrastructure of the place, etc. Also, never forget to compare the price to the other properties’ prices in the area.

6. Rushing to get any mortgage

People tend to make rash decisions when they get excited. However, take your time when searching for the best mortgage deal that suits your abilities, and keep track of interest rates day by day because they can easily differ.

7. Settling too early

It could be frustrating if you spent too much time and effort to find a suitable property with no luck. But do not let that make you buy anything just to be done with it, or making a deal prematurely. Keep in mind that if you changed your mind after purchasing, then you will have to pay the transaction costs again and the closing costs for the mortgage, not mentioning the costs of moving.

8. Not having a budget plan

Getting over-excited over buying a property is not always a good thing. Be patient and try to wait until after signing the contract to start buying the furniture and other necessities in order to avoid running out of money before closing the deal. Keep in mind the extra fees that you might pay like insurance, property tax, etc.

9. Forgetting about the closing costs

Make sure to have enough budget for the closing costs, such as attorney fees, recording fees, survey fees, brokerage commission, etc. Also, keep in mind that there could be hidden costs you did not expect.

10. Not studying the contract

Although contracts might be hard to understand, never skip reading them! You have to know what you are committing to before signing, read the terms and conditions thoroughly, and ask for advice if there was any confusion.

Buying a property does not have to be stressful, just be patient, search, ask for advice, and think twice! We hope you found this article helpful. And here at Lavista, we always ready to help you go through the process smoothly and safely.

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