Yes, like any other place in the world, unexpected expenses occur while buying property in Dubai. Here are some of these to note:
Broker Commission
Whenever you consider buying property in Dubai, you must consider buying property through a certified and well-experienced broker or agent. Why hire a broker or agent? Fraudulent chances will decrease gradually because they can provide you with an actual overview of the property. Brokers are good sources for finding a property.
In Dubai, a broker can usually charge from 1% to 4% of brokerage charges, the maximum. Highly rated brokers charge more brokerage as they promise you to show good properties. Keep brokerage charges ready by saving 1-3% of the total property charges. Why will you need to go places and places to find property for yourself when you have a broker to do that for you?
Maintenance Charges
Maintenance charges in Dubai are high, and these charges are collected monthly or yearly in Dubai. Why do we pay these charges? Because buildings and society in which you are living need maintenance and need to pay salaries for the overall services such as security guards, floor cleaners, receptionist, etc.
As Dubai provides high-quality living, this high-quality living comes with a higher price because you will pay for the maintenance of more amenities that a developer or property builder offers. These charges cover electricity, gym, pool, play area, and ground utilities.
Transfer Fees
While buying or selling a property, a fee is included confirming that these two parties have exchanged the property for a financial asset or money. This agreement mode requires specific fees for calling the transaction legit.
It is always advised to pay a transfer fee to any property in Dubai and mention that this particular amount is a transaction fee that will be used sooner or later. If a developer does not mention the transaction fees, it will be better to ask them if there is any such fee.
Interest On Loans
If you make less than 100% payment, getting a loan is the only option. Banks will charge more interest for longer payment durations. Usually, the interest on property loans is 10-20%, and customers can pay these loans quickly through monthly options. Most people must consider the interest they will get with the loan while buying property in Dubai.
To avoid high interest on property loans in Dubai, the best thing you can do is make a heavy down payment. As you make more down payments, your loan amount will decrease, and the interest will also reduce.
Mortgage
Banks or money lenders keep something in exchange for mortgage money. Mortgages in Dubai are standard as most of the loans in Dubai are taken through mortgage loans. The financial bodies will only pay if you want to keep something on the mortgage.
In Dubai, cars are common elements of mortgages because cars and vehicles have good value, which can be given to financial institutions for the exchange of money. Another mortgaging element in Dubai is gold, a powerful asset that can be used to take out heavy loans in Dubai.
Shifting Transport Charges
If you are already living in Dubai or moving to Dubai, you still need to pay to transport the goods and services from the old apartment to a new one. Here, the charges of packers and movers are observed; in Dubai, packers and movers charge according to the amount of weight they will carry and how far they will be moving the goods.
The charges in Dubai for packers and movers are high because it is precarious work, but if any of your goods go missing or damaged, they will be covered under the insurance policies. Moving from a different state of UAE to Dubai is challenging, too, because of the vast distance.
Interior Design
The interior of homes in Dubai is unique from apartment to apartment. People in Dubai tend to live a luxurious life and display a luxury lifestyle in their homes, so people here spend a lot of money on interiors. Some even hire an interior designer to do the work at the finest.
Interior designers in Dubai charge more because they are highly skilled in their profession. Such designers must set up big apartments because the interior design will help reduce costs. Also, the cost of the house's interiors, such as furniture, showpieces, and kitchenware, adds up to 10% of the apartment's value.
DEWA fees
DEWA fees are the charges required to be paid by the homeowner to activate utilities such as water and electricity. This process is compulsory for anyone; your apartment will only get water or electricity if you pay DEWA fees.
DEWA fees consist of a deposit deducted after cutting monthly charges; the deposit is $ 200 for apartments and 4000 AED for villas. Usually, the utilities in Dubai will cost you 150 to 200 AED on average. Dubai is a desert, so water must be converted and purified through many processes before reaching you.
ISTA
ISTA is another utility service only found in the UAE, which is to challenge the harsh environment of Dubai. Developing the area, renewable sources and power sources in Dubai requires lots of effort and energy because there are fewer energy choices.
To counter the heat, Dubai uses artificial rain and water sprays to keep the temperature cool during peak hours, and because Dubai is a desert, sand is everywhere. Sometimes, sand is the cause of technical failure, and there is a need for staff to clean vast amounts of sand after a sandstorm.
