As a rule, experienced investors in the sphere of Dubai real estate know all important issues and hidden costs in the process of a deal. Those who buy an apartment or a villa for the first time are not aware of the possible extra costs and appear confused. Looking for spacious apartments in Business Bay for expats, it is advisable to monitor the state of the real estate market and identify the key features. In this article, we will discuss a number of questions to ask the seller in order to obtain the detailed picture of the housing unit.
There are several types of expenses that clients should plan for in addition to the price of the property itself, but these are hidden costs as they are only discussed at the property purchase stage.
Prices on real estate in Business Bay
The in-depth information on each housing unit in the neighbourhood proves experience, knowledge, and professionalism of a real estate agent. If the specialists are familiar with the area, they will give an accurate answer to any question. Brokers who are not familiar with an area will not be able to give you an accurate answer, and their ignorance will lead to ineffective negotiations and possibly overpayment by the buyer. That’s why it’s important to work with a neighbourhood specialist for the best advice and guidance.
The reason for sale
Sellers may have various reasons for finding another landlord for their property. Moreover, none of the versions may seem truthful. Asking the question about the reason for sale, you will get an opportunity to identify some possible drawbacks or even problems with a home. Depending on the situation, this may provide an opportunity for negotiation that can be used to the benefit of the buyers.
The period when the property has been on sale
The information about the period of time the property has been on sale helps to identify that something is wrong. It is possible that the apartment is extremely high priced or their documents are not compiled in accordance with the procedure.
Considering the level of demand on the real estate market, a long period of sales seems strange and suspicious. Such a housing unit requires more detailed investigation and thoughtful decisions.
Number of facilities and their costs
Paying money for the real estate purchase is not the complete investment. Every housing unit needs maintenance and repairs. The costs of maintenance differ depending on location, footage, number of infrastructure and many other criteria. It is advisable to become aware of the final sum before signing the contract. Make sure that your budget will be enough to pay additional annual costs.
Upgrading and remodelling
This is a vital question, as some developers physically come to the property and conduct an inspection as part of the No Objection Certificate (NOC) process. If there are any modifications or, more likely, remodelling of the property, the developer will require the seller to provide the appropriate NOC to allow them to provide the NOC to transfer ownership of the property. It is important for the buyer to ask the agent if the seller has a NOC, otherwise the seller may have to remove the remodelling or pay the cost of the NOC after the transaction is agreed upon, which could ultimately result in a failed transaction or substantial cost to the seller.
Hidden costs of real estate in Business Bay
There are a few expenses that clients must pay in addition to the purchase price, but they are not that hidden because they are negotiated during the real estate purchase process. In this case we speak about the following payments:
- Transaction fees, four percent of the purchase price;
- Land Department fee for the transaction of AED 4,200 and an administrative fee of AED 580.
- Professional/agent fee of two percent plus VAT and transportation costs.
- Other additional fees depending on whether you buy on credit or cash, which will be stipulated in the contract.
Help in buying real estate in Business Bay
The process of investing in real estate abroad may appear complicated and unknown. For this reason, it is advisable to address the trusted real estate agency AX CAPITAL and get professional help as soon as possible.