The Extra Fees Linked to Buying a House in Dubai

In the past years, Dubai provided the option of renting property for expats only. However, things have changed, and anyone can own a property in Dubai. However, you need to know that achieving the dream of owning your own place in Dubai is quite a process. Apart from the monthly payments you expect to pay when you buy a house, there are extra fees you will incur. It is crucial to know about these fees and get prepared. This knowledge will help you to make conversant decisions. Here is an outline of the extra charges you will incur when buying a house in Dubai.

• Mortgage Fees

If you choose Dubai mortgage loans, you will need to pay the bank an arrangement fee and the property valuation fee. The good thing is that the bank might allow you to pay these costs in the mortgage to lessen the initial burden. Additionally, if you are buying property where the seller has a mortgage on the property, you will first need to [ay the mortgage for the transfer to be processed. You get a certificate that will show that the seller has already paid the charges included.

• Government Fees

Dubai Land Department requires all purchases to be registered within 60 days within the transaction period. If this period elapses, the purchase is considered invalid. Theoretically, DL requires both the seller and buyer to at 4% charges, even though the buyer ends up paying the 4%. You will also need to pay the property registration fee and a 0.25% fee to the bank for DLD registration. However, these fees do not apply to cash transactions.

• Agency Fees

When it comes to paying agency fees, you will need to pay real agent agency fees and conveyance fees. You don’t necessarily need to pay the upfront cost. The agent will raise the cost of buying by 2% including, the VAT. It is essential to work with an experienced agent to make this process smooth. The professional will also give you advice through the property market in Dubai. You also need to pay conveyance fees. This is a fee paid for the services and support you get from the agent.

• Service Fees

These fees are paid once you have settled the transaction and are the sole owner of the property. You will need to pay maintenance charges to the DLD. However, the service fees will depend on the community and the size of your property in square meters. These fees cater to the upkeep of common buildings and communities like security, community swimming pools, landscaping, and elevators.

• Insurance Fees

When buying a home in Dubai, you need to have a home and life insurance. Home insurance will protect you and your property against loss and damages from accidents, fires, natural calamities, and theft. You will need life insurance if you need a mortgage. You can work with the bank’s life insurance or purchase an external insurance policy.

Conclusion

If you are ready to buy a house, there are the extra costs you will incur. So, make sure apart from the downpayment, you are prepared with these expenses. Understand the types of fees you need to pay and prepare early enough.