A Guide to Buying a House in the UAE

The United Arab Emirates, or UAE for short, is one of the fastest growing countries on the planet. This isn’t all just population but also in structural size. The amount of money the small country generates due to its wealthy oil wells (not to mention it is not an Arab state currently in turmoil, which makes it more desirable to do business with). Because of this the country welcomes investors with open arms into its realm, so whether you’re looking to open your own business or if you just want a vacation condo here, it is possible to purchase such a residence. There is no limit to the number of foreign investors and residents the country takes in, as there is an infinite number of condos (especially with how the constructions continually push the height barrier). This makes obtaining a residence a bit easier, but it is still important to know about UAE mortgages from HSBC and what all goes on into buying a house inside the country.

The first step towards buying a house or property in the UAE is to ask about structural surveys. Although a good deal of money is spent on property inside the country, many of the homes go up rather quickly which means not as much time as necessary was put into surveying the landscape. This can lead to shifts in the land, causing the foundation to crack and even separate. Due to this you need to request for this sort of information before proceeding with any home you might be interested in. It does cost more money up front but it also prevents you from purchasing an inferior home.

Before you proceed with the UAE mortgages from HSBC or any other bank, you need to take into consideration the extra charges which go into buying a home. This does not just include the price to purchase the property but also additional service charges. The service charge is going to add to the monthly fee of the property, not to mention what the Dewa bills are.

There are several other fees and taxes associated to buying property in UAE and larger cities such as Dubai. You need to know if your UAE mortgages are going to cover this or if these are out of pocket expenses. To know this you must consult the financial institution providing you with the loan. For starters, if you are buying an off plan or into a new construction project, you’ll have to pay what is known as the land registration fees, which is usually around two per cent of the annual charges, although this does depend on the exact project you invest in. You’ll have to pay transfer fees if you buy a current resident, although this depends on if the facility is completely finished or currently under construction.

Although you don’t need a lawyer in order to obtain UAE mortgages or perform the necessary services you do need a real estate agent. In order to pay the agent you must pay anywhere from two to five per cent of the actual cost of the home you buy in order to pay off the real estate agent.

Once you have paid off all of the additional fees (some of which you can add to the monthly mortgage of the home) you’re ready to make the offer and bit on the home. This works to a similar manor as what it does in the United States, as you bid on the property in order to win against other bidders. Although there is a large amount of property listings you do need to act quickly.