Pros and cons of buying a property directly from owner in Dubai
The Dubai real estate market is one of the most diverse in the world. To purchase suitable homes or high-ROI-yielding properties, buyers often rely on two options: professional real estate agencies or property owners/ developers. If you want to buy a property directly from the owner in Dubai, our review of the pros and cons can help make your decision easier.
THE PROS OF BUYING A PROPERTY DIRECTLY FROM OWNER IN DUBAI
Buying a property directly from an owner in Dubai has pros and cons. Many factors need to be considered by those who buy real estate directly from developers or individual sellers rather than real estate agencies. Let’s look at the advantages first.
SAVE MONEY
For many people, savings are a good enough reason to buy a property directly from owner in Dubai. Remember that the cost of buying a property in Dubai increases if you rely on a broker or real estate agency to find the right property.
Let’s try and put the financials in perspective here. If you buy property directly from an owner or developer, you must pay mandatory DLD fees, which is 4% of the property value.
The overall charges will also include the fee for issuing the Title Deed and a DLD admin fee. For those financing their properties via a mortgage, the Mortgage Registration fees also apply, which is 0.25% of the total value of the mortgage and an additional admin fee.
However, the same process will cost extra if you rely on a real estate agency or broker to find a suitable property. Brokers can charge a 2% agency fee besides the abovementioned fees.
Some agencies also add a 5% VAT charge on the fee, which can increase the cost. While these fees are negotiable, any added costs may not suit those looking for affordable investments in the city.
NO MIDDLEMAN
Buying property directly from owners in Dubai might appeal to those who prefer a more hands-on approach to property investment. Removing a broker or agency from the buying process eliminates the middleman. You might find a suitable property faster by breaking down the barriers between the seller and yourself. For example, popular developers in Dubai (Emaar Properties, DAMAC Properties etc.) allow buyers to book their desired properties online.
THE CONS OF BUYING A PROPERTY DIRECTLY FROM OWNER IN DUBAI
Now let’s explore the potential disadvantages of buying a property directly from an owner in Dubai.
LESSER KNOWLEDGE ABOUT THE PROPERTY
Looking for a lavish villa for sale in Dubai? To buy a property, you must be confident in assessing a home with the same detailed approach as a seasoned real estate agent. If so, purchasing Dubai properties directly from owner might be the right option for you.
However, if you’re not fully versed in the intricacies of property purchasing, then a real estate agent’s expertise and knowledge can be invaluable. Furthermore, they will be able to ensure a seamless property viewing process – a benefit not to be underestimated.
LACK OF EXPERTISE
Unless you or the landlord are licenced real estate agents, both of you will likely lack experience navigating the fine details involved in property transactions. For instance, the contract and related paperwork may be more complicated than anticipated. This can lead to a significant transaction slowdown as you and the current homeowner try to sail smoothly. These issues can be even more pronounced when purchasing a property from an individual seller instead of a developer.
NEGOTIATIONS CAN BE HARD
Successful negotiation is an art, especially regarding something as important as a property sale. Factors like emotional attachment can play a significant role and often discourage sellers from accepting your offer. In such cases, it might be best to rely on a real estate agent to secure an appropriately priced property for you. Experienced real estate agents are seasoned negotiators. They’ll usually ensure you get the best deal based on factors influencing a property’s value.
WHERE CAN YOU BUY DUBAI PROPERTIES DIRECTLY FROM OWNER?
In several areas, you can find houses and apartments for sale in Dubai, directly from developers or individual sellers. Popular neighbourhoods like Al Qusais, Jumeirah Village Triangle (JVT), and Al Nahda are just a few examples.
Apart from the abovementioned areas, buyers and investors may consider reputed developers like Emaar, Dubai Properties, Nakheel, Meraas and Azizi Developments for ‘direct to own properties in the city.
FREQUENTLY ASKED QUESTIONS
WHICH IS THE BEST AREA TO LIVE IN DUBAI?
Dubai Marina often is rated as the best area to live in Dubai. Our guide lists where to rent or buy flats in this self-sustained district.
WHERE CAN I RENT AFFORDABLE APARTMENTS IN DUBAI?
International City, Dubai South, Dubai Production City, Al Warsan and Liwan are popular areas to rent affordable flats in Dubai.
I WANT TO BUY A PROPERTY IN DUBAI. SHOULD I CONSIDER CASH OR A MORTGAGE?
There are multiple factors to consider when deciding whether to go for a mortgage or cash when buying property in Dubai. For example, mortgages are expensive. On the other hand, they are also flexible and easier to manage. Our guide will help you weigh all the pros and cons of buying a property with cash or a mortgage in Dubai.
So, there you have it! The pros and cons of buying a property directly from owner in Dubai. It’s worth noting that Dubai’s robust real estate market also allows foreign investments. Non-resident investors can purchase property in Dubai if they meet the eligibility requirements.
Interested in purchasing a property in Dubai? Here’s a guide to the legal steps of buying properties in Dubai, which might be useful for you. Check out the key factors to consider if you’re a young couple looking for investment advice in Dubai property.
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