Take into account Unforeseen ExpensesOne mistake that some real estate buyers make is not considering all the expenses before making a purchase.
It is important to include additional expenses in the purchase budget. The standard list of additional expenses includes:
- Dubai Land Department transfer fee (DLD) - 4% of the property value.
- Fee for issuing the Title Deed - 500 AED ($136).
- Fee for insurance during the buying/selling process - 4,200 AED ($1,100).
- Agent's commission - 2% of the property value for secondary properties.
- Fee for obtaining a No Objection Certificate (NOC) - 5,000 AED ($1,300).
The list can vary depending on the property and the circumstances of the purchase (such as using a mortgage or not), among other factors.
Additionally, it is important to inquire about the cost of utility services. For example, the electricity bill could be unexpectedly high.
Another expense to consider is the maintenance of the property. The maintenance fee for villas and townhouses is usually small, but for apartments, it can be quite high. Some older complexes may require significant technical maintenance for elevators, air conditioning systems, etc. Therefore, it is necessary to carefully examine what the maintenance fee includes in a specific complex and whether it covers future costs for major repairs.