Top 6 Real Estate Mistakes To Avoid When Making an Investment in Dubai
There’s barely another state as lucrative as Dubai when it comes to the real estate sector. And so, if you’re able to invest here, it’s no less than a remarkable achievement. When even the thought of moving into your dream home looks overwhelmingly impressive, it’s one of the most daunting experiences you can have being a beginner.
Therefore, you’re required to be entirely attentive to the investment procedure. It’s because even a tinier mistake can lead to significant financial crises.
Not only consulting with a professional real estate attorney is sufficient, but you’ve to broaden your horizon of intellect as well. While connecting to an online property portal in Dubai comes in handy, you must also determine your shortcomings.
Let’s determine what mistakes investors make the most when investing in Dubai and why they must avoid them.
Mistake # 1- Overlooking the Cost
While purchasing a property requires maintenance and repairs, we often neglect it in our excitement of becoming property owners. Aside from the repair costs, there are several other costs that you must consider, including transfer fees, agency fees, DLD fees, and EJARI registration fees. Also, how can we forget the moving-in cost, service charges and utility bills? Remember that becoming an owner from a tenant isn’t rewarding, but you’ve to think like one.
Mistake # 2- Investing with strategizing
Adapting to an owner’s mindset before involving yourself in real estate affairs is significant. We often overlook the significance of strategies and invest without planning. That’s one of the biggest mishaps one can make. Without knowing our next move, how can we nail the current one?
In addition, you’ve to stay focused on your perquisites rather than tailing around the bush and doing whatever the real estate agents dictate. Furthermore, always be prepared for a change in market trends occasionally.
Mistake # 3- Being Clueless or uninformed
To make the most of your funds, you must ensure that you’re investing in the most lucrative real estate period. Complete your research regarding the neighbourhood you’ve kept your eyes on, and don’t neglect it when you find a fair deal. Since Dubai is always jam-packed with investors eyeing the properties, it’s crucial to move quickly before you lose the slot. However, making realistic negotiations is the key, or you know the consequences.
Mistake # 4- Staying impatient all the time
Even buyers with a lower income level have succeeded in marking their places in Dubai and making substantial money. Regardless of the real estate investment type you’ve chosen, you’ve to be patient and wait for the rental yield to outgrow. In addition, you must acknowledge all the potential repairs and maintenance you might have to pay for before putting up the property for rent. Remember, there’s no shortcut, particularly with the ownership.
Mistake # 5- Limiting your Options
Dubai showcases different properties, including residential clusters, villas, commercial outlets and off-plan properties. Recently, off-plan developments have been outpacing all other types. Thinking beyond the box is the key, especially with property investment. Look out for the most beneficial aspects and go for them. Seize the lucrative opportunity when the property prices hit rock bottom and become a proud owner by investing wisely.
Mistake # 6- Not hiring a Real estate agent:
For a few pennies, we often avoid hiring a real estate agent. However, there’s no way you can pull off the process without legal assistance. Since Dubai is quite strict on its legalities, even a tiny mishap can cause you thousands of dollars.
Again, hiring a freelance real estate agent isn’t acceptable in Dubai, and thus, might require you to pay a penalty. That said, always review the agent’s certification before signing him up. Lastly, maintain a written record of the communication between you two.
Mistake # 7- Rushing into Things:
It’s human nature to get impulsive when they see a good deal. They want to grab it as early as possible, as the fear that someone else’s going to get it hovers above us. This, however, is a mistake you should avoid.
As a real estate investor, always remember the rule of thumb – never rush into things. A haste decision can impact your profitability up to a great extent.
You may end up paying more than you should have or waiting for a bit may have gotten you a better deal in an even better area. So, the crux here is to take your time and make an informed decision. However, do not take months to finalize a deal. You will definitely end up losing it by taking this much time.
Not every other day, you’re looking for investment prospects in Dubai. Therefore, you must decide after thorough deliberation and thoughtfulness. If you intend to buy properties for sale in Abu Dhabi, Dubai or another Emirati city, ensure not to kill your valuable time by repeating the mistakes above. In addition, do your research regarding the prospects without relying on anyone else.