Buying your first home is both exciting and daunting. It’s likely one of the biggest financial transactions you will ever make. Despite this, many home buyers are underprepared and misinformed.
At Key One Realty Group, we highly encourage buyers to do their research and not just rely on real estate websites and trends. Obtaining the perfect home that will suit your needs and lifestyle is important to us so here is a list of top mistakes first-time home-buyers fall trap to – that you should definitely avoid.
Not researching
As we mentioned above, most home buyers only rely on properties listed on real estate websites and purchase without knowing the local market conditions, the neighborhood, environment and community, and history of the property. Knowing both major and minor details will help you in finding the right home.
Whether you choose to invest or not, researching will let you know the actual worth of the property you plan to buy and determine the potential yield you can get.
You can start by using real estate websites, however, do not limit yourself to the listings. Some websites provide information on the number of properties in the area, rising and falling prices, the average price of houses, an overview of the area, as well as the cost of living and lifestyle.
Having said that, do not be influenced by “the market” more than by your own needs. The cycle may be in favor of the buyers right now but waiting for the right time or prices to go even further down is a gamble with your long-term plans.
If you have your finance organized and your budget set, think about your current and future needs and with lots of research to back you up, find the perfect home without the influence of short-term market conditions.
Not getting everything in writing
Not getting everything in writing is one of the most common mistakes first-time home-buyers make in Dubai. Unfortunately, there are agents in Dubai that verbally promise you extra services to entice you into buying a property. However, after your purchase, you find out that the promised extras were not offered by the seller.
The same goes for property developers who offer a flexible payment plan but later require you to buy a parking space to get the apartment transferred to your name or worse, run with your money before completing the project.
To avoid such nuisance, it is best to get everything in writing – things that will and won’t be included in the sale of the property.
Not checking the loan options
Another one of the mistakes first-time home-buyers make is not checking loan options. Several properties in Dubai are bought using mortgage loans. One of the first mistakes people make is rushing to the bank that their relatives and friends recommended without doing the necessary research and calculations.
Borrowing from the bank has its pros and cons so you must calculate and plan well to avoid any financial hazards. Each bank has various mortgage options, so sourcing from several banks will put you with the best package.
Additionally, getting pre-qualified and pre-approved before going house hunting will put you in the best negotiating position.
Not understanding Freehold and Leasehold properties
Foreign nationals are allowed to buy properties on a leasehold or freehold basis but only in designated areas for foreign property ownership. Some of the leasehold areas in Dubai are in Dubai Silicon Oasis and Green Community while some freehold areas are in Downton, JVC, Business Bay, and MBR. Learn more about Freehold and Leasehold properties in our article buying property in Dubai 2021.
Wrong house and location
You can find numerous neighborhood communities in Dubai equipped with world-class amenities. To choose the best home, make sure to find a house that is close to your workplace, health care facilities, good schools, iconic malls and shopping centers, and supermarkets.
You may have found your dream house but not compromising on location and essential facilities for comfortable living is important. That impressive villa with grand stairs may look lavish, but it may not be the best option for a family with toddlers.
We recommend taking your time to ponder and think about how you would occupy the space – whether it would work for you or not.
The Key One team is ready to offer our support and advice in your journey of buying your first home. Get in touch with us today and never be at risk of falling for first-time home-buyer traps.