Buying a property is nothing like buying groceries or your favorite dress online. If you are able to browse some popular and attractive listings online while sitting on your couch, it does not mean that a few clicks will help you get the new apartment to your name. A significant majority of the public is mistaken that the biggest hassle in the process is apartment hinting and everything after that is smooth like butter.
Finding a perfect property does require a lot of effort, for which the professional real estate agents are always there to help and finalize everything. The real hassle starts after that because buying an apartment requires payments to numerous stakeholders and the completion of various steps in the process.
Give a detailed read to this article to explore and learn about the extra costs of apartment buying in the UAE and ensure you are fully prepared before you head for the process.
Top 7 Expenses of Buying Apartments in UAE
If you think you have gathered enough savings and are fully prepared to buy your dream apartment, you need to go through the list of additional expenses you will have to take care of before finally calling the new apartment your own.
Here are some of the major additional financial expenses of buying apartments in the United Arab Emirates that you must be aware of.
Agency Fees
Agency fee is the first and foremost additional financial expense that you must be prepared to pay while buying an apartment. The agencies are liable for guiding and counseling the buyers, helping them explore apartments for sale in Jumeirah village circle, and completing their purchase smoothly. The Agency fee rate is often fixed at 2% in return for property consulting and support throughout the purchase process.
Government Fees
The government fee is the most important additional expense you need to keep in mind and pay on time while buying a property in the UAE. You need to register the purchase with the land department within fifteen to sixty days to ensure the completion of the process. If you ignore this, the property will not be registered to your name and will stay with the previous owner.
Mortgage Fee
In case you do not have enough savings or cashback up to buy a home, you can opt for a mortgage or loan to fulfill your dream of owning an apartment. However, in such a scenario, you will have to pay a mortgage fee to the bank and follow all the proceedings for the process. Your application status will also be checked and inquired thoroughly before allowing you a mortgage.
Initial Deposit
In most cases of property or apartment buying, the buyers do not hand over the whole payment in cash to the sellers as soon as the deal is finalized. However, the process requires payments in installments, which the buyer and seller can fix according to their ease. Still, the buyers have to pay an additional expense of the initial deposit, which is usually ten percent at the time of deal finalization, as a guarantee. So, you must have that in hand while signing your deal.
Property Transfer Costs
Another significant additional financial expense that you must be aware of while buying an apartment is the property transfer costs. The initial deposit is paid to the sellers so they can initiate the process of transferring the property in your name. This is a legal process for which you will have to pay the authorities. So, make sure you have enough amount to get your newly bought property transferred to your name.
Renovation Cost
The renovation cost is one of the most critical additional expenses you need to keep in mind while buying an apartment in the United Arab Emirates. You might not have to pay this amount to a specific party but the service providers to get renovations according to your demand and choice. You can even save up this cost by buying apartments in newly established societies, where apartment units are in perfect shape.
Service Fee
The last and notable extra financial expense of purchasing a property or apartment in the UAE is the service fee. The service fee is the amount charged for the upkeep and maintenance of the area, which can include the elevators, pools, parks, and other such amenities. You can opt for apartments for sale in Jumeirah village circle to ensure a lower service fee and better maintenance of the surroundings that will enhance the quality of your living experience.
Too worried to handle these expenses on your own?
There is no doubt that buying a property comes with its own set of costs. However, professional real estate builders can help you walk through the process smoothly while guiding you about expense management too. So, contact the experts now and ensure to buy your dream apartment without being concerned about additional financial expenses.
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