Hey there! Dara here, and today we’re diving into the world of Dubai real estate. If you’re considering buying property in this bustling city, it’s essential to be aware of the hidden fees that can catch you off guard. In this blog, we’ll break down the top hidden costs you need to know before making a purchase.
So, let’s get started!
- Transfer Fees
When buying property in Dubai, you’ll need to pay transfer fees to the Dubai Land Department. These fees are typically 4% of the property value, plus an additional AED 580 for registration. Make sure you factor these costs into your budget when calculating your overall investment.
- Agency Fees
Real estate agencies in Dubai charge fees for their services, which usually amount to 2% of the property value, plus VAT. This fee covers the agent’s commission and helps to compensate them for their time and effort in finding and negotiating the property on your behalf. Remember to include agency fees in your financial planning.
- Conveyancing Fees
Conveyancing fees cover the legal aspects of transferring property ownership, such as preparing and reviewing contracts, conducting title searches, and liaising with the relevant parties. These fees can vary but typically range from AED 2,000 to AED 5,000, plus VAT. It’s essential to consider these costs when estimating your total investment in Dubai real estate.
- Mortgage Registration Fees
If you’re planning to finance your property purchase with a mortgage, you’ll need to register the mortgage with the Dubai Land Department. This registration process requires a fee of 0.25% of the loan amount, plus an additional AED 290. Keep these costs in mind if you’re looking to secure a mortgage for your property.
- Trustee Fees
For property transfers in Dubai, trustee offices charge fees based on the property value. These fees can range from AED 2,000 to AED 4,000 and are necessary to facilitate the property transfer process. Remember to account for these fees when calculating your overall investment.
And that’s a wrap! By being aware of these hidden costs, you’ll be better prepared to budget for your Dubai property investment and avoid any unwelcome financial surprises. Happy property hunting!
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