Considering buying an apartment in Dubai? There has never been a better time to buy an apartment in Dubai than now. Let’s face it; Dubai has always been a buyer’s market. With young adults, who are part of the millennial generation, yearning to make a positive life change in the city of unlimited prospects, excited by its ability to open doors to new careers and better lifestyles.
Apartments in Dubai Make Good Investments in 2020
There are many positives to buying an apartment that make it a better investment option than other types of residential properties – it’s simple to manage and finance, it yields a higher return on investment in the form of a recurring monthly income, and it is easy to maintain and resell.
When investing in an apartment in Dubai, it pays to ask the right questions so that you don’t get stuck with a property that ends up costing more to furnish or renovate than your originally calculated.
Buying an apartment is typically best for more experienced investors. However, having a clearly defined selection criteria will help you stay focused and avoid losses, keeping you on track to buy a great investment property:
Pick a good location or neighbourhood
Location of the apartment building plays an important role in determining the price of the apartment. When it comes to buying an apartment for rental yield, a location nearer to the city center or, at least, within walking distance to public transportation and other lifestyle amenities will surely rank higher on your priority list. Some of the most popular locations in Dubai include, Jumeriah Village Circle (JVC), Al Barsha, Downtown Dubai, Business Bay, Dubai Marina and Al Sufouh.
Choose the type of apartment to buy
In terms of style and form, an apartment can either be a low-rise, mid-rise, high-rise, within a skyscraper, or a mixed-use property. Be sure to choose an apartment from a real estate developer, such as Bloom Properties, that has been approved by the Dubai government.
Bloom Properties offers a range of apartments in Dubai, like Bloom Towers in JVC which has spacious studios to one-bedroom apartments in the mid-market segment with a strong sense of community and great value for money with a stage payment programme schedule of 10% down payment, 15% during construction and 75% five years post-handover. While Bloom Heights, also in JVC, offers studios to three-bedroom apartments for sale with a lucrative payment plan of 10% down payment, 15% during construction and 75% three years post-handover.
Evaluate the financial performance of the apartment building
The financial status of the building is a key deciding factor to consider when investing in an apartment. As an investor you should review the annual financial statement of the building, including maintenance records, capital improvements, and profit and loss statements for the past year or two.
Finance the purchase of the apartment
Financing options for property investors are available from banks and companies authorized by the Central Bank of the United Arab Emirates. Most banks in Dubai offer home loans at a rate ranging between three to four percent with minimum down payment of 25% of the property value and mortgages of up to 75% of the property value, provided that the investor is eligible for it. The eligibility criteria for a mortgage is based upon a number of factors such as the investor’s salary qualification, minimum length of service, the company which the investor works for, and many more.
Legal Documents Required for Mortgage Approval:
Regardless of your nationality or whether you are currently residing in Dubai or abroad, you can invest in Dubai’s freehold property market in any of the 23 designated areas within the city. If you are Dubai resident, you will need to provide the below list of documents for a mortgage approval:
- Passport copy with visa page of the investor
- Copy of Emirates ID
- Proof of current address such as Ejari and Dewa bill
- Salary certificates or evidence of regular income
- Bank account statements for three to six months, which reflect the corresponding salary credit
- MOU for the sale of the property
- Title deed of the property to be purchased
- Seller’s passport copy
- No-objection certificate (NOC) from the developer
Discuss your potential pursuit of a Dubai apartment with the Property Managers at Bloom Properties who will help you make the right decisions and maximize the value of your property. For help navigating the hottest 2020 real estate properties in Dubai contact us today!