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Looking to buy a property in UAE? Here are 6 mistakes to avoid

By Shuchita Kapur

Realty experts point out the pitfalls of a property deal not carefully examined
Buying a house in Dubai can fetch good returns in the long-run but sometimes people end up with not so good deals because of some common yet avoidable mistakes they make.

'Emirates24|7' spoke to experts of real estate brokerage firms to find out the main mistakes people make while buying a house in the city, which ultimately eats into their investment.

No emphasis on structural surveys

Quite often buyers just go by the look of the house without asking for a structural survey of the place. This may save some money initially but experts believe the reality may be ugly. "People who buy existing properties do not carry out structural and condition surveys of the properties they are seeking to buy. This means they could be buying problems down the road," said Charles Neil, Chief Executive Officer at Landmark Properties LLC.

Before going for a property, one should always check the maintenance records of the house. This may warranty that the structure is in a good sate. "Buyers are not checking the maintenance records of the property they are buying. Did the original owner have the property professionally snagged? Has he had annual maintenance contracts in place?" said Neil.

Taking into account the extra charges

Most buyers in Dubai just take the selling price into consideration and fail to check on the other charges which eventually add up as monthly bills to be paid. "[People] only focus on purchase price without checking the details on monthly outlays. One must have good knowledge of service charges and find out how this is included on the property they are viewing. Also, many buyers do not understand which mortgage will work for them in the long-run. It's best to seek professional advice," advises Vineet Kumar, Head of Business Development, Asteco Property Management.

Other charges like Dewa bills also add up to the overall cost. "Buyers don't always check what the annual electricity costs are," said the Landmark expert.

Rightful ownership and registered agent issue

Due diligence is needed to check the credentials of the seller. There have been cases when people were duped as they believed whoever was trying to sell the property was the rightful owner. Moreover, going to the wrong agent can also add to the problems. "[Buyers] don't check that the seller is the true owner authorised to sell the property and if there is an agent involved that he is bona fide and properly registered with RERA," recommends Neil.

Distance from office should not be a priority

Experts also stress that distance from your potential home to the workplace should not be a deciding factor as this is something which is likely to change. "Consideration to buy your house should not be linked to where your current place of work is as this could change in near future. Focus more on a location which meets your budget and offers a quality of life you can afford," mentioned Kumar.

Be careful while buying off-plan

Buying an off-plan property may be an affordable option but many times the buyers gets into a deal without being clear what it is all about. "More due diligence is required when buying stock off plan. Every glossy brochure does not deliver what was promised. If you are an end user and buying off plan property have your intention of buying very clear. [Ask yourself] - is this the house I will live in or am I buying purely for rental investment or capital appreciation?" added Kumar.

Spending too much on refurbishing

When people move to a new house it is quite likely that they will spend a good amount on changing it according to their likes and dislikes. However, this may not add to the value of the property but definitely add to the expectations of the owner if he were to sell it after some years. Spending about Dh100,000 in doing up the kitchen, bathrooms and changing the flooring of the house may not make the property dearer by the same amount. This can lead to asking a higher price while offloading the property but may not get enough buyers. "Spending too much money refurbishing a property [is a mistake]. This will not bring the returns expected," Neil told this website.

© Emirates 24|7 2012