Bullet-Point Property: Dubai No. 98
Let’s talk fees which normally apply to the sale and purchase of real estate in Dubai:
When buying and selling a completed property (resale) in Dubai:-
Transfer fees – these are calculated at 4% of the purchase price plus admin fees that are never more than AED 5,000 and payable to the Dubai Land Department.
NOC fees - these can range from between AED 500 and AED 5,000 and are payable to the developer, usually by the seller.
The Real Estate Agent’s commission is generally 2% of the purchase price and is normally paid by the buyer. If a seller’s agent and a buyer’s agent are involved in the transaction, then these fees can double to 4%, and all these amounts are subject to an added 5% VAT
Mortgage registration fees (if applicable) are calculated at a rate of 0.25% of the registered loan amount and paid to the Dubai Land Department.
Annual service charges are often paid in advance, and buyers should, therefore, account for their pro rata share upfront, some building management companies ask for a refundable deposit which can be 3 to 6 months
When buying off-plan, the following fees apply: -
Property registration fee or Oqood - Buyer will pay the Dubai Land Dept 4% of the purchase price at the time of purchase, plus an admin fee of between AED 1,000 and AED 5,000 to the developer
Mortgage registration fees (if applicable) are calculated at a rate of 0.25% of the registered loan amount and paid to the Dubai Land Department.
Annual service charges based on the size of the property, paid on completion, and 3 to 12 months in advance with a refundable deposit required with some developers.
There are other costs to consider if you need to appoint a conveyancing company, solicitor or power of attorney to deal with the purchase or sale on your behalf, often a good option if you are living overseas or travelling. Your lender may have some added fees and if you use a mortgage broker then again, possibly more fees to consider.
Read more here
This week’s property discussions as follows: -
I have been waiting for this project to be launched for almost a year now, and finally, it opened for pre-sales this week, and I am very pleased to say that it fits perfectly with the investment strategy of so many of my clients. The building is being constructed and designed on the principals of sustainability and is the first in JVC to use solar power to provide cooling and lighting to the common areas and the shared facilities so allowing for extra low fixed service fees for the owners. The interior and exterior design, the quality of the facilities and the fully equipped fitted kitchens plus the look of the building ticks all the boxes for a perfect "Buy to Let" that will attract above average rents and excellent demand from end users and tenants when completed in December 2019. I am estimating net rental yields of between 7.5% and 10% for these apartments based on the initial pricing for studios from AED 438k, one bed from AED 704k and two beds from AED 1.39m. email me for more information
Bloom Heights will also be ready in Q4 2019 and is located on the Central Boulevard in JVC; this will be the first project to handover in Dubai from this well-funded master developer from Abu Dhabi. They have just announced some new flexible payment plans for their studios that start from 396 sq. ft.and AED 398k, one bed from 732 sq. ft. and AED 670k, two beds from 1,071 sq. ft. and AED 950k and finally their three beds of 1,459 sq. Ft. and AED 1.3m. See the brochure here
Bella Rose will offer studios, one- and two-bedroom apartments designed to a minimalist and modern specification, featuring grey, white and black high-quality finishes throughout. It’s located in Dubai Science Park which is near two major malls and highways, with easy access to neighbourhood facilities such as schools, hotels, My City Centre Al Barsha shopping centre, Miracle Garden and more. Studios from AED 478k, one bed from AED 743k and two beds from AED 1.17m all on some very special payment plan options which include 6 x 5% every four months during the build, 20% on handover in Q4 2020 followed by 50 x 1% monthly post-handover. Send me an email for more information
Damac has just announced their latest building named Fiora at Golf Verde located in Akoya Oxygen - The one beds starting at a very low AED 399k on a 5-year payment plan will guarantee speedy sales for this developer and their multi-million dollar sales and marketing machine. One beds are just 422 sq. ft. and the two beds are 698 sq. ft. - Please check with me before you commit to buying any of these apartments
The Cityscape Property Exhibition in Dubai starts on the 2nd October so expect a deluge of emails and calls from agents and developers announcing new projects and incentives for October. Beware of developers bearing gifts, and as always, I am here if you have any questions or need assistance