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What to know about home inspection as a home buyer

As a homebuyer one of the most critical steps of the purchasing process is obtaining a home inspection. At Capital Zone Mortgage Broker, we’re here to help you every step of the way on your home-buying journey. Here, we’ve compiled the key elements of a home inspection to help you through this step of the home buying process. While each of these steps is important, they should not be overwhelming. The key steps include: Step 1. Select a home inspector Step 2. Schedule and attend your home inspection Step 3. Review your inspection report Step 4. Determine your next steps after the inspection report With a team of professionals by your side, including your realtor and inspector, you’ll be able to make your home purchase knowing you’re aware of most large faults and with a plan to rectify them. What is a Home Inspection? A home inspection protects you, the buyer, from future trouble with your new home. Ideally, an inspector will discover anything wrong with the home during an inspection. This allows you and the seller to determine how you will handle repairs before you finalize the purchase. At the very least, it gives you a better picture of the home you are purchasing and whether it is in working order or will need repairs down the road. So, even if you do wind up having to pay for these pre-determined repairs, knowledge is power and it’s best to know the full picture. No one likes unwelcome surprises when purchasing a home. Having your home inspected in a timely fashion helps avoid these surprises, serving as a key advantage of a home inspection. Let’s dive into the steps you’ll take during the home inspection process. Step 1. Select A Home Inspector There are many places you can look for home inspector recommendations, including: But don’t just take someone else’s word as an end-all-be-all in your hiring process. Talk to the inspector yourself to learn more about his or her process, view sample home inspection reports, and determine for yourself if you think they will provide a thorough inspection. If you’re curious about what a home inspection should cost, it’s important to know it will vary depending on your location. Step 2: Schedule and Attend Your Home Inspection Your home inspection will take place shortly after the seller has accepted your offer. You will want to have the home inspected as soon as possible, usually within a 10-day window. Typically, you will include a contingency in your offer regarding the results and outcomes of the inspection. So, don’t worry about making an offer before having the home inspected. As the homebuyer, you are responsible for setting up the home inspection. While only the inspector needs to be present, we recommend that you accompany the inspector and walk through the home with him or her. This gives you a chance to ask questions along the way. Your real estate agent may also attend the home inspection. Step 3: Review Your Inspection Report After completing the inspection, your home inspector will deliver a full home inspection report for your review. This report will outline both minor issues and larger issues you may want to address before closing on your home. You and your real estate agent will want to look it over together to decide what to do next. Step 4: Determine Your Next Steps After the Inspection Report With the report in hand, you have a few choices. You can purchase the home as-is, ask for repairs to be made at the seller’s expense or decide not to purchase the home. If you decide to request repairs, you can negotiate with the seller on which party will pay for the repair. When deciding what repairs to request, think about the cost of the repairs and the amount of work that will go into them. For example, if there are electrical or plumbing issues, we recommend asking the seller to pay. These fixes typically require an outside expert and impact the safety and usability of the home. Once you agree on the repairs, keep an eye on things to ensure the work is completed to your satisfaction before closing. If the findings of the inspection report are especially negative, you may decide you don’t want to purchase the home at all. As mentioned before, purchase contracts typically allow you an “out” if you decide the home isn’t right for you after the inspection. The key is how you word your purchase contract, so be sure to discuss this with your realtor before putting in an offer. No matter what results your home inspection turns up, the inspection is important and hopefully not too stressful. With your home inspection report in hand, you should hopefully have peace of mind because you know the key details about the home you are buying. Related articles:1. What type of off-plan property is best for investment in Dubai?2. Tips For Getting A Luxury Property Mortgage In Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Best Off-Plan Projects In Dubai 2023

Four high-end projects by UAE developers were introduced, each of which promised to steal the show this year. The Ritz-Carlton Residences on the grounds of the historic Dubai Creekside community, the ultra-luxurious Keturah Reserve in Meydan, the Damac Harbour Lights tower in the waterfront Maritime City, and Marina Living in Dubai Marina, one of the city’s most well-known neighborhoods, are four new residential complexes in Dubai with a unique selection of services to impress even sophisticated investors and a great price/quality ratio. Not only are the new residential developments in such prime locations some of the nicest structures in Dubai, but they also present excellent financial prospects. The demand for luxury houses in this emirate is at an all-time high right now. THE RITZ-CARLTON RESIDENCES This upscale complex is offered by MAG of Life and the Marriott International, a huge hotel brand. Located in Dubai Creekside, a perfect district for living on the bank of Dubai Creek and near the Ras Al Khor Wildlife Sanctuary, it includes serviced one- to three-bedroom apartments, penthouses, and a limited collection of opulent mansions in the following three styles: Numerous exclusive amenities will be available to residents of this premium complex: Residents will also be able to use five-star hotel services. The staff of this high-end complex will take care of all tiresome household chores, e.g., book airplane tickets or a private jet, reserve a table at the restaurant, sign you up for spa treatments or a game of golf, and arrange move-in. Residents can get a personal coach, a babysitter, a secretary, a chef, as well as cleaning, repair, pet care, shopping, and event organization services by the A La Carte program. Residences with a floor area from 124 to 4,358 m2 are available: Buyers of properties in the Ritz-Carlton Residences are entitled to a 60/40 instalment plan. The down payment is 10%, another 50% is paid during construction, and the remaining 40%, upon handover. The buildings are due for completion in Q1 2026. KETURAH RESERVE This unique ultra-luxury eco-project will be the first Near East complex built in compliance with the Bio Living concept that brings residential and natural space together in an integral whole thanks to a unique design, virtuoso light management, textures, and advanced water and air treatment technologies. This residential project with opulent villas and apartments will be built in Meydan, a neighbourhood within the larger district of Mohammed Bin Rashid City. This is a high-end property in Dubai that offers more than just a luxurious place for living. Keturah Reserve is about caring for your health and the environment, merging sports, leisure, entertainment, and even business spaces into unique natural landscapes. The amenities available to residents include the following: The residences are decorated with natural materials and textures, such as stone, wood, bronze, and linen. The modern VRF air conditioning system ensures energy saving and smart cooling of the living quarters. The homes are also equipped with an air filtration system that removes pollen, smoke, and foreign smells, including kitchen odours. The lighting is designed to maintain residents’ circadian cycles. The panoramic windows allow plenty of daylight into the homes at daytime, while the buildings’ smart architecture prevents overheating. Keturah Reserve includes residences with a floor area of 106 to 826 m2: These are the starting prices from the developer, and they will increase as the project approaches completion. A 60/40 instalment plan is available to the buyers who can make a 15% down payment, pay another 35% during the construction, and the remaining 40%, upon handover. The construction completion is scheduled for Q2 2025. DAMAC HARBOUR LIGHTS This high-rise 52-storey tower in Dubai with panoramic-view apartments from the famous developer Damac Properties was designed by the jewellery brand de Grisogono. The waterfront complex will be located in the high-potential Dubai Maritime City in the heart of the emirate’s maritime industry, near a yacht marina, luxurious skyscrapers with offices, and prestigious tourist neighbourhoods. The project promises to become one of the most popular new buildings in Dubai for foreigners to relocate to. Damac Harbour Lights offers one- to three-bedroom apartments with premium finishing and stunning views from the windows as all the residences face the water. Another feature is the unique floating pool on the waters of the Persian Gulf. A one-bedroom apartment in this new residential project costs from AED 1.32 million to AED 1.64 million (from USD 359,500 to USD 446,500), a two-bedroom home is worth from AED 2.2 million to AED 2.5 million (from USD 599,000 to USD 680,500), and a three-bedroom residence, from AED 2.34 million to AED 3.28 (from USD 637,000 to USD 893,000). The floor areas range from 74 to 158 m2. An 80/20 instalment plan is available. The construction is due for completion in Q2 2027. MARINA LIVING This promising new building in Dubai is a 19-storey tower with two podiums developed by Continental Investment. The complex will be located in the famous resort community of Dubai Marina with extensive facilities for seaside leisure and water sports. Residents of Marina Living will have access to various amenities: Residents of this prestigious skyscraper in Dubai will have access to the extensive facilities of Dubai Marina with its Marina Walk, beaches, hotels, shops, bars, cafés, restaurants, and entertainment venues. One- and two-bedroom residences with a floor area of 67 to 112 m2 and spacious 9-19 m2 balconies are available in Marina Living. They are worth from AED 1.37 million to AED 2.07 (from USD 373,000 to USD 563,500). Buyers can use a 60/40 instalment plan. The construction is scheduled for completion in Q2 2025. Related articles:1. Moving to Dubai: A guide for expats2. What Impact Does My Credit Score Have on My Mortgage in the UAE Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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How much does buying a home really cost in Dubai?

Understanding every fee that will be charged to you is the best way to prepare for the high cost of purchasing a property. Whether you’re buying your first house or the tenth, sticking to your budget and getting the math right will make the process go more smoothly. To understand the fees, we break them down into 5 categories: 1. Mortgage 2. Government 3. Service 4. Maintenance 5. Insurance The list might seem long but not all of these costs are upfront. You will have to include upfront costs in your home buying budget while ongoing costs are part of your living expenses. Upfront vs. Ongoing costs Upfront costs Ongoing costs How much are the upfront costs? 1. Mortgage Down Payment This is the initial up-front partial payment. The amount saved for a down payment is typically one of the factors which affect how much the bank is agreeing to lend for a mortgage. This is normally a minimum of 20% of the loan amount. Bank Mortgage Processing Fee For buyers completing their purchase with a mortgage, this fee is payable to the bank. The processing fee is usually 0.5% of the loan amount + 5% VAT, but it varies depending on the bank. Property Valuation Fee Another fee payable to the bank for a mortgage buyer is the property valuation fee. The rate varies for this fee too, and it is dependent on each bank. The rate ranges from AED 2,500-3,500 + 5% VAT. 2. Government Costs paid to the government are to the Dubai Land Department (DLD), established to manage the sale and purchase of land. They approve, organize and document the real estate in Dubai. DLD Transfer Fee All property purchases must be registered with the Dubai Land Department (DLD). The amount is paid by the buyer and usually at 4% of the Purchase Price + AED 580. DLD Property Registration Fee A registration fee, payable by the buyer to DLD at the rate of AED 4,000 + 5% VAT. DLD Mortgage Registration Fee If the buyer is buying the property through a mortgage, a mortgage registration fee to the DLD is also applicable at 0.25% of the loan amount + AED 290. Oqood Certificate (if the property is off-plan) It ensures that the property is registered with the name of the buyer. Issuance fee for Oqood Certificate is AED 5,250. 3. Service Security Deposit When buying a property on secondary market transactions, the buyer is required to pay a deposit to secure the purchase. The amount is typically 10% of the purchase price payable to the seller via cheque. This amount is collected by the authorized agent (a RERA registered broker) who holds the deposit until the property is successfully transferred. Agency Fee Payable on completion of property purchase to your agent at the rate of 2% of the property price plus 5% VAT. Conveyance Fee Appointing a conveyancer ensures all the legal terms and contracts are accurately stated as per the UAE law and protects the interests of all parties involved. The amount is payable directly to the conveyancer with the range from AED 6,000-10,000. How much are the ongoing costs? 1. Mortgage This is the amount you pay every month towards your mortgage. 2. Maintenance Maintenance Fee This fee is for the upkeep and maintenance of the residential communities or buildings. The charges are usually calculated based on the square foot. DEWA / Gas / AC / Internet DEWA, which stands for Dubai Electricity and Water Authority, is the company that manages water and electricity supply in Dubai. Gas, AC and Internet can be chosen from numerous providers. 3. Insurance Life Insurance This is the mandatory insurance for mortgage buyers. Depending on the bank where the mortgage was taken, the rate can range from 0.4%-0.8% per annum on the remaining loan amount. Property Insurance (recommended) Property insurance is not compulsory in Dubai, however, it is recommended. The price range varies and it is approximately AED 1,000 per annum. Related articles:1. The 11 Best Family-Friendly Communities in Dubai2. Things to Consider When Purchasing Mortgage Protection Insurance in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Best Waterfront Living Communities In Dubai

Waterfront homes provide therapy to both the mind and body and are the epitome of luxury living. And Dubai is packed with some top-notch waterfront communities built to satisfy your desires. From waking up to the beautiful view of the beach to watching the sunset over the creek, Here is a list of the best waterfront properties in Dubai: Palm Jumeirah The famous man-made island is home to Dubai’s most lavish beachfront homes. Live in one of the most daring developments in the world, home to luxurious resorts and 2,600 apartments on the shoreline alone. Living in Palm Jumeirah offers prime residential options along with excellent facilities and of course, the most unparalleled views. The Palm itself is known for Dubai’s most exquisite villas with a starting price of 13M. Living with your private beach and having the world’s most famous restaurants at bay. Emaar Beachfront There’s nothing like living in 1 to 4 bedroom luxury apartments while enjoying the crystal-blue waters of the Arabian Gulf and views of Dubai Marina. That is exactly what Emaar Beachfront has to offer, the city’s newest residential attraction. Due to its prime location, residents will have easy access to the beaches, Dubai Maria Yacht Club, restaurants, and the marina mall. The project consists of 1-3 luxury bedroom apartments with a starting price of 1.6M Jumeirah Beach Residence Nothing beats living in the iconic Jumeirah Beach Residence. From a glittering nightlife to a plethora of dining and entertainment options to choose from, JBR is Dubai’s most sought-after beachfront community. Residents can find everything they need at their doorstep. It is also super close to all of Dubai’s major highways, with easy access to the Metro and Dubai Marina Mall. Bluewater Residence If you enjoy the peace away from the city noise, Bluewaters Residence is the place for you! Home to the world’s largest Ferris wheel, Ain Dubai, and just a walking distannce from Dubai’s most fine-dine restaurants and an array of distinctive residential, retail, hospitality, and entertainment concepts. Starting from AED 2.3 million, you can reside in any of the 10 apartment buildings, 4 penthouses, and 17 townhouses. Dubai Water Canal Dubai Water Canal is a 3.2K long waterway that extends from the Creek through Business Bay, before finding its way back to the Arabian Gulf. Nearby you’ll find the magnificent V Hotel and Hilton Dubai as well as several dining and entertainment options. For those looking to move to the heart of the city, Dubai Water Canal has several studios to 4-bed options to choose from for both sale and lease. Residents can enjoy evening dog walks, runs, and much more! Dubai Creek Harbour Dubai Creek Harbour offers spectacular views of Dubai’s skyline, cultural offerings, shopping districts, and much more! It even has its own private beach! The premium waterfront community offers spacious 1-4 bedroom apartments with luminous interiors and breathtaking views, starting from AED 1.28M. Port De La Mer Port De La Mer is a one-of-a-kind island retreat within the busy city. It is the first freehold master community in Jumeirah consisting of ultra-lavish 1-4 beds and high-end amenities with a starting price of 1.8M. Inspired by the allure of the Mediterranean, residents can find an easy-going lifestyle here with panoramic views of the open sea and Dubai’s famous skyline. What’s unique about this community is that it can be reached by both land and sea. So for those who love to be out in the water, a spectacular coastline leisure experience waits. It is also minutes away from Dubai Mall and Dubai’s International Airport. Related articles:1. New Residential Projects in Dubai2. The 11 Best Family-Friendly Communities in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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What Documents Do I Need Before I Sell My Property?

So you’ve decided to sell a property, it could be your current home or an investment one. Either way, you’re ultimate goal is to set a high selling price (in line with current market rates) and go through the sale process in a fast and easy manner. To do both, you must first make sure that all your documentation is up to date, ready and by your side before you put up the For Sale board. Here is a list of all the documents you need to have in place before listing your property for sale: 1. Personal Documents The first and most important of all documents are your personal documents. UAE residents must have a valid passport, resident visa and Emirates ID, updated with your latest information. Whereas non-residents must only have their passport is up to date and valid. 2. Updated Title Deed On Dubai Rest App To sell your property, you need to have an updated Title Deed. This is an important step, as some landlords who bought their properties a few years back will need to update their title deed to the new format which is listed on the Dubai Rest App with an updated QR code. The Dubai Rest App is a smart platform that is designed for all Real Estate transactions across Dubai. Once you download the app, you can upload all your contact information and documents related to your property that facilitates the sale. Another crucial factor is updating all your personal information on the Dubai Rest App. You wouldn’t want all your approval mails to be going to the wrong address or number? 3. Non-Objection Certificate From The Developers And Dubai Municipality Before selling your home, a signed NOC is needed for all the work you’ve done in your house; extensions, upgrades, and any other changes done must be approved via the Developer and the Dubai Municipality. Getting your NOC can be a time-consuming process, so it’s always best to get these documents and approvals ready before you list your villa for sale. It also helps you get the best price for your sale 4. Receipts Of Any Updates And Modifications To keep the value of your property at the best possible sale price, collect all and any receipts that you have accumulated over the years of any upgrades done to the house; this includes flooring, bathroom, kitchen, garden and maintenance, which can add value to your property during the time of your valuation. If you’re looking at embarking on a journey of selling your property, we hope these documents have given you a bit of understanding of what you need to gather before you start. Related articles:1. What Documents Do I Need Before I Sell My Property?2. How much does buying a home really cost in Dubai? Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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What you need to know about mandatory life insurance for your UAE home loan

Life insurance is compulsory when you take a mortgage in the UAE. Whether or not you are aware of it, you will pay for life insurance in one way or another when you acquire a home loan in the UAE. For most banks it is charged monthly, separate to the loan. Some banks increase their interest rate to cover the monthly insurance premium and some banks will make you pay the policy in advance. In the case of married couples, if the property and mortgage is only in the name of the working partner; it is not compulsory for the non-working spouse to obtain life insurance but most advisors recommended at least partial coverage. If the spouse is on the title some banks insist on all applicants of the loan being covered regardless of who is the income earner. CRITICAL ILLNESS COVER (CIC) Most life insurance advisors also recommend Critical Illness Cover (CIC) which will cover your mortgage payments for a period of time in case you are diagnosed with a serious illness and are unable to work. Critical Illness Cover (CIC) is not mandatory in the UAE and can be expensive if you are beyond your twenties so most advisors recommend enough CIC insurance to cover the loan repayments for a few years to enable you to stay in the property while you recover or give you time to sell the property. COST OF LIFE INSURANCE Life insurance premium payments are an ongoing cost of mortgaged home ownership that needs to be factored within your budget. Life insurance costs are minimal for an average loan for non-smokers under the age of 40. However costs can increase exponentially with your age, your health and the amount insured. Any pre-existing medical conditions legally must be disclosed to your life insurance advisor. If you fail to disclose them, this could be grounds to reject your claim. Meaning your family may not receive the insurance payout when they need it most. YOUR COUNTRY OF ORIGIN Your age, occupation and medical history can all affect the cost of your life insurance. But so can your country of origin. In general those from western countries enjoy lower life insurance premiums. Even if you hold a western passport, if you have not lived in that country for more than 10 years, some insurance underwriters may consider where you have lived for most of your life as your country of origin. SMOKER vs NON SMOKER Insurance premiums can increase significantly depending whether or not you are a smoker. You are considered a smoker if you have consumed any form of nicotine in the last 12 months. This includes cigarettes, cigars, Shisha, electronic cigarettes, nicotine gum, and patches. BANK IN-HOUSE INSURANCE POLICIES vs EXTERNAL POLICIES Typically banks have their own in-house life insurance policy underwritten by major international life insurance companies. In some cases, getting an external life insurance policy can be considerably cheaper; especially if you are young and healthy. Some banks will allow you to source your own external insurance. Some won’t. Some will allow you to assign an existing life insurance policy to the bank as long as the total amount insured is enough to payout your mortgage in full. External policies have the added benefit of being portable; meaning you can transfer them to another property or to another bank. Should you become ill in the future you may not be able to secure life insurance at a reasonable cost or at all which could prevent you from obtaining a mortgage in the UAE. An external policy secured today while you are healthy could be hugely valuable in the future. PRE-PAID LIFE INSURANCE POLICIES Some UAE banks will insist on you paying for a 25 year life insurance policy and add the cost of this to your loan. While this saves you the monthly insurance premiums, it can literally add tens & even hundreds of thousands of dirhams to your mortgage; instantly reducing your equity. Proponents of this type of pre-paid insurance policy will point out that you are effectively fixing your insurance premiums at today’s rate but you need to consider the fact that you will pay interest on this extra amount for the life of the loan which makes it considerably more expensive. Also should your loan not run its full term (if you wish to sell or wish to refinance your property with a different bank) you will only receive a partial refund of your pre-paid policy. Should your loan only last a few years this can be VERY expensive. DECREASING TERM POLICY vs LEVEL TERM POLICY With some life insurance policies the amount insured reduces over time as your mortgage decreases. These are know as a “Decreasing Term” policy. While the payable premium remains the same, the amount insured actually decreases as the mortgage decreases. With “Level Term” policies, the sum insured remains the same of the life of policy and does not decrease as the loan decreases. In general Decreasing Term life insurance policies are specifically designed for mortgage protection and are considerably cheaper than Level Term policies. If you are seeking family protection you should consider a level term policy which should be be done separately to your life insurance policy associated with your mortgage. Related articles:1. What are rent-to-own schemes in Dubai?2. Top 5 Things to Consider When Buying a Villa in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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