Mortgage News

5 things to consider before becoming a real estate investor

Thinking to invest in real estate? As one of the most lucrative and secure investments, many people have turned it into their full-time job. However; there are several factors that go into purchasing real estate and things that need to be thought over before making such a big decision. Budget This goes without saying but you need to have savings set aside for investments. Mortgages can be costly depending on the bank you deal with, and installments need to be made on time to avoid further penalties. Real estate prices vary depending on the location, size, developer, view and many more variables, so knowing your budget and sticking to it will make your investments go smoother. Locations Different locations offer different returns depending on their accessibility and surrounding hotspots. There are locations good for capital appreciation, while others offer higher rental yields. It’s important to note the differences in locations and the benefits they bring to your investment. Developers In Dubai, there are many developers that sometimes it gets a little confusing. Different developers will offer you different finishes, service charges and prices. It’s important to due your due diligence when researching the developer; finding out their reputation, and whether projects get handed over on time or not. Goals What are your goals with this investment? Is it for resale? Or is it for rent? Knowing your goals will help you determine what is the best location and project to invest in. This is the key to a successful investment. Managing your property It’s important to keep in mind that having an investment property means that it has to be managed. Paperwork, payments, looking for tenants, renovation, and maintenance, and some of the things you’ll have to be doing. However, there are property management options available that can help ease off the burden and give you peace of mind. Related articles:1. Best Waterfront Living Communities In Dubai2. What you need to know about mandatory life insurance for your UAE home loan Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Refinance Your Mortgage Now for Better Rates and Savings!

The best time to refinance your mortgage in Dubai will depend on your personal financial situation and the current Dubai mortgage interest rates. It’s a good idea to refinance when interest rates are low, as this can help you save money on your monthly mortgage repayments. You may wish to think about remortgaging when you want to: Keep a fixed-rate mortgage If you have a fixed-rate mortgage that’s nearing the end of its fixed term, you may wish to remortgage. When your fixed rate period finishes, your remaining balance will be subject to a follow-on rate. Remortgaging may offer you a better deal than this follow-on rate so it is a good idea to research your options. Change the mortgage term Other than repaying your mortgage early, refinancing is the only way to change the loan term. You can choose to refinance with a shorter mortgage term to pay off the loan amount and build equity faster, or you can refinance for a longer mortgage term to decrease your monthly payments. You should also consider the fees associated with the process of refinancing. Fees to refinance your mortgage can add up and they may outweigh any potential. Your current lender may apply an early exit penalty which will be absorbed by your new bank into your loan amount. This could be up to 10,000 dirhams. It’s a good idea to speak with a mortgage broker to determine if refinancing or a buyout as it is sometimes known, is the right choice for you. How long does it take to refinance your mortage? The refinancing or buyout process for a Dubai mortgage takes an average of 4-6 weeks. How do I refinance my mortgage? To refinance your mortgage in Dubai, you can follow these easy steps. Refinancing your Dubai mortgage can be complicated but we’ve set out to remove the headache and make it as simple as possible. The Capital Zone Mortgage team is here for you at every stage of the process. Related Articles: Best Way to Get Loan Against Property in UAE Understanding DBR and its Beneficial Impact on Mortgage

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5 Things To Consider Before Listing Your Villa

So you’re getting ready to sell your home. You’ve done the market research, you know the market value and the current trends… The next step is to prepare your home – This is key! Having done various viewings, open houses, and gathering buyers’ feedback, our agents are here to give up some tips on what most buyers look for when surveying a villa for sale. Make sure you check these points out before you decide to list your home: It’s all about first impressions Buyers want to see a house that they can visualize themselves living in! The condition and appearance of your home can significantly affect the selling price you will ultimately receive. Today’s consumers are tech-savvy and will judge your home on those first photos you take. Agents will also use them on their website to show prospective clients. So it’s important to get your home cleaned and shot with the best lighting. Midday is usually a great time to showcase an open space with an abundance of sunlight within the house. You shouldn’t judge a book by its cover, but buyers do! So make sure that the cover is appealing. Here are a few points: Declutter & Go Minimalistic These days, less is more! And the less clutter you showcase in the house, the larger and more spacious it will look. The way we live as compared to how we should appeal to be living when selling a house is different. We all have a lot of stuff, most of it being personal. So it’s best to put them away. Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards—since virtually nothing is off-limits for curious buyers. Showcase only the basics; the sofa, lamps, pillows, etc. Consider donating as an option for things you won’t need in your new house. This is a great way of making your home look more appealing and chic. And the best part, when you do sell your property, moving out will be a lot easier! Clean up When a potential buyer comes by, you want the house to smell fresh and sparkle. Whether you’re hiring a cleaning service or it yourself, it is important to do this job before and during the home selling process: It’s very easy for a villa, big or small, to gather dirt. Make sure you stay consistent with the cleaning because potential buyers could come by any time. Revamp & Maintenance Some homeowners are hesitant to put a little extra work and updates into their home before selling it. While caution is a good thing, most buyers will see what your home is, right here, right now and in most cases, want a house they can move in right away – especially if it is a high price. And because it’s a huge financial decision for anyone, they’ll want a home that is upgraded. Homes that are freshly remodeled and updated are going to sell much faster. If you spend some time updating major living areas, you can expect to have multiple bids and buyers fighting for your home. Consider adding some plants around the house to make it look fresh and more tropical. If the walls are a little old or peeling off; paint them! Natural or Nude tones are always great for making the overall room look spacious. Another thing to double-check is your electrical, AC, and plumbing. Potential buyers will want to do a home inspection, and any fault in these aspects can cause major problems during the sale process. You can also add some chic art. This will automatically add a contemporary touch to your villa. Clients will always look for a modern house that speaks luxury. And believe it or not, it’s not time-consuming at all – provided you hire the right people. Hire A Good Real Estate Agent Now that the house is ready, the most important thing is to market it. This is where a real estate agent comes in. A trusted agent will have a vast network of leads for buyers within your area. Furthermore, they have a whole team of marketing people to take some brilliant photos of the house and can give you hands-on advice on what changes need to be made for a better and bigger sale. A good real estate agent knows the area, current market trends and can negotiate a good price. Related articles:1. How much does buying a home really cost in Dubai?2. What Documents Do I Need Before I Sell My Property? Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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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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