Real Estate

HOMEBUYING FEES TO BUDGET FOR BESIDES THE DOWN PAYMENT

Dubai is one of the greatest cities in the world and it has proven it with all its multiculturalism, developments and ground-breaking records. One of the markets that have developed a great economy is the real estate market and all that comes with it.

So, if you’ve been looking at townhouses for sale in Dubai or some off plan property in Dubai by great developers such as Emaar or Meraas, you’ve got plenty to choose from. The Dubai property market is very wide and has many options for every kind of buyer.

There’s a little downside for those who are planning to buy or invest in a property. For those who don’t know, there are some expenses, fees, and costs you have to take in to consideration when budgeting for the house of your dreams. Here are some:

  1. EARNEST MONEY

When you’re buying a property from a seller, you’ll probably have to make a deposit to show good faith and your commitment to the process of buying the mentioned property. This deposit is non-refundable, so be sure you’re going to close on the deal or you will lose your money.

  1. PROPERTY TAXES

Outside of the mortgage payment, property taxes take a lot of money from you. Approximately 2% or more of the property’s value.

  1. INSURANCE

You’re going to need to protect your property from any damage, and also the mortgage requires the borrower to pay for insurance for the property. This fee will probably be covered in the escrow amount that comes with the mortgage.

  1. CLOSING COSTS

There are plenty of fees that are charged by the lenders such as loan origination fee, discount points, appraisal fee, credit report, tax service, title insurance, attorney witness for the closing, underwriting fee, survey, and others.

  1. MOVING EXPENSES

There are plenty of factors that can affect moving expenses such as how many stories does the home have, how much stuff are you moving into your new property, number of rooms, how far are you moving out and others.

You should check out prices with different moving companies so you get the best rate in the market.

  1. UTILITIES

You should be prepared to pay for several utility fees, such as gas, electricity, cable and internet service, home phone, water, and home monitoring systems. Of course, if you’re moving into a bigger place, your utility costs will be even higher than the smaller ones.

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