Guide How to Buy First Property

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Buying a House

Looking for new apartments? Here you find everything you should know about buying a house. 

Looking for a New House? Step-By-Step Guide to Buy First Property

Home, sweet home! Home is the place where you feel the most comfortable, safe, and relaxed. You want your home to feel like an oasis out of all places. Yet, the thought of buying a house strikes fear in most people, especially if it’s their first deal. To make things easier for you, check out this simple guide to buying your first property.

Be Sure If Buying a Home is Right for You

There is a bunch of factors that come into play when considering buying a house. First, you want to make sure that you can afford it. You might ask yourself whether you will be able to sustain it.

Owning a house is not for everyone. Some people would rather rent an apartment because it brings fewer responsibilities. Before making any hasty decision, evaluate all the pros and cons of owning a home.

Decide If You Should Sell First

If you want to move to another place and the budget you have is not enough, you should consider selling your property first. It might be quite risky, especially when the market is on the rise, and you have only one flat or house. If selling your property means that you will afford your dream house, it’s worth taking a risk and seizing the chance.

You can spend some time living with your parents or friends. It’s much better than taking a mortgage. As of today, 63% of homeowners have mortgages. In 2019, only across the US, the household debt amounted to a staggering $13.86 trillion. Taking a mortgage is always intimidating since you know that you will have to pay back plus an interest rate. To calculate the amount of money you will pay as interest rate, use this formula: principal loan multiplied by the agreed annual interest and divided by 100. If a mortgage is your only option, you should find a specialist that will help you to arrange the best deal.

Decide on Your Budget

Deciding on your budget is very important. You want to know how much money you have and are ready to spend. To sum up your overall budget, you might consider:

  •   the amount of money you’ve saved;
  •   the capital you can get upon selling your property;
  •   support from your family and/or buddies (how much they can lend you).

Bear in mind that you might have some extra one-time or ongoing expenses upon purchasing a new home. Thus, aim for having 15% more than the price of the property you are willing to buy. That way you can be sure that you still have the change in your pocket for a rainy day.

Get Your Finances in Place

Most people want to have their own property. Yet, not everybody can buy one right away. To get your finances in place, you should fully commit to the idea of buying a property.

If you need a mortgage, find out how much money you need to pay for the initial deposit. You should also decide whether you want a fixed-rate mortgage or an adjustable-rate loan. The only difference between the two is that, in a course of the adjustable-rate loan, the interest rates can vary while during a fixed-rate mortgage the interest rate stays the same. You agree to a certain type of mortgage upon signing the deal with your bank.

In 2020, a 30-year fixed-rate mortgage has an average interest rate of 5.08%. Using the formula mentioned above, you can calculate how much you will pay for the interest rate. For example, if you have a principal loan of $150,000, an interest rate of 5.08%, and a 30-year fixed-rate mortgage, you will pay an additional $228,600.

Decide Where You Want to Live

Picking the right location to live is crucial. If you want to move to another city, consider only top developing cities with powerful infrastructures. One of those cities is Dubai. Every year, Dubai is topping the charts in quality of living, safety, and wealth. When compared to other big cities like Paris or New York, Dubai is more affordable.

From its sandy beaches to mesmerizing skyscrapers, Dubai is the city of contrasts that has a place for everyone. Here are some of the most popular areas to buy property in Dubai:

  •   Jumeirah Village Circle;
  •   Jumeirah Beach Residence;
  •     Business Bay.

Choose a Platform Where You Would Like to Find Variants

It can be quite challenging to find the right place without a reliable partner by your side. Fortunately, we don’t have to look through advertisements in newspapers since there is the Internet. One of the best platforms that have the biggest ranges of apartments to buy in Dubai is Metropolitan.

Metropolitan is the best real estate company in Dubai. Metropolitan offers its customers various services associated with the property such as:

  •   buying property;
  •   property management;
  •   renting property;
  •   mortgages.

Make an Offer – and Get it Accepted

Go to Metropolitan.realestate and view the best apartments in Dubai. Decide which property suits you and your budget. You will be able to read a small description and see photos of each property on the website.

After you’ve settled your decision, you can contact an agent (find his or her contact info in project details to any property). The agent will direct you through the process and help make your first deal.

Decide If You Want a Survey

If you’ve found the property you want, you should consider asking an agent about a survey. The survey will help you understand the state of the apartment in detail. An expert will inspect the property and provide you with commentary. Surveys are optional; they can help you to avoid surprises like window leaks or cracking to external or internal structures.

Arrange a Deposit

The first step of securing a home is paying the first deposit or earnest money. Earnest money is a small fraction of money you have to pay to show your serious intentions of buying a property (usually 5-10% from the total price).

Final Arrangements And Negotiations

Before moving in, you should negotiate final things with your agent. Then, a conveyancer will contact the land office and inform them about property ownership transfer. After you pay for the property and receive ownership, the property is officially in your possession.

Take Possession of Your New Home

Now that you are a new owner, the agent will hand out the keys to you. After that, you will be able to start a moving process. Hire a removal company which will help you to transfer all your stuff. Create a checklist of all the stuff you are moving with you.

Have any questions left? Metropolitan helps thousands of people to buy apartments in Dubai each year. Get in touch with us, and we will make buying your first home a positive experience!