Property acquisition is a critical time in buying, however it is very vital that you understand all the extra costs involved to guarantee an easy and stress-free transaction. Check out the following additional costs when you plan to buy property:
Property Registration Fees:
These are obligatory payments that must be made to register the property with relevant authority. These charges are generally based on the percentage of the purchase price and vary from place to place.
VAT:
In Dubai, Value Added Tax (VAT) is applicable on sale of properties. The current rate of VAT on property sales amounts to 5% percent of the purchase value. This cost must be added while budgeting for your property purchase.
Brokerage Fees:
Brokerage fees will usually have to be paid if you select a real estate broker or agent as an assist in finding a home for yourself. Usually, these rates are determined as a share of the property’s purchase price but can differ depending on what agreement was reached with regards to this fee with a broker.
Mortgage Arrangement Fees:
To take out a mortgage loan for financing your home purchase can result in you paying mortgage arrangement fees at times. These charges account for sets up costs of mortgages which may be different by lenders’ policies.
Maintenance Fees:
Maintenance fees could be necessary if you buy a house within gated communities, condominiums or apartment complexes specifically those which consist of common spaces or facilities such as roads clubhouses swimming pools etc., which should be catered for through maintenance fees.These remainders go towards maintaining common areas and providing amenities and other services within the development.It is crucial when budgeting for your own purchase to prepare for these continuing expenses.
buying property involves more than just purchasing price because there are others things like registering, taxation fees, brokerage costs, in house mortgage payment charges and maintenance cash required.Being aware about this will prevent eventualities by making sure they are factored in your budget hence a successful property purchase that is financially stable.
