How to reduce the risk of buying off-plan property in Dubai?

Development market is rising rapidly in Dubai, buying an off-plan property has been always a conflict, as having a property that they cannot actually view or feel is a challenge. People think of it as a complicated and unsafe process.

However, the reality is that buying an off-plan is an intelligent step through your investment future.

The fact that you can choose your own property in any popular location, that matches your expectations will raise the value of your property from the time you buy it to the time that the construction is finished. So, you will have a direct equity profit once you move in.

The other great advantage that all off-plans come with structural guarantees, so there is no worries about any hidden defects, and the fact that this is will be yours from the start and you will be monitoring your unit being built block by block will save you the effort of maintenance cost for the first years of your ownership. In addition to that, buying an off – plan you will be always capable of designing your own dream house, fittings, and customize your own dream property to your taste.

Nevertheless, there will always be a risk into buying an off - plan property Dubai which includes:

Research your development

You always have to make sure that you are fully aware about the project timeline in order for you to plan your finances and when the property is ready for you to move in. Taking into consideration that there might be some extra payments to settle such as walls, fencing, and lawn for your garden.

Nevertheless, if the development you choose is a part of an estate or a complex, make sure that you have an idea when the other units will be finished to avoid living in a construction site for few years to come.

Research the developer

What is important for you as a next step of buying an off – plan property is to make sure that the developer of this project is highly trusted and reputable, the developer must have insurance so if the project stops on any stage, you will be able to get your deposit back.

In addition to that, you should always research what other properties the company has built to figure the value of money you will be earning and the quality of the building including the finishing to have a more clear idea of what to expect from such a developer, and get an image of your new property.

Research the finances

Buying an off-plan property comes with its own financial settlements. If it is a sectional title property, your loan must be granted before the developer starts with the construction. But the property will not be registered under your name at the deeds office until the property is completed and the bank’s inspectors signed it and agreed to release the home loan to the developer.

If it is a freehold or plot-and-plan property, you will need two loans, one for purchasing the land and one for the building.

The first will be registered on transfer of the stand into your name and you will start paying once the property is complete. The developer will cover the second known as a building loan during construction, but only when the home reaches a certain stages of completion that is assigned by the bank’s inspector or by you.

Check on the construction

You must keep in mind that it is very important to visit the building site on regular basis to check the construction process and to make sure that everything is being done correctly and as per the building contract details.

If you have any concerns about the sub-standard work, you have to go over them with the developer and the bank before any upcoming payments to the builder.

At the end, you have to inspect the competed property carefully and write a list of the things that need to be noticed and addressed before you sing of the occupation certificate.