Associated cost with buying apt in dxb

[aliasgar_ns]

Hi,
We are now looking to buy our first house in Dxb (freehold).

Please clarify
- Costs associated before owning this property... currently I am aware of the following costs:
a) Commission to agent - 2%
b) Transfer fees - 4%
c) Registration fees - 4%

- Costs associated after owning this property...
a) Maintenance charges

My concern is:
- Is there are separate registration fees 4% which is different from transfer fees which is also 4%?
- Does an owner of a freehold apt pay anything to the government on a yearly basis?

Thanks in advance for your input to my queries

Regards

 

[kokni001]

Hi,
We are now looking to buy our first house in Dxb (freehold).

Please clarify
- Costs associated before owning this property... currently I am aware of the following costs:
a) Commission to agent - 2%
b) Transfer fees - 4%
c) Registration fees - 4%

- Costs associated after owning this property...
a) Maintenance charges

My concern is:
- Is there are separate registration fees 4% which is different from transfer fees which is also 4%?
- Does an owner of a freehold apt pay anything to the government on a yearly basis?

Thanks in advance for your input to my queries

Regards

I am aware you also need to pay:

a) parking fees (one off charge if buying a parking space from DAMAC) + annual charges to Owners Association

b) registration fees to utilities companies + usage fees

c) 5% Housing fees

:wow::wow::wow:

 

[aliasgar_ns]

I am aware you also need to pay:

a) parking fees (one off charge if buying a parking space from DAMAC) + annual charges to Owners Association

b) registration fees to utilities companies + usage fees

c) 5% Housing fees

:wow::wow::wow:

Hi
Thanks.
Housing fee is 5% on what value? Cost of the apartment? or the rental?
Do I have to pay for housing fees even if the apartment is NOT rented out to anyone? I am asking this because after I purchase this apartment, I will keep it vacant for couple of years before I start to live in it. Please advise.

 

[kokni001]

Hi
Thanks.
Housing fee is 5% on what value? Cost of the apartment? or the rental?
Do I have to pay for housing fees even if the apartment is NOT rented out to anyone? I am asking this because after I purchase this apartment, I will keep it vacant for couple of years before I start to live in it. Please advise.

Hi aliasgar,

I have copied the article below from the internet. Hope this answers your question.

"For expatriates relocating to Dubai and living in freehold (owned) and non-freehold (rented) housing you will need to set-up an electric and water utility connection with DEWA (Dubai Electricity and Water Authority). An important factor to understand in the DEWA billing process is the associated housing fee that is incurred. Housing fees for expat tenants is calculated on 5% of the unit’s annual rent, while expat owners must pay 0.5% of the value of the property as determined by RERA’s (Real Estate Regulatory Agency) rental index. These amounts are divided by 12 months and each month invoiced in instalments.
DEWA is requiring expats both living in freehold and non-freehold properties to register their accommodation details on the municipality’s portal in order to assist them to calculate the associated housing fee and to enable the invoicing of DEWA’s monthly utility bills.
It is important for expats to clearly understand this process as you could risk paying a higher housing fee according to the RERA index, which may not be equal to the actual rent being paid. In addition, if you have negotiated a lower annual rental amount on a lease renewal it would be beneficial to take your documentation including most recent DEWA bill, copy of tenant’s passport and the new tenancy contract to the DEWA office to negotiate housing fee adjustments.
A listing of DEWA locations, phone numbers and office hours can be found on the DEWA website.
Check the Housing Fee on your DEWA bill today to check that this is the equivalent of 5% of your current rent.
Eg. an annual rent of AED55,000 should incur a monthly Housing Fee of AED230"

 

[bluesoul]

Cost of Buying

Below are Costs of Buying Property in Dubai with Cash

• 2% Agent Commission
• 4% Transfer Fee
• 50% Service Charges Paid in advance (depends on devloper)

There is no registration fee when buying with cash.

Financed Buying

• 2% Agent Commission
• 4% Transfer Fee
• 50% Service Charges Paid in advance (depends on developer)
• 1% Processing Fee (variable)
• 2500-3000 Valuation Fee (variable)
• Pre-Approval Fee 1000 - 2000 (some banks charge this as well)
• Mortgage Registration Fee @ Land department 0.25%
• Property and Life Insurance Fee 0.45% - 0.55%

After buying you only have to pay annual service charges, housing fee is applied only when you rent an apartment and live as tenant.
Parking Fee is applicable only with some developers, otherwise its included in services charges,
Owner association fee is also included in service charges in most of properties.

When you like a property , check with agent / landlord how much he paid last year in term of service charges, parking, owner association, you will get actual number that way.

 

[totallyproperty]

Wow - there is a lot to think about when buying a property in Dubai!

These charges can certainly add a significant amount to the overall cost.

Regards,


Mark

 

[kradhank]

Hai Aliasger_ns
Pls mension which location you interested in dubai ?1,2,3,BR or town house or villa ? and your budget.

 

[HH&Co]

Wow - there is a lot to think about when buying a property in Dubai!

These charges can certainly add a significant amount to the overall cost.

Regards,


Mark

No stamp duty or Solicitors fees though Mark. It works out to between 8-9% in fees. Not a million miles off what total UK costs are.

:sheep:

 

[Mark007]

Wow - there is a lot to think about when buying a property in Dubai!

These charges can certainly add a significant amount to the overall cost.

Regards,


Mark

Hi Mark, The fees are slightly variable but the they are correct as quoted above. The good thing in Dubai is EVERYTHING is negotiable. (unless a government fee)