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Real-Life Example: Significant Savings on Home Buying Costs for Mortgage Buyers

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Now that you have a clear understanding of the total costs involved in buying a house in Dubai (see here) we believe there's no better way to visualize these costs than through an example. Our objective is to show you transparently how much money you could save by buying a property with the help of Nomad Homes experts.

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To do so, we will compare the costs based on a AED 1,000,000 house purchased with a mortgage.

The initial expenses you would need to cover for the property transaction, or alternatively, the savings you should have to buy this property, are as follows:

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How to Reduce the Upfront Home Buying Costs for Mortgage Buyers

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Upfront Costs Without Nomad Homes for Mortgage Buyers

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1. Down Payment - AED 200,000.

The down payment amounts to 20% of the property value, which in this example would be AED 200,000.

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2. DLD Transfer Fee - AED 40,000.

The transfer fee, applicable to real estate transactions in Dubai, is 4% of the property value. For this example, it would be AED 40,000.

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3. DLD Property Registration Fee - AED 4,200.

Registering the property in your name requires a payment of AED 4,200, including VAT.

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4. DLD Mortgage Registration Fee: AED 2,290.

Registering the mortgage would cost AED 2,290, which is 0.25% of the loan amount plus AED 290.

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5. Conveyance Fee: AED 3,000 to AED 6,000.

Hiring a real estate agent in Dubai to ensure legal compliance incurs a cost ranging between AED 3,000 and AED 6,000. For this example, let's consider AED 3,000.

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6. Title Deed: AED 580.

The cost of establishing the title deed is AED 580.

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7. Property Valuation Fee: AED 3,150.

Property valuation in Dubai typically ranges between AED 2,500 and AED 3,000, plus 5% VAT. For this example, let's consider AED 3,150.

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8. Broker Fee - AED 21,000.

The broker or real estate agency commission is 2% plus 5% VAT, resulting in AED 21,000.

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Without Nomad Homes, the total amount needed for upfront costs when buying a AED 1,000,000 property is AED 274,220.

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Upfront Costs With Nomad Homes for Mortgage Buyers

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If you purchase the same property with Nomad Homes, you can benefit from a 3% discount on the total property price thanks to expert negotiation to lower the price you pay. Considering this, the property would cost you AED 970,000 instead of AED 1,000,000. Consequently, the upfront costs would be as follows:

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1. Down Payment - AED 194,000. ⬇️

With the lowered price thanks to Nomad Homes help, the down payment would still be 20% but the purchase price is lower, amounting to AED 194,000.

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2. DLD Transfer Fee - AED 38,800. ⬇️

As this fee is also a % of the purchase price, the transfer fee would also be lower, resulting in AED 38,800.

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3. DLD Property Registration Fee - AED 4,200.

Registering the property would still cost AED 4,200, as it is not based on the property value.

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4. DLD Mortgage Registration Fee - AED 2,230. ⬇️

The mortgage registration fee would be AED 2,230, equivalent to 0.25% of the loan amount plus AED 290. Therefore, it would be lower thanks to a lower loan amount (which depends directly on the purchase price).

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5. Conveyance Fee: AED 3,000 to AED 6,000.

The fee for hiring a real estate agent would remain at AED 3,000.

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6. Title Deed - AED 580.

The cost for establishing the title deed remains the same at AED 580.

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7. Property Valuation Fee -AED 3,150.

The property valuation fee would also remain unchanged at AED 3,150.

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8. Broker Fee - AED 20,370. ⬇️

The broker commission would be AED 20,370, as it is also a percentage of the purchase price, which is lower in this case.

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With Nomad Homes, the total upfront costs for a AED 1,000,000 property are reduced to AED 266,330.

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Comparison of Home Buying Costs with or without Nomad Homes for Mortgage Buyers

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After comparing the costs of buying a property on your own versus with Nomad Homes, the difference becomes evident. Firstly, Nomad Homes saves you up to 3% of the property value by leveraging expert negotiation skills. Secondly, thanks to this price reduction, you would require 2.9% less in initial savings to purchase the property, equivalent to nearly AED 8,000. Additionally, you gain comprehensive support throughout the entire process.

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