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

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Having gained a comprehensive understanding of the overall expenses associated with purchasing a property in Dubai (read full article), we find it valuable to present these costs through an illustrative example. Our aim is to provide you with a clear picture of the potential savings when buying a property with the guidance of Nomad Homes experts.

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To demonstrate this, we will compare the costs based on a house valued at AED 1,000,000 purchased with cash. The initial costs you would need to consider for the property transaction, or the savings required for the purchase, are outlined below:

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How to Reduce the Upfront Home Buying Costs for Cash Buyers

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Upfront Costs Without Nomad Homes for Cash Buyers

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1. Down Payment - AED 1,000,000.

If you have sufficient funds to cover the full payment of the house, this is the most significant expense. In this case, let's consider an example with a property valued at AED 1,000,000.

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

The payment for appointing a real estate agent to ensure compliance with local laws regarding the property has a cost ranging between AED 3,000 and AED 6,000. In our case, let's choose the price of AED 3,000 for our hypothetical purchase.

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5. Title Deed: AED 580.

The cost of establishing the title deed is AED 580.

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6. 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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7. Broker Fee - AED 21,000.

Finally, the commission if you purchase independently using a broker or real estate intermediary is 2% of the total property value plus 5% VAT. For our example, this cost would be AED 21,000.

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If we sum up the total costs of buying a property in cash in Dubai on your own, the amount to be paid would be AED 71,930. Consequently, the total money you would need to pay is AED 1,071,930.

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Without Nomad Homes, the total amount needed for upfront costs when buying an AED 1,000,000 property in cash is AED 1,071,930.

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Now, let's compare how much you could save if you made the same purchase but with Nomad Homes.

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Upfront Costs With Nomad Homes for Cash Buyers

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If you purchase with Nomad Homes, your total upfront costs go down thanks to the 3% discount on the purchase price through real estate experts who negotiate the price on your behalf. Thus, we establish that the property's value you are going to buy will be 3% cheaper, meaning it will cost AED 970,000, instead of 1,000,000.

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1. Down Payment - AED 970,000. ⬇️

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 970,000.

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2. DLD Transfer Fee - AED 38,800. ⬇️

The tax related to the property transaction, as mentioned earlier, corresponds to 4% of the total property value. In our case, it would amount to 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. Conveyance Fee: AED 3,000 to AED 6,000.

Similar to the previous tax, this payment remains unchanged. Therefore, we would need to pay AED 3,000.

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5. Title Deed - AED 580.

We repeat the process for the property's deed, which would cost AED 580 in this case.

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6. Property Valuation Fee -AED 3,150.

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

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7. 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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In total, buying a property with Nomad Homes in cash, based on the given example, would cost you a total of AED 66,950. Adding this to the property's total value, considering the 3% discount, results in AED 1,040,100.

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With Nomad Homes, the total upfront costs for a AED 1,000,000 property are reduced to AED 1,040,100, which means AED 31,830 worth of savings.

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

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After observing the costs of purchasing alone or with Nomad Homes, the comparison is evident. Firstly, because Nomad Homes saves you up to 3% of the total property value through the negotiation managed by an experienced real estate expert, and secondly, thanks to that price reduction, you would require 3% less savings to purchase the property in cash. That amounts to slightly less than AED 31,830, which could be allocated, for example, to future renovation expenses. Moreover, beyond the price reduction itself, working with Nomad Homes provides comprehensive support throughout the entire purchasing process.

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