Buying a New Home: Budgeting Tips You Must Know
The trend of buying homes in the UAE continues to increase over the years. As a matter of fact, the residential real estate market is likely to reach about USD 401.81 billion by the end of 2025. (Statista) That clearly shows the growing demand for residential property purchase. No doubt, moving to a new home is one of the exciting milestones in life. However, it can be confusing and overwhelming at times. It’s mainly because you aren’t just looking for a place to live but also making a big financial decision. Therefore, budgeting for it wisely matters. Whether you are looking for a house with 1 or more bedrooms for sale , this guide will provide you with valuable budgeting tips. Read on to explore everything in detail!
Why Budgeting Matters?
Creating a budget for your next home purchase does much more than just tracking the expenses. In fact, it offers a comprehensive financial framework for the biggest investment of your life.
Without a proper budget, there is a high chance of overspending your income and savings on the new home expenses. As a result, you will be left with little to meet the necessities of your daily life. So, preparing a structured budget has become more crucial than ever before. It will not only help avoid financial burden and enable you to buy your dream house, but also allow you to save for the future while meeting current expenses.
Top Budgeting Tips for Home Buyers in the UAE
Are you excited to purchase your next home? Take a look at the budgeting tips that will help manage your finances better!
Determine Your Budget
Even before you start the search for residential properties, be sure to find out what you can realistically afford. In other words, you need to set a clear budget. An idea of your true financial capacity will make it easier for you to shortlist the homes and focus on the ones that fit your budget.
When it comes to determining your budget, all you need to do is assess your income, savings, and other financing options available. This approach will prevent you from overspending and ensure better preparedness for the financial commitment.
Explore the Financing Options
Not everyone in the UAE can afford to buy a house independently. Most people would require securing finances to purchase their dream home. The UAE offers a wide range of mortgage options through international and local banks.
Be sure to get an idea of the different mortgage options and select the one that best suits your financial situation. Before applying for mortgages, make sure that you meet the eligibility criteria, like credit history, income requirements, and down payment capabilities. If you are still confused, taking the assistance of professional experts will make your task easier.
Save For Upfront Costs
Once you have clarity of how much you can actually afford and your current financial situation, it’s time to start saving. The purchase price of the house is just one part of the total expense.
Beyond that, you will have to budget for various upfront expenses, including down payment, transfer fees, commission of the real estate agent, and more. Understanding all the potential upfront costs will enable you to save effectively and make your dream a reality smoothly.
Budget for Ongoing and Unexpected Expenses
Beyond the purchase of your new home and mortgage costs, you will have to deal with several other expenses. So, budgeting for them as well is crucial.
Make sure to budget for service charges and annual maintenance. Moreover, you also need to take into account the connection deposits for utilities. Budgeting for future upgrades is also essential. Factoring in all these costs will provide you with a clear picture of the overall expenses and help you stay well prepared.
Build a Contingency Fund
The real estate market keeps shifting at intervals. Apart from that, your income may also change, or a financial emergency might arise in your family. So, being prepared for such situations is the need of the hour.
Try setting aside a cash buffer for all the unexpected costs like legal fees, financial emergencies, or major repair works. The buffer can range somewhere between 5 to 10% of the property value.
Final Thoughts
Buying your next home doesn’t have to be overwhelming. With the right mindset, preparation, and budgeting, it becomes a hassle-free affair. Are you ready to embark on a new chapter of your life and in search of a house with multiple bedrooms for sale? If yes, Advanced Properties Limited is the perfect destination for you. Reach out to the experienced real estate professionals, discuss your unique requirements, and purchase the best property that matches your dreams and fits your budget.
