In recent years, to have a holiday home in Dubai is becoming a popular tendency amongst well-off Middle Easterners, Indians and North Africans. Many of them have already discovered Dubai and have made a habit of coming back a few times a year either on a shopping spree, for leisure purposes or for various medical treatments.
From secluded island dwellings to luxurious city escapes, holiday homes have the purpose to offer a true retreat and enjoy natural beauty. In the Middle East you can’t find a mountain lodge or a countryside cottage, but you can choose a more or less luxurious second home in an unique location by the sea in accordance to your lifestyle preferences.
But how to choose the perfect holiday home in Dubai? There are several factors to consider before spending a considerable amount of money, or even before contacting a property agent.
The so-called holiday homes are fancied not only by millionaires who want a place to escape for a few days of the year – many individuals and families consider purchasing a second home, which can be also a great investment opportunity and a source of income. Holiday homes are often used by the owner for a few weeks, while they can be rented out during the rest of the year. Their prices also rise, especially in stronger markets, so if you wonder where to invest your money right now, Dubai offers a good opportunity. There are many properties, marketed as holiday homes, and despite their higher price tag, compared to regular homes in the city they still make a good investment. However, you need to pick the right one for you, at the right price, and to consider a few additional factors.
As with any kind of property, location is essential, but with vacation homes, you need a place, attractive enough for you and your family, and for holiday-makers, as well. This is in case you want this second home to be a good investment, too. You want a top location, in proximity to theme parks, beaches, shopping areas, attractions and various other facilities such as pools, golf courts, ski areas, and so on. Dubai has plenty of these, so it wouldn’t be difficult to pick up a good location.
Consider all costs
The price of the property makes the bulk of the purchase amount, but there will be additional costs – possible repairs, maintenance, furniture, in addition to 4% transfer fee and agency commission due in the initial stage of the purchase. A good option is to find a new, furnished home, because renovating an old one could cost more than you have imagined. There is also the option of buying a home in a closed residential or resort-style complex, where maintenance and various services will be included in the sales price, or will be due on annual basis in the form of service charges. It is a popular scheme with holiday homes, considering you stay there to relax and escape from everyday duties and chores, not to clean, do laundry and cook again.
Add mortgage payments and possible rental income
Make sure you can afford to pay the mortgage, unless you are buying cash. Don’t think that the monthly or annual rent you get will be enough to cover the mortgage. Do your homework on current nightly rentals in the community, but don’t rely only on them – this income will certainly help out in paying various expenses such as utilities, taxes, or insurance fees, but sometimes, you will have to pay these yourself.
There’s one golden rule with holiday homes – you need to love the place enough to come back. But it’s also important to make sure the location is popular with tourists if you plan on receiving a rental income from it. In Dubai, such a place would be The Palm Jumeirah, since it’s quite a unique place – a man-made island which offers luxury, private beaches, high-end properties and a lot of amenities and attractions nearby. In fact, the island itself is an attraction, so it will be extremely appealing to anyone who wants to spend a few days in Dubai. But most importantly, a holiday home there will actually bring you excellent profit, since it’s one of the most-preferred locations in the emirate.
Of course, there are many other factors to consider when buying a second home, as with any other type of property, but these are essential when we talk specifically about holiday homes.