For many, buying a freehold property in Dubai is the final goal – a place that is completely and permanently their. Yet, the feeling of total freedom comes with real financial responsibilities that aren’t always obvious. The sale price is only the first step.
Being aware of these hidden fees empowers you to own your dream with confidence and no nasty surprises.
Unexpected repair bills:
When you own a freehold property in Dubai, you are your own landlord. If the roof leaks, you fix it. If the heater breaks, you replace it. There is no one to call for help. Major repairs can be very expensive. Setting aside a fund for home maintenance is a smart move. Things will want fixing eventually.
The annual property tax:
Many local governments charge a yearly tax for property ownership. This is not a one-time fee. It is a bill that comes every year. The amount is often a small percentage of your property’s value. You must budget for this recurring cost. Forgetting to pay can lead to penalties.
Rising insurance premiums:
Home insurance is essential. It protects your investment from fire, storms, or theft. But the cost of insurance does not stay the same. It can go up over time. After a bad weather season, everyone’s premiums might increase. You want to be ready for these gradual rises in your insurance costs.
Utility connections and upkeep:
In some areas, you might have to pay for your own utility connections. This includes hooking up water, electricity, and gas to your land. These connection fees can be high. You are also responsible for maintaining the pipes and wires on your property if they fail.
The true cost of your time:
Maintaining a property takes a lot of time. You spend weekends mowing the lawn, cleaning gutters, or painting fences. You have to find reliable contractors for big jobs. This time is a real cost. It is time you could have spent relaxing or with your family. Homeownership is a hands-on job.
Reserve fund contributions:
Sometimes, freehold communities have shared areas like parks or pools. To maintain these, all owners pay a monthly or yearly fee. This is called a reserve fund contribution. It covers gardening, cleaning, and repairs for the shared space. This fee is mandatory and can increase, adding to your regular expenses.