Is mortgage available on UAE property?
50 to 75% mortgage available to foreigners subject to credit lending criteria of the Bank.
Is it easy to liquidate the property?
Logistically, it’s very easy and relatively inexpensive to invest in property in Dubai,
whilst the following points ensure the property market remains highly liquid:
•Some of the highest rental yields in the world
•Strong capital appreciation
•Readily-available financing options
•Zero tax
Is it easy to do business in UAE?
Free Zones give companies 100% foreign ownership; exemption from all import duties; 100% repatriation of capital and profits; and freedom from corporate taxation. It is very easy to incorporate company and do business in UAE.
Is it safe to live in UAE?
The World Economic Forum’s Global Competitiveness Index 2017-2018 revealed that the UAE is the second safest place in the World in which to live, just behind Finland.
Is the currency stable in UAE?
The UAE dirham being pegged to the long-established and globally recognized US
dollar means the value of the currency has enjoyed balance and growth, as well as
stability to the import and export trade.
Is it secured to own property in UAE?
It is regulated by RERA and all projects have dedicated escrow account.
How much is the rental returns in UAE?
It is between 8% to 12% per annum depending on the area and type of property. It is higher than major market like Singapore, UK , Australia, Hongkong, USA and India.
Is it possible to renew residence visa on its expiry?
Yes it can be renewed till you own the property in UAE.
What type of visa available on property ownership?
Investor’s Residence visa is available for 2 years, 5 years and 10 years.
Is there any tax on property in UAE?
No. There is no property tax. Neither there is tax on rental returns nor on capital gains.
What is the status of Property ownership in UAE?
It is 100% free hold property and any foreigner can own property with 100% Ownership.
What are the advantages of investing in Dubai compared to other part of the World?
- As compared to the other global cities, property process in Dubai are still inexpensive. This means, there is a tremendous scope for growth. Every year, the demand for properties is increasing at a rapid pace. This makes it a good investment option.
- Real estate investment is known to be an inflation-beating investment. If you buy property with the support of a loan and find it difficult to repay it, you can lease the property and allow the rent to take care of the same. This way, your debt gets repaid while the property appreciates in value. Being a global city and a trading hub along with all the benefits mentioned above, properties are always in demand in Dubai and finding a tenant is not a difficult task.
- Taking a cue from the point above, rental income can be a good source of secondary income for you. With ever-rising costs, a secondary income is needed by most people. While the rent can add to your income, property appreciation with time secures your future.
- Like the stock market, the real estate market is volatile too. However, it almost bounces back. You will never face a situation where the value of your property suddenly falls to zero. Hence, investing in real estate insures you against the possibility of a complete loss of capital. In Dubai, as the government encourages business and trade, property values are expected to invariably rise.
- As a real estate investor, you have more control over your investments as compared to other investment options. This is simply because the asset is tangible. Also, diversification in real estate just means buying different types of property.
- Investment opportunities in Dubai are open to anyone from anywhere in the world. By investing in real estate, you can benefit from the growing economy of Dubai too.
- Banks in Dubai are easing the norms for home loans and boosting the demand for properties. And an increased demand leads to an increase in supply. This means better deals and more options for buyers.
- For unforeseeable reasons, if you need to take a loan later in life, a real estate property can work as a great collateral. It ensures that you get loans quickly at a good rate. Banks in Dubai offer these loans at lowest possible rates.
- Property prices in Dubai are cheaper when compared to other major cities around the world.
- Dubai offers excellent rental returns from property as compared to other part of the world.
- There is no annual property tax in Dubai.
- Developers in Dubai offer attractive payment plans on off-plan property.
- UAE offers a residence visa to freehold property owners. The recently announced long term investor visa has set a new wave of excitement among investors to go full throttle and plan for long term.
- Protection of intellectual property rights.
- According to a recent law property developers are no longer allowed to collect service charges from property owners. This bring more transparency on how the service charges are being spent.
Summing up
In the global world that we live today, there are plenty of opportunities to participate in the growth of a country/region by investing in it. The investment opportunities in Dubai are one such chance. You too can be a part of this fast-growing economy, just by purchasing a property. With the World Expo 2020 slated to be hosted in Dubai, 25 million people are expected to come to the UAE creating around 300,000 new jobs. The real estate market of Dubai is bound to experience a huge surge during that period. So, if you are contemplating investing in real estate in Dubai, the time is now!
What are the benefits of investing in Dubai?
- It is strategically located between east and west. It helps connect Middle-East, Asia, Africa, and Europe. It is centrally located and very well connected to entire World.
- World Class Infrastructure – Dubai stands proudly among the list of top cities that provide state of the art infrastructure to its residents.
- The UAE is also known for its world-class entertainment, luxurious leisure facilities.
- A wide range of business premises ranging from the mainland to free zones
- A constitutional monarchy since 1971 – UAE is the third most peaceful country in the Middle East and North Africa (MENA) region.
- Crime levels in Dubai are very low. The government pegs a lot of importance on good living conditions and quality of life.
- According to Doingbusiness.org. UAE ranks first in the region for the ease of doing business. This is based on parameters like starting a business, dealing with permits, registration of property, etc.
- Dubai has favorable business regulations to encourage foreign investments.
- It is a tax-free city. Hence, people from around the world come to work or look for investment opportunities in Dubai.
- UAE has a liberal policy encouraging foreign individuals and companies to invest and take part in the mutual growth process
- The country has been ranked among world’s top 5 hottest shopping destinations
- Competitive energy costs, in terms of electricity, water, and oil
- Low cost of living compared to other metropolitan cities
- Dubai has a sunny weather round the year with 365 days of sunshine.
- Dubai, home to 200 nationalities, is one of the most globally diverse places to live and work in.
- Ministry of Happiness. The role of the ministry is to improve channel policies and plans to achieve a happier society.
- No corporate tax.
What is the difference between a real estate agent and a real estate broker?
Most states require real estate sales professionals to be licensed by the state, so that they can control education and experience requirements and have a central authority to resolve consumer problems.
The terminology used to identify real estate professionals varies a little from state to state. Brokers are generally required to have more education and experience than real estate salespersons or agents.
The person you normally deal with is a real estate agent or salesperson. The salesperson is licensed by the state, but must work for a broker. All listings are placed in the broker’s name, not the salesperson’s.
A broker can deal directly with home buyers and sellers, or can have a staff of salespersons or agents working for him or her.
Why should I use a real estate salesperson?
A real estate salesperson is more than just a “sales person.” They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home. While it is true they get paid for what they do, so do other professions that provide advice, guidance, and have a service to sell –such as Certified Public Accountants and Attorneys
The Internet has opened up a world of information that wasn’t previously available to homebuyers and seller. The data on listings available for sale is almost current – but not quite. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.
If you’re selling a home, you gain access to the most buyers by being listed in the Multiple Listing Service. Only a licensed real estate agent who is a member of your local MLS can get you listed there – which then gets you automatically listed on some of the major real estate web sites. If you’re buying or selling a home, the MLS is your agent’s best tool.
However, the role of an agent has changed in the last couple of years. In the past, agents were the only way home buyers and sellers could access information. Now agents are evolving. Because today’s home buyers and sellers are so much better informed than in the past, expertise and ability are becoming more important.
The real estate agent is becoming more of a “guide” than a “salesperson” — your personal representative in buying or selling a home.
I have a family friend who is a Realtor. I like her and she is a help but she gives me one price to sell my home for and I think it is too low. So I called another agent who suggested a price more in line with my expectations. Who do I choose?
You might want to consult a couple more Realtors on the market value of your home. Most of the estimates should be in the same ballpark.
It could be that your friend is being more honest with you about the value of your home and the other Realtor gave you a higher number because he already knew you expected it. This is called “Buying a Listing” and is the subject of an article on our web site.
Or it could simply be that your friend is a good friend, but not that great of a real estate agent.
Mixing business and friendships is always risky to the friendship. On the other hand, if your friend is truly competent and was providing wise advice, she may be offended if you ignore the advice and choose another agent.
I have to make a choice between an updated home in an older neighborhood or a newer home in a more modern neighborhood. The home in the older neighborhood has almost everything I want and is much larger, but which makes the most sense as an investment?
If your goal is to buy a home for it’s resale value and the one you are thinking of buying in the older neighborhood is at the upper end of values for that neighborhood, then it may not be the wisest choice. If it is similar or lower in price to the others, then there should be no problem, because pricing should be considered in relation to the local neighborhood and not compared to homes in other neighborhoods (for the most part)
Plus, is it a neighborhood on the decline, or are others going to be fixing things up, too, so that it is a neighborhood that is improving? It could turn out to be a very good deal as long as you don’t “overpay” because of the recent improvements.
Remember that you also buy a home for it’s value to you as a “home,” and that is something else you should consider. Which neighborhood would you AND your family feel most comfortable in?
When buying a new home, what upgrades should we go for? What holds the most value? Do we upgrade the lot? Pick more square footage in the house? Add an extra bedroom?, etc.
A lot depends on why you are buying the house. Are you buying it mostly as a home or mostly as an investment? There is a difference.
For the most part, upgrades are high-profit items for builders. They aren’t designed to enhance the value of the house, but make you happier with the house you do buy.
If you are looking at your home as an investment, then you buy from the smaller to medium size in the tract and spend only a minimal amount on upgrades. If you are looking at your purchase as a home, then you select upgrades that will enhance your quality of living.
One rule of thumb is to always upgrade the carpet and padding.