Value Homes Dubai, Value Your Investments

1/30/2012

Property:
Type:
City:
Location:
Minimum Price:		AED
Maximum Price:		AED

Learn about existing projects information by subscribing to the Value Homes Dubainewsletter. Simply enter your email address below.

	Frequently Asked Question

	Why is Dubai real estate a good investment? Are there any restrictions for foreigners purchasing in Dubai? Will the property be freehold? Is there Capital Gains Tax in UAE? What is the best time to buy property in Dubai? What documents are required? Can I get a mortgage in Dubai? Can I rent out my property? Can I work in Dubai? Has the value of my purchased apartment appreciated? Is their financing available for Dubai properties? Is it necessary to obtain a lawyer before buying property and if so, what would fees for such advice be? Can I resell my property? What happens to my property if I die? Do I get a Residency Visa when I purchase a property? What rental yield can I expect in Dubai? What protection does the purchaser have against poor workmanship? Can I purchase freehold property in Dubai while sitting in my home country?
	^ back to top

	1.Why is Dubai real estate a good investment? 1. High rental rates Rental rates continue to go up. Rates last year went up anywhere from 10% to 50% depending on the property. With stable rising property value in 2005, rental yields have been moving upward as well. This attracts investors to the Dubai real estate market, while pushing those renting into buying Dubai property in order to avoid future rent hikes. 2. Low priced Compare a Dubai condo to a condo in a prosperous UK or American city and you will find that home or condo prices are around 1/3 the price. Tax-free incomes in Dubai compare more than favorably with UK and U.S. post-tax income levels, and borrowing costs are virtually the same. This large price difference clearly creates an incredible opportunity for Dubai real estate. 3. Mortgage costs are falling Local and international banks are creating more mortgage options by the day, and the result is pushing the cost of borrowing lower. If it costs less to borrow money for purchasing Dubai property then the net effect is a higher Dubai property value. 4. New federal law A new federal property law is expected pass in the next coming year to convert leasehold sections of Dubai to freehold. This will remove an area of uncertainty for investors and increase the pool of investors who would consider Dubai real estate a possible investment option. More investors in Dubai real estate will be good for prices. 5. Dubai property Supply is short and demand is high Supply of Dubai apartments, villas, hotels and condominiums are not expected to meet up with demand for many years to come in the Dubai real estate market. The rapid expansion of Dubai as a business and trading hub and leisure destination for the Middle East is bringing in more and more non residents. 6. Dubai is becoming famous No city in the world is presently more successful at marketing itself than Dubai. The Dubai real estate market can only gain from this marketing. Foreign investors are already active buyers of local property. Dubai property has advantages as a tax haven. These are only just being recognized.
	^ back to top

	2.Are there any restrictions for foreigners purchasing in Dubai? The law in Dubai does now permit foreigners to own freehold property, albeit in certain designated parts of the Emirate.
	^ back to top

	3.Will the property be freehold? Some properties in Dubai will be freehold; some will be on a 99-year renewable lease.
	^ back to top

	4.Is there Capital Gains Tax in UAE? There is no CGT or income tax in UAE
	^ back to top

	5.What is the best time to buy property in Dubai? If you are thinking of buying a property, buy now as prices are going up and increasing by the day and the property market in Dubai continues to grow daily.
	^ back to top

	6.What documents are required? A reservation contract and copies of your passport(s) leading to a purchase contract followed by title deeds.
	^ back to top

	7.Can I get a mortgage in Dubai? Yes, you can get a mortgage in Dubai. Mortgages are available subject to the lending criteria set by the banks/lending institutions.
	^ back to top

	8.Can I rent out my property? Yes, you can, the proceeds of rental income can also be repatriated to your home country. Average rate of rental returns currently stands at 10% of property value. This is subject to change as per market conditions and trends.
	^ back to top

	9.Can I work in Dubai? Dubai is one of the fastest growing employment hotspots in the world. Up to 20 new companies set up in Emirate’s free trade zones every week and since 2002, some 650 companies have registered in the Dubai Media City free trade Zone alone. In fact, there are significant job opportunities for qualified personnel, particularly in the fields of tourism, IT, media and finance.
	^ back to top

	10.Has the value of my purchased apartment appreciated? In general, both appreciation and depreciation in value of a property depends on supply and demand of market force. However, the property market in Dubai is currently witnessing great demand and as such, prices are constantly on the increase and are forecasted to remain this way for some time. This can be clearly seen if comparing the current prices to 6 months or a year ago.
	^ back to top

	11.Is their financing available for Dubai properties? Some Dubai property developers offer financing while others do not. When available financing can range anywhere from 50% to 90% depending upon the property.
	^ back to top

	12.Is it necessary to obtain a lawyer before buying property and if so, what would fees for such advice be? It is not necessary in the U.A.E. to use a lawyer. Your agent can act on your behalf and there will be no legal costs. If you would prefer to we can recommend lawyers from well known and respected law firms in Dubai. The charges vary depending on the time and responsibilities they are given.
	^ back to top

	13.Can I resell my property? Although it is generally understood that freehold ownership provides an owner with absolute ownership, it is correct that many developers are including a requirement in the sales and purchase agreement that if the owner wants to sell his property he must approach the developer for consent. It is assumed that his consent is to ensure that the owner has or shall pay any outstanding contributions to the co-owners or homeowners association. If the property is purchased in the name of an offshore company then the sale is of the off shore company and the developer does not need to be notified.
	^ back to top

	14.What happens to my property if I die? If the property was purchased in the name of an offshore company and you are the sole director then you will need a will in your home country to protect and ensure your family gets immediate ownership of the company. If you purchase in your personal name then to protect all your assets, and to make sure that your estate is distributed as you wish a will should be written. This must be translated into Arabic and notarized at your local Embassy.
	^ back to top

	15.Do I get a Residency Visa when I purchase a property? Most but not all developers offer a Residency Visa with the purchase of property. This is available to the purchaser and their immediate family on application. The cost is approximately 5000dirhams. The visa will only allow the family to reside in Dubai, not work.
	^ back to top

	16.What rental yield can I expect in Dubai? In the past landlords have been receiving comfortably 9-10% yield but as the property market has developed the normal yield is now 7-8%
	^ back to top

	17.What protection does the purchaser have against poor workmanship? The Dubai Government has codes of standards regarding building permits and contractual clauses. The developer has standards that they have to maintain and if there is a problem, assistance can be found from the contract entered into with the developer. Usually there is a workmanship guarantee.
	^ back to top

	18.Can I purchase freehold property in Dubai while sitting in my home country? Yes, you can, Please contact a Value Homes Dubai office in or nearest to your home country. Our professional team will guide and advice you to fulfill your dream.
	^ back to top

Terms and Conditions | Privacy Policy | Disclaimer