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Propery Investment in Dubai Questions

Discussion in 'Dubai property' started by fahmed20, Jul 23, 2008.

  1. fahmed20

    fahmed20 New Member

    Hello All,

    I am new to this Forum...I am from the US, and am currently a real estate investor. With bad economy here in the US.. I want to invest wisely.

    I plan on making a trip out to Dubai early next year with the intentions to invest in real estate. I have a few questions and concerns. If anyone could help, I would greatly appreciate it!

    1. I am planning on putting down 60-80k US Dollars.. What kind of property can I buy with this type of down playment?

    2. How does the mortgage market work? Is it hard to get a loan? What are interest rate, and how long are the mortgage terms.

    3. My plan is to buy the propery, rent it out, and get enough money to pay the mortgage. Eventually down the road (3-5 years) sell it and take profit from it.

    4. From what I heard there is no propery taxes or capital gain tax.. is that true?

    5. What should I look for what investing in Dubai.. What are good parts to invest in

    ANY HELP WOULD BE GREATLY APPRECIATED.
     
  2. acassim

    acassim New Member

    I will try to answer your questions below but this is all through my own research and living in Dubai. Firstly you will have to decide whether you want a finished property or a property under construction as this would help you with your decision making.

    1. There are lots of properties you can buy with that amount. Look at specific areas and start doing research on those areas before putting your money down. Dubai is growing at an alarming pace. There are quite a few pre-launch projects with 5-10% downpayment plans and 10% every 3 months. These will only be ready in 3-4 years realistically. The ready properties are more expensive but you can rent out immediately.
    2. For non-residents you can get a maximum of 70-80% of purchase price - this is all linked to the developer. Certain banks fund certain properties so you will have to do more research on that front. Interest rates vary between 7% to 8.5% and periods are from 15 years to 20 years but you can go for a shorter period. Most banks do not finance smaller developers so you can go for their payment plan over the construction period. Just be warned though that as the market moves towards the end user side, it will be difficult to sell those that are not financed.
    3. If you want a ready property on the resale market, you will pay a premium and you will have to pay additional like transfer fee's, agency comm, so keep these figures in mind when you are buying anything close to completion or completed.
    4. No there are no taxes or CGT at the moment.
    5. There are no "good" or "bad" parts of Dubai. There are many areas that you can invest in. You have to look at the developer name when purchasing. Look out for the big names like Emaar, Nakheel, Dubai Properties etc. These are more reputable and somehow the market thinks they are better (albeit the shoddy finishings on these).

    Hope that answers your questions.
    I hope that answers your questions.
     
  3. Mahawish

    Mahawish New Member

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    Last edited by a moderator: Aug 1, 2008
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