How To Buy A House
After a turbulent economic period, the residential property market in Dubai seems to be on the rise again with investors actively contemplating to buy property in the city once again. However, investors have become more conscious of the economic volatility around the world and are making more informed decisions about where they put their money.
Freehold vs Leasehold
In comparison to purchasing leasehold property, it is advisable to opt for freehold property for one reason; control. As a freehold property owner, you are allowed to what you want with your home provided you are abiding with the rules and laws set within the Emirate. Freehold areas in Dubai include apartments and villas in Dubai Marina, the Palm Jumeirah Islands, The World islands, Emirates Living, Dubailand, among others. A few things to keep in mind when buying property:
Buying property in Dubai is much easier now that the law allows foreigners to own freehold property. In order to buy property, you are first required to make a 10% initial deposit. The remaining balance is then paid off in instalments till the completion date. For resale property, a holding deposit is paid at the outset and completed once funds are in place to carry out the exchange. Bear in mind that although Dubai is tax-free, you may find that you are required to pay taxes in your home country. This may apply to rental income or capital gains on disposal. Get professional tax advice on this matter to avoid any unexpected bills at a later stage.
Many banking and financial institutions offer mortgage loan for property purchased in the UAE. Contact them directly for their terms and conditions.