If you are interested to invest in the real estate projects of Dubai, then make sure that rules regulation and criteria to buy a property will be quite different depending on location. The following article will help you in guiding for property investment in UAE.
Tips to consider
- Look and obey the local laws related to rent and buying of property.
- If things have worked out to some limits, get a written validation and if some money is involved get the receipt.
- Make sure that developer or a seller has the property or land on his name and he transfers it on your name. If the property is brand new rest assure that title deed exist for that property.
- Make sure that property or land deeds are not subject as collateral if some loans are taken.
- Make sure whether there are some outstanding bills related to utility bills, tax paid or any other related to the property.
- Check the issues such as electricity or water leak, flooding in winters and electricity problem in summers. You can talk to other developers or agents in the town regarding the property issues.
- Make sure that everything is in place and there are no issues related to the property in all the cases.
- Check the utilities of the property that you will be using later such as electricity, sewage, and
Write your will as soon as possible in the country you are holding the abroad property as the laws related to inheritance might be different than the UK. When you are done with everything, sit relax and ask yourself whether you are happy and satisfied with the property buying or no. if there are some ifs and buts do more checking.
Get Legal Advice Independently
It is advisable to get the legal advice before buying any property. Most people hire translators and lawyers as suggested by the developer and they encounter huge property issues as in some circumstances they work for both the parties. Get a lawyer who speaks English and is fully licensed and experienced in the property selling.
If you are interested in UAE based real estate agent, promoter or real estate company, make sure they are qualified enough to serve in UAE and if have some experience or knowledge about the country you wish to invest in. make sure they are international transactions specialized and have UAE law society registration.
Make sure that the lawyer also has professional insurance indemnity.
Using a self-governing translator/interpreter
If you have some language barrier in the country you are planning to invest in then hire a translator who can do the translation of contracts and other documents for you and interpreter should be with you in all the meetups with clients. Go for the interpreter and translator suggested by your lawyer or the agent.
Buying a property should not be done in hurry, do all your research and evaluate the products and services offered by various mortgages companies. Do not get trapped by the mortgage offered or suggested by your seller or the agent. The lender will clear all your doubts related to the terms and laws.
Get the mortgage which suits your needs and abilities to pay back. There are very hidden things related to the mortgages and make sure about them such as interest rate, setup fee, repayment time and fees related to cancellation.
Read the mortgage agreement with full details and then sign it.
Check about the currency fluctuations of the country you are investing against the AED as it affects the interest rates.
There are many hidden costs involved in the property during other than the actual cost of the property. Some might be different than the UK but the basics are:
- Accountants fee who will be managing your tax issues in UAE. You will only pay tax once the property is sold.
- A fee of quantity surveyor
- Mortgage fee which is comprised of the opening fee, broker fee, title deed payment and bank fees for the management of tax payment and
- Bank fee for transferring funds overseas, discuss before
- Cheque fee bank guaranteed, ask the bank about it
- Fees related to the power of attorney
- Insurance, furniture and shipping costs
- Legal fees related to the will
- Electricity, sewage, water connection fee
- Translation fee
- Yearly tax related with property
- Fees related to drainage and refuse collection
- Income tax fee
- If your property is in the large development area, then you have to pay community fee
Off-plan Property Buying
If you are interested in the off-plan property, LuxuryProperty.com offers a luxury off plan which is considered as best for the higher return on investment. Also, keep in mind that risk is quite higher than that of ready property. Keep the following points in mind if buying an off-plan property:
- If no bank guarantee does not pay to the developer or anyone.
- Make sure that the agreement that you sign developer states that all advance including the interest will be returned to the buyer in case there is no construction within the stated
- Bank guarantee terms and conditions should be thoroughly checked before payments
- Make sure that bank giving you guarantee is offering you financial assistance in the country you are investing in.
- Always have copies of your receipt
- Always keep copies of all the necessary documents that might be needed in case property is not complete within the given time
- Have legal advice if the contract doesn’t have one.
In case things do not work
In case you encounter a fraud and you do not have a bank guarantee/ insurance policy, go for the legal advice independently that will help you take a legal action in the court.