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For Dubai's economy it is definitely boom time and is a welcome note to investors. |
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Dubai is a tax-free haven. |
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Investing in Dubai is still a lot cheaper than other parts of the world. |
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Advance communication technology is also an appealing factor. |
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It's safe to reside in Dubai. Very low-crime rate. No terrorist activities in the city. |
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Education system is Excellent. |
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Advanced healthcare services. |
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Plenty of entertainment options like beaches, great dining spots, malls, clubs, pubs, multiplexes, amusement parks etc. |
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Clean, safe and secure environment. |
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Advance infrastructure. |
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| 2. Why is 'Dubai real estate' a good investment? |
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| Dubai is fast becoming an economic, business, and traveling destination. With more and more people relocating to Dubai for business, employment, and leisure, the property market is going through a boom and investment in this sector is nothing but potential revenue. There are plenty of reasons, like: |
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Dubai property: Supply is short and demand is high |
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Supply of Dubai apartments, villas, hotels and condominiums are not expected to meet up with the rapid expansion of non residents and visitors in Dubai. |
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Dubai is a marketing Hub |
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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. |
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Low priced |
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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. |
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High rental rates |
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With stable rising property value in 2005, rental yields have been moving upward as well. This attracts investors to Dubai real estate market, while pushing those renting into buying Dubai property in order to avoid future rent hikes. |
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Mortgage costs are falling |
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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. |
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New federal law |
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A new federal property law is expected 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. |
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| 3. Why are Europeans opting for Dubai as a place to settle? |
| For most Europeans who are settling down in Dubai, the reasons are plentiful: |
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Dubai's tax free options are highly irresistible. For most Europeans, while comparing the tax factor to their respective home countries, where taxes are quite high, working and living in Dubai is an inviting factor. |
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There are a variety of dining spots catering to cuisines from all over the world and so Europeans will definitely not miss home on this front. |
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Most supermarkets are well-stocked with food products from Europe and for people who relocate here, this is very helpful. |
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Dubai has a very modern outlook, so there is no strict dress code. |
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The shopping scene, bars, pubs and clubs are in abundance and so it is like a home away from home for Europeans. |
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Europeans are allowed to swap their driving licenses for UAE licenses by paying the required fee. They don't have to apply for fresh licenses or take new tests. |
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| 4. Why is Dubai real estate priced so much cheaper than other premier real estate markets in the United Kingdom and abroad? |
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| Though real estate is growing at an amazing pace, the costs and charges levied are comparatively lower than that in UK, US, and Japan etc. This could be because of cheaper labor, lower building costs, lower additional charges and no levies, etc. As a result, expatriates or foreigners can afford to invest in high-end properties by paying lower costs. |
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| 5. What is a Mortgage? |
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| A mortgage is a loan that is given against a property wherein the property stands as collateral till the loan is fully repaid and there is a fixed interest rate also accrued on the loan. The amount borrowed depends on the income of the borrower and the price of the property. The repayment is determined by the mortgage term. If it’s a shorter repayment period, then the monthly mortgage payment will be higher. If it’s a longer repayment period, then the monthly payment is lower. |
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| 6. How do mortgages in Dubai differ from those in UK and abroad? |
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| Dubai works quite differently and the repayment structure is quite encouraging in Dubai. First of all properties can be owned as freehold or leasehold only. Mortgages are often given for properties which are still in planning stages and this is something that does not exist anywhere abroad. |
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| 7. Do foreigners avail mortgages for property in Dubai? |
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| Yes, mortgages can be availed by expatriates and/or foreigners too, on leasehold or freehold options. The primary and principal banks or concerns offering mortgages and loans in Dubai are Amlak, Tamweel, HSBC, Lloyds, MashreqBank, RAKBANK, National Bank of Dubai, United National Bank, Arab Bank, Abu Dhabi Commercial Bank, Standard Chartered Bank etc. |
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| 8. How do Banks offer mortgages for property in Dubai? |
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| The banks offer loans for properties where construction is already underway or where it is still in the planning stage. Of course, the rates and terms differ for different banks. Also one can avail loans from their home countries for investing in real estate in Dubai if one owns property in their respective countries which is used as collateral for the loan granted. |
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| 9. What is meant by freehold property and leasehold property? |
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| Freehold property means ownership of the whole building one is buying for an infinite period of time. Leasehold is common in many countries for high-rise property. Leasehold grants the duties and obligations of the landlord or freeholder to maintain the whole property in pristine condition. |
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| 10. What is better freehold properties/leasehold properties? |
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| It is better to opt for leasehold properties when one is buying apartments in high rise buildings because the freehold property is not easy to implement when there is more than one tenant in the building. The granted lease period would range anywhere from 99 years to 125 years. |
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| 11. Is it good to get a pre-approved mortgage? |
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| When one is investing in Dubai in a property/real estate, it is best to apply for a pre-approved mortgage. Then Banks can work out as to how much amount a person is eligible for and the final or actual amount that they would lend. It would also depend on the type of the property, its total cost, location and the time taken for completion of the project. If a bank or lending institution does not agree on a certain loan amount, one is free to enquire from other banks. If a property is pre-approved then it is considered final as there will be no change in the amount guaranteed and one can go in for what one needs or can afford. |
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| 12. Do I have to pay tax on Dubai property as a foreigner? |
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| Dubai is a tax free haven. There are no taxes levied be it on income or property. So even if one is an expatriate or a foreigner, there are simply no kinds of taxes for property bought or sold in Dubai. |
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| 13. Which areas are the best in terms of investment in Dubai? |
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| There is not one area that can be referred to or pointed out for real estate investment in Dubai. This is because the city is uniformly growing and all areas are being developed. For instance, the projects being constructed on Ajman, the islands of Palm Jumeirah or Palm Jebel Ali are all exclusive properties worth investing in. Similar is the case with the Dubai Waterfront area or in the International cities. The final decision in real estate investment definitely lies on the investor after they consider their requirements, cost, location and other important factors. |
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| 14.How has Dubai emerged as an investors' dream? |
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| For an investor in any area like real estate, or a business, Dubai is definitely worth investing. The real estate sector is recording a booming growth and development. With more and more expansion plans in the offing, investors are cashing in on this and investing in real estate developments that are coming up in different parts of Dubai. For good and justifiable real estate returns, Dubai is seemingly a hot favorite for people from all over the world. The key factors for Dubai turning into an investors’ paradise are the prices, location, amenities, interest rates and nil taxes. |
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