Is it possible to get mortgages for property in Dubai?
Yes. Amlak Finance, Tamweel, HSBC, Lloyds, Mashreq Bank, RAK Bank, National Bank of Dubai, United National Bank, Abu Dhabi Commercial Bank, Noor Islamic Bank, Mawarid Finance and Standard Chartered Bank all lend on Dubai property, both on and off-plan. Each one has different rates and terms. Some only lend to individuals having valid UAE residence visas. You can also get mortgages internationally for property in Dubai. HSBC in the UK lends an asset based mortgage. If you are interested of having mortgage assistance from any of KM Properties finance partners, please call 800567 and speak to a Property or Leasing Consultant.
How do mortgages in Dubai differ from those abroad?
Primarily, lenders do not lend on every project currently being built. Often buildings are sold that no one lends on at all (though, given the favorable payment structure system in Dubai, that doesn't mean they aren't worth buying). On the other hand it is possible to get a mortgage on many examples of off plan property here, unlike most places in the world.
How do local finance houses assess mortgages?
Usually on your monthly income, less expenses, and then divided by three. This gives the figure they will work from, for each month over the term. They do not base it on how well the asset might perform, nor allows low-loan-to -value (i.e. large down-payment with small loan). This makes it limited. Even if you are earning a seriously good wage, do not assume that a bank - will lend you substantial sums.
Can I get a pre-approved mortgage?
Yes. This is preferable. Most lenders will work out how much they are likely to lend you before you have a specific property in mind. This means you can then go shopping, and find something you know you can afford. Majority customers of KM Properties enjoy this facility because the company has very strong relations with its finance partners.
How much can I borrow?
While resident expatriates can generally borrow between 70% and 80%, non-residents can generally borrow 60% to 70%. It all depends on the lender, and the project they are lending on.
What is a transfer fee?
A transfer fee is payable if you transfer your property to someone else. It is an administrative charge levied by the primary developer.
Do you get a residency visa if you buy a home?
This provision is subject to ongoing Property and Immigration Laws mandated by the governing authorities in Dubai and the United Arab Emirates. In most cases, a residence visa is only guaranteed if your contract specifically state that you are entitled to one. Residence visas are subject to normal immigration regulations. They are renewable every three years, for example. They do not replace a work permit. And if you have a work permit, your residency will come from that.
Do I have to pay tax on Dubai property if I am resident abroad?
Most states expect you to pay tax on assets abroad. In some jurisdictions, however (the UK being one example), it is possible not to pay, by ensuring that rental income or proceeds from the sale of a Dubai property remain offshore. The best way to do this is through an offshore company where you can keep revenue or an offshore deposit account with an international bank which allows you to deposit and transfer funds with a certain amount of privacy.
Will KM Properties assist me in my property investment?
Yes, KM Properties, being a leading and fully-fledged real estate developer in Dubai and UAE with a portfolio of residential, commercial and freehold properties; is strengthening its position as a market leading developer by focusing on the core business of property development locally and internationally to achieve high returns. The company owns a large number of properties in the UAE of exceptional quality and value with a selection of properties that can only be described as deluxe due to the high quality of accommodation, decoration and equipment provided, as well as locations and views. It has several finance partners who are ready to offer attractive and easy financing assistance to its customers.
I am a non-UAE/non-GCC national. Can I buy property in Dubai?
Yes. Expatriates can buy property in Dubai but only in designated areas of Dubai known as free hold property as per the Dubai government’s Freehold Property Law issued on 14th March 2006.
If I buy a property in Dubai, how does the transfer of property rights happen and when?
A simple written contract between the buyer and the developer needs to be signed which talks about the transfer of property rights to the buyer. This purchase agreement will have a clause wherein the developer undertakes the responsibility to transfer the property rights as soon as the property is available. This is a mandatory clause and needs to be checked before signing the agreement. Also this is not notarized and hence the buyer needs to doubly check all the clauses.
If I invest in a free hold property in Dubai, am I entitled to a permanent residence visa or right to work automatically?
No. Dubai government has legalized foreign ownership of property in designated areas but this does not guarantee a permanent residence visa or work to right. However, you can buy property only if you already have a residence permit.
Do I get mortgage support from banks if I decide to buy a property?
Yes. Some local banks or specialist organizations offer mortgage finance to expatriates.
What are payment options for a property purchased?
10% or 20% of the purchase price has to be deposited at the time of purchase. Further installments are paid over an agreed period of construction and differ from one construction company to another.
Is there any fee if I decide to transfer my property to another party?
Yes. You need to pay 2% of the purchase price to the vendor incase of a transfer to a third party. However you can arrange with the third party for transfer of this fee too.
What are the rental procedures in the UAE?
The rental procedures in the UAE are :
Tenancy contracts generally last for a year in the UAE except in Sharjah where they last for three years.
During this period, the landlords cannot increase the rental prices. At the end of the designated period, the rents can increase by a maximum of 15% of the original contract.
A landlord cannot evict a tenant without a just cause within the period of contract.
If a dispute happens between the landlord and the tenant on the rental increase then the municipality’s rent control committee will handle the case for a cost of 400 or 500 dhs. It takes few weeks to months before both parties are summoned to appear before the committee.