Buyers Guide - Dubai
Why Buy in Dubai?
Flying to Dubai is easier than ever, with a worldwide selection of airlines such as Saudi Arabian Airlines, Emirates and BA. Direct flights from the UK take around 8 hours. Property prices look cheap by International standards, and rental yields are still high in Dubai. There is a big change in the city's geography underway with huge plans for the future. What is the fringe of Dubai today, the Dubai Marina, will be uptown Dubai of tomorrow. Thus property values will follow this curve upwards, as people relocate to the new "Centre".
Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a 20-year track record of strong economic growth and will continue to attract foreign and regional inward investment for many years to come.
Fees and taxes
- For new-builds expect land registration fees of approx. 2% and a years maintenance charges up front.
- If you decide to apply for residency, allow for approx £1,500 as this will cover three years.
- If buying a re-sale property all the charges of a new-build apply but in addition you will have to pay a 1-2% transfer fee, this depends whether the property is complete.
- Agents fees are between 2-5%.
- Although a lawyer is not a legal obligation it is recommended to have one.
The Buying Process
Buying in Dubai is going through a period of change. Thanks to a government announcement earlier this year it means that for the first time foreigners will be allowed to own Freehold property in Dubai. Previously, foreigners have only been allowed to buy on a leasehold basis and were not able to buy land. However, it is not yet clear how or when this new law will be put into practice.
Buying form an off-build plan the buyer reserves a unit and will pay an initial deposit of 10%. The remaining balance is paid in stages depending on the developers request but should be agreed at the start of the deal.
For resale property, once you have found a property a holding deposit is paid to hold the property until such time as the balance is available and the completion can take place.
Although Dubai is tax-free you may still be required to pay UK tax - it is therefore advisable to get professional tax advice to take you through the steps so that you know exactly what your tax position is.
Health
The standard of healthcare in Dubai is generally very good. Hoever the emergency services are not as efficient as the UK citizens would be used to back home. Those who require specialised treatments will have to travel outside of the Emirates. Foriegners can use public hospitals provided they carry a valid health card from the UAE Ministry of Health, but many will opt to go private.
Property Costs
1 Bed Apartment - £130,000
2 Bed Apartment - £190,000
3 Bed Villa - £300,000
4 Bed Villa - £385,000
Visa / Residency Issues
Anyone can stay in Dubai for upto 30 days without the need for a Visa providing you are in possession of a valid British Passport. This can often be extended up to 90 days upon request. If owning a property this entitles you to become a Dubai resident but this is not compulsary.
Useful Links
www.unitedarabemirates.embassyhomepage.com
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