| Here is a list of some common asked questions
and their respective replies from Real Estate experts
in Dubai. |
| Is
it possible to get mortgages for property in Dubai? |
| Yes. Amlak, Tamweel, HSBC,
Lloyds, Mashreq Bank, RAKbank, National Bank of Dubai,
United National Bank, Abu Dhabi Commercial Bank 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 residents. You can also get mortgages internationally
for property in Dubai. HSBC in the UK lends an asset based
mortgage. |
| |
|
| How do mortgages
in Dubai differ from those abroad? |
| Firstly, 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. |
| |
|
| 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's
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? |
| Yes. But your
contract should 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. |
