Buying a property in Dubai
Any investor, overseas or resident, can purchase in Dubai´s luxury property market. There is really no difference in buying a property in Dubai,compared with most other long-established property markets.
In general, a deposit representing 10% of the buying price is required at the contract-signing stage for all new development properties. This is followed by what are known as stage payments that are made at regular intervals through to completion. Buyers do not need a local bank account to arrange purchases.
The first thing to decide when buying a property in Dubai is whether to pay cash or obtain mortgage finance. Non-Emirates are allowed to finance their property in Dubai over any period, from 10 to 25 years. Several specialist mortgage companies and local banks now offer loan packages.
There are currently no government taxes of any kind when purchasing a property in Dubai. Nor is there a Capital Gains Tax on selling. When the Dubai Lands Department registers title, buyers will pay a 1.5% tax based on the purchase price of the property. If they have a mortgage, they will pay 0.25% of the value of the loan.
If you live in Dubai, or are able to visit, you can take the opportunity to take in some of the developers' presentation centers allowing you to view scale models of the new communities, review the property brochures and ask questions you may have.
In general, the Dubai Government issues residence visas to new property-owners and their immediate family. These will need to be renewed every three years as per the latest immigration regulations.
One should never undertake any property purchase decision lightly, as there is far too much at stake!
Whether you are buying in Dubai or anywhere else in the world, do your research, making sure that you have sufficient information, from a broad cross-section of sources, to help you make the right decision for your unique needs. Get advice from mortgage lenders, legal firms, insurers and other service providers.