Sambi

Hello,

I'm thinking of buy a villa in Dubai, but I'd like to gather more info with regards to foreigners ownerships of real estate there.

Are foreigners required to pay all the amount upfront, or like I heard elsewhere, there are down-payments percentages out of the total amount, to be paid upfront.. then the rest is paid as monthly installments?

If so, what are the requirements and does it require employment in the UAE (residency of course)?

Thanks in advance!

co durham boy

Can i ask why would you want to buy in Dubai ?

Millhouse

don't do it.... but if you are hell bent on the idea then buy a ready made one not off-plan. You can also mortgage them if you are feeling really brave.

Sambi

errrr... because I may be moving there for a long time. Inputs appreciated.

@EmiratesMillhouse...

Why not do it, if you don't mind explaining? Yes, I actually want a ready made one.

Thanks.

soukie

This is a wind up!

shiva

go put all your money in a big pile in your garden, pour over petrol and light with a match.

congratulations you just simulated buying a house in dubai, except this way it cost you less and caused less of a headache oh and the legality of setting fire to your own money is well established unlike buying anything in the UAE

Millhouse

Ok... I will take this on face value as I'm bored and waiting for the kettle to boil.

Let's assume that you buy in somewhere like the springs, meadows, ranches or lakes (which are probably where you will end up).

1) Build quality on villas has proven to be pretty poor - do not think they will be here in 20 years or even 10 for that matter.
2) Maintenance costs are high and services charges are opaque. For example these areas have lots of greenery and fake lakes. Water is needed to maintain all of this and we live in a desert.

Water is expensive (and currently subsidised) - over the long term these costs will rocket - all of which will be passed on to you. Or worse still, someone will wake up see it's pointless to run a USD 2bn desalination plant (costs around 700m USD per year to run) just to water the Emirates Living Communities and turn it off. They will be brown and dead in 2 weeks.

3) Prices are still falling
4) As certain as you think your job is, it probably won't be. If you lose it you are out - owing a house doesn't give residency.
5) Rents are falling - you may well find that it is cheaper to rent rather than pay the mortgage interest and maintenance costs
6) The freehold laws are untested.
7) The market is dead ... it is unlikely you will be able to sell it on if you want to and don't think you will just be able to rent it out... there are a glut of these things and rents barely cover costs.
8) If you mortgage it (which would have to be done through a local bank) then it will be subject to Shiite Law... good luck.
9) Service charge defaulters... the upkeep costs of the communities is so high that owners are defaulting on their service charges (not one or 2, but 50% of them). Those that do pay will have to pick this up... or they will just cut the services.

Despite all of the above a part of me sometimes thinks it's better to buy than rent as it will pay for itself in 10 years - if there is value at the end then great, if not, who cares. Then I wake up and remember that due to the service charges, hidden costs and general urban decay that will happen it will probably take 25 years to pay back (if at all) and the thing won't be there.

The Dean

"Sambi"??

No............. couldn't be..............

Sambi

Thanks for the info. Though I've heard and read that the quality is Great. Maybe only for other residentials but not villas.


Well, this is what I fear.. lol but it has also been speculated like many years ago, and yet, the guy seems to want to stick to his vision.

I don't think running a 2bn USD desalination plant that costs around 700m USD per year to run, is an issue for them. Although, it's still too much.

Good point. Only thing that gives residency is getting a job? No other categories?

It is always cheaper and better to buy (over the long term). You made me doubt getting one there though. If I did, I'd probably pay the full amount with no mortgage or interest to be an issue.

How so? They've been implemented since 2002.

hmmmm... good point. However, I wasn't planning to sell anytime soon. But should ponder on this for a while.

Do you mean Shariia Law, where there is no interest?

Wow! is it that bad? Do you happen to live or have lived there by any chance?

Exactly my thinking.
K.... will look into it more. Thanks for your inputs!

Sambi

couldn't be what??

shiva

you're going to get eaten alive.

alfrombarking

I doubt that

BurpusMe

2002 was the year to buy in Dubai. Show's over.

Blue Cat

Thanks for the info. Though I've heard and read that the quality is Great. Maybe only for other residentials but not villas.

I am guessing either a developer told you this or a vendor who is trying to offload?

lionheart

You obviously need to do more research (and I don't mean on here) especially with regard to UAE residency. I have visited many poorly constructed villas in the course of my work. On average, they have a life span of no more than 25 years, if you are lucky. It's not only the shoddy workmanship and inferior quality materials but also the oppressive summer climate. Do yourself a favour and look elsewhere to buy. They say that Turkey and Eastern Europe are good value right now.