karlspain

Hi All,

Hoping you can help, i need a lot of advice.

Wife and I are moving to Ajman/Dubai, UAE.
From what i understand i need a company to own the properties
i purchase so my wife can control the company in the event of my death? Help?
I wish to purchase 5 flats, rent them and live from this.
Can i do this and not have to work?

I understand about the free zones and have some info how this works,
I would rather be free and do nothing for a few years however I could one day start a business over there and would be willing to do so if i had to.

Any advice on having a company in Ajman free zone to own property would be great.

Also my wife's father who lives in Kenya passed away this month.
Her mother and daughter are together in Kenya but wish to move to Ajman so my wife and i can join them later.

Any advice on mother and daughter living together in Ajman/Dubai please.
Could they purchase a studio flat, currently they sleep together therefore could buy a studio flat, can they jointly own a studio flat and both get residency easily?

I think they will need to do this through a company?
If they do own a company together and one passes away, what happens??
Can the other freely own and do with as they please with the assets/property? This is the goal.

Thanks

Blue Cat

the laws regarding residency and buying property are a bit vague to be honest with you. Some do give visa's and some don't. To be honest with you I think your idea will fail. Buying in Ajman?? renting 5 out? who to? back to the drawing board I think. Sorry

karlspain

Hi there,

I think to say it will fail is very negative and you have not given any reason.
The visa is not my issue, i will buy a property and get a visa very easily, however the advice i seek is to keep my assets under a company so in the event i die my wife can control these assets so they do not fall under Sharia law and go to the government instead of my wife. It is very simple but requires some work and obviously money.

Or i could go to a free zone, start a company, get my visa through the free zone for myself and my wife as employees which also gives us entry permit, employment card, health card, medical and residence visa for 3 years.

I will buy a flat for myself then slowly buy some off plan to rent eventually, even if unlet for a short period this will not affect my finances a great deal and as a businessman i am versatile and could try to start a business or get a half decent job due to my experience.

Failing is not an option, i like taking risks and i dont see the big deal, i think i am in a lucky position. I understand it will take time, i am not looking to buy flats in an instant with tenants to go. However on my visit i found many people wanting cheap accomodation, floods of people share to keep the costs down, money is very secure as you usually get 6/12 months rent in advance. I say let them share and pay the rent, the laws are such that it is very rare to have a problem with a tenant, they could end up in jail, unemployed and out of the country very quickly.
AJman is very cheap compared to Dubai, i am looking to buy cheap studios / 1 beds.

I think that eventually it will be easier to work and start up a business in the UAE due to the current economic crisis in the US & UK. They have not built the UAE to fail either and can offer incentives and fill up the country very easily. It is a tax free country currently which for any entrepreneur should take advantage of. When i go my flat will be paid for and a few off plan will be waiting, i wont need to much money to live, i have put money aside for a rainy day, cars and some living or to start a business so i leave my options open.

It's good to hear all sides of the story, so if you think it will fail i need reasons.

What is more of a concern is my wifes sister and mother, as 2 women alone without a man means in the event of death they could lose everything to Sharia law, i need to avoid this and am thinking they should do as i intend and start a company. This means work for them which they will need me to help as i have some knowledge on how to set up a company in the uae free zones.

MrsHaps

Have you done the trip Ajman to Dubai and Dubai to Ajman in the normal working day..... the 2+ hours of traffic is a big turn off when thinking about living in Ajman!

Also there are not a great deal of westerners living in Ajman.... So what kind of people are you aiming to attract to rent these places out.

There is a hell of a lot of accommodation now that is not rented... why do you think what you are going to do will work....?

banter64

[QUOTE=MrsHaps;7211122]Have you done the trip Ajman to Dubai and Dubai to Ajman in the normal working day..... the 2+ hours of traffic is a big turn off when thinking about living in Ajman!

QUOTE]

45 mins at the moment not 2 hours

karlspain

Hi,

I think in time this will also improve, yes i did hire a car and drive around a lot with a friend who knows the areas, although the major roads are simple and yes traffic is bad, i was in Sharjah and saw the way people park at night and the traffic during the day but for me this is not an issue. Petrol is cheaper than here and i wont need to commute anyway. For people who must commute for convenience Ajman is great as it is cheap. Within a few years roads etc will improve. I spent many years driving in London and found Dubai similar, millions do it in London and as the UAE improves public transport this will be possible in Dubai.

If i did have to commute i would but cannot see this as a major issue for me.

I am sure i can find tennants who work in Ajman due to the construction happening, other jobs being created, even if this slows i'm confident i can find a few tenants that would not have to commute to work.

I think that if I lived in Ajman, i'd go to dubai some evenings, at 8/9pm it is very warm and lively around Dubai till quite late, also very safe.

Thanks for the advice,
...could do with more

I'm interested mainly in using a company in a uae freezone, possibly Ajman and if my wife and I jointly own the business but one dies can the other easily take control of the assets avoiding Sharia law regarding inheritance.
I understand in my case in UAE with no company and they dont honor wills my assets will go to my eldest son (i currently have no children but plan to soon) What is the point of my property going to a possibly very young child, my wife would need this control to take care of our children. Under a company i believe my wife will retain control of our assets.

I think for my case it's quite simple but harder for my wifes mother and sister whom wish to live there together, can they both get visas if they share a studio or does it have to be say a one bed or two bed?
My intention is to have a company in UAE anyway so i can trade at any time if need be. The costs associated are fairly cheap, maybe a few thousand pounds a year with a small office, less without.

They have no need for a company in the UAE as this means more paper work and more responsibility which they could really do without for now, however i am happy to help them as i will learn also. However i think if they purchase say 3 flats and one dies the other would get nothing or lose half according to Sharia law. So i think they will need a company have have little choice.

Currently being single women, should one pass away the assets will go to the government or so this is what i understand. If however they did the same and used a company which owns the assets and both were partners/directors then can the other take control of the assets easily - this is what i understand, any more than can be added whould be great info.

Advice is always appreciated

Thanks

Ethos83

You have no idea what the economic situation is like in Dubai at the moment, do you?

Ajman is cheap, but as Dubai declines, Ajman will too.

If you're willing to hold on to the properties as long-term investments, say at least ten years, then perhaps there's some sense in your vision. But as of now, there's only one direction for Dubai's population growth and that's downwards. 90,000 apartment units are scheduled to be delivered to the market in Dubai in 2009, yet there's a steady and growing flood of expats leaving the country. Apartment/villa rents have declined 20% in just three months.

It's not illegal for your mother and sister in law to share a flat. If you have issues about a visa, just have them do a visa run every six months or so, which is as easy as driving to the Oman border in Musandam then popping right back into the UAE.

diablo

if I were you and had the money to buy ... I'd buy left and right.

Perhaps you can wait for July / August this year. I see people saying here that the prices will go to 2003 level. If that's the case a 4 bedroom plus maid's in JBR (Dubai) will be around AED 750,000; an apartment in Greens about AED 200,000. Palm Jumeirah ... Garden Villa of 5000sqft - AED 2,800,000. I'd love to see that

But I am not sure about Ajman; maybe you're right ... I'd rather go for Abu Dhabi / Dubai ... but who knows. In any case buy ... the money may not be coming back immediately ... but it WILL come.

karlspain

Hi Diablo,

Yes i certainly can wait and agree the money may not come quick but will be there one day. I am looking at cheap studios / one beds. I have seen some plans of a large studio which could easily have a wall put in to convert it to a one bed of 500 sq ft. Not big but cheap accomodation, not sure if this will be allowed, if not maybe some type of partition. Will have to check this later.

For myself and wifey i could get a 3/4 bed very cheap in ajman compared to dubai. If prices do drop in dubai significantly i would consider a cheap 3/4 bed there, maybe an apartment on a palm/world.

Really need help with using a company to purchase the properties and the in's and out's of how the assets are controlled in the event of death:
my wife and I - living together
mother and daughter - living together

Sad subject to discuss but needs must.

Thanks again

Blue Cat

I really do not understand your desperation to come and live in Ajman? are you aware that the majority of projects have been put on hold in this area? and that even if they are built they will more than like not have an electricity supply?

If you own the Company it doesn't give your wife automatic rights to the property. As for the Mother and Daughter sharing - what passport do they hold? not a British on I am guessing?

Lastly you need legal advice, I think the lack of replies to this thread shows people really don't think your idea is a good one.

Ian the Pilot

How many of the Ajman developments, the off plans, which used to sell even before the plans, have actually been built, and accupied.

The current trend in Ajman is to STOP developers from selling more property, as there is NO elecricity to support the development.
This stared to apply 6 months ago, much before the so called "Troubles".

As to 45 mins drive from Ajman to Dubai, yes it can take 45 mins, but it can also take 2 hours. Quess whih is more common.

I do not believe the prices will drop to 2003 levels, but there will be a drop.

The "free press", which has never been "free" in the normal use of the word, have consistantly tried to point this out, but still the rairified atmosphere has prohibited clear thinking.


Lastly I believe that any society that has a "free" press has suceeded, any attempt to limit the extent of published information, is always to the detrement of the counrty and thus the economy.

I love living and working in the uAE, and hope that the crisis does pass us by with minimal effect, we must all be realists.

the Pilot

Blue Cat

good post Ian, alot of people have lost money by investing in Ajman, there was a huge development which fell through. The place is a tip anyway. Was there at the weekend and I didn't see any finished buildings at all.

Ian the Pilot

Thanks CAT:

I had the option of buying a town house, further north, which had no elec, but promised in one month. I need to move in very soon, so declined.
It was over one year, before on site generator was available, still no mains elec.

I am very happy in my second hand house, with all services.

I would suggest that NO one buys as an investment. The quality of build, and the basic sand foundations, would suggest an economic life of 15 years.....
Buy to live in, but base your costs on 10 to 15 years.

the Pilot.

Blue Cat

if we had any dosh I would like to buy at Al Hamra, a little holiday apartment would suit us just fine

Ian the Pilot

I would wait a few more months, and then look closer.


KIT


the Pilot