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 Why buy a property
in Dubai?
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Long-term residents should be considering
buying to replace rental payments. Even if your
home is worth a fraction of what you paid for it
after 10 years, this would still be a huge
improvement on the negative return of
renting.
• There is a big
change in the city's geography underway. 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 uptown.
• Demand for freehold
property in Dubai is much higher than most
people can comprehend. Certainly an economy
growing at 10% plus a year has a dynamic of its
own that reflects a huge demand for
accommodation.
• Comparatively
property is cheap. Dubai villas cost around
$1,000 per square metre. London, at the other
end of sells apartments in London Docklands at
$5,000 per square meter.
• Any property market is
going to have its ups and downs, and Dubai will
be no different. All the same, Dubai has a habit
of frustrating those who wait for bargains.
• Dubai is in
the process of creating an international
property market from scratch. As a result buyers
are being be given an exceptionally good deal to
encourage them to be pioneers
• 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.
Overseas Investors -
Overseas investors can buy property
freehold on specific developments as well as on
a 99 year leasehold basis.
Mortgage Facilities available -
There are literally thousands of
mortgage options. In the United Arab Emirates,
however, the choice of lenders is not as
widespread and the options not as attractive as
those found internationally. At present,
typically you can borrow at 6.5% in Dirhams for
the various property developments that are
regularly advertised in the local press. Finance
can be arranged through overseas lenders if you
have assets overseas too. A number of property
investors with assets overseas have taken
advantage of favourable international interest
rates.
Need to get
Insurance? - Most lenders will require
some form of protection for the loan. Banks on
the whole do not like repossessing property and
would prefer the loan to be repaid from an
insurance policy should a serious event occur.
Seeking the right insurance is key since it
comes in many forms. Get the right advice to
determine which one is right for
you.
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Why
Buy in Dubai ?