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Buying a property in Dubai could come out to be beneficial for you if you are aware of the future prospect of property market in Dubai. The property and real estate market in Dubai has shown improvement in the Gross Domestic Product that it has generated. Renting a property in Dubai is very attractive opportunity nowadays, but in terms of purchasing a property for investment it may be a bit risky as the property market is in the process of stabilizing itself.
You have got it exactly right, simple give a deposit agreeable to both the parties, normally 10% of the property value and then sign an MOU.
You will present this MOU to your bank with all the other required documents (as instructed by the bank) and they will issue a cheque for the property seller which normally takes sometime. Once the cheque has been issued, you can go to the land department and initiate a change of ownership request (remember to demand the No Objection Certificate from the developer). At this time you can handover the cheque to the seller after the request has been submitted. Your ownership documents will be handed over to you from the land department within a week or two at most.
Thank you for your reply. It was very informative. However, I have a question. If you say that the bank cheque can be handed over to the seller at the Land Dept; don't we get any written letter or agreement signed from the seller that he has received the cheque for the sale of his property on that day?
Also, I have a question for Faisal. You said that the prices for real estate is now stabilized. Is it going to stay the same till the begining of next year. Was it a good idea to purchase now or wait for a few months more.
Regarding your query about receiving a letter or a receipt, when you apply for the change of ownership at the land department, they will issue a legal receipt that the change has been initiated and the new ownership documents will be handed over to you in time. This document will act as your proof of purchase.
Furthermore the buyer and seller cannot simply visit the land department and initiate the change of ownership request, you have to accompanied by a RERA registered agent who has brokered the deal and will earn commission in the process.
The agent will pretty much handle everything at the department and you can always ask the agent to prepare receipts for the payments made, however the only legal document showing that the property has exchange hands and can be held as evidence in court will be issued by the land department.
Hope this clarifies your first part of the query.
Regarding property trends, many posts on this forum have been made regarding this matter and I would recommend searching for a few and you will get your answer. Very quickly, market is stabilizing now and may remain stagnant for a few months or even for a year before we start seeing an upward trend, however rental yield is still very high (almost 10% or more) so the market is still an investors market as long as you are targeting completed properties. Additionally, prices have not been this low in the past many years so chances of going wrong with your investment are next to nothing.
Hope this helps and if you have any other queries then please respond in this post rather than starting a new one.
All the best and wishing you a great investment.
1320 days ago
Name:Allwyn Rank:Beginner Total posts:
Name:Faisal Rank:Intermediate Total posts:
Name:Zeeshan Khan Rank:Senior Authority Total posts: