Ahmed Juma is a local UAE businessman and the owner of Emirates-Ads Classifieds, an internet portal with extensive listings for Dubai property, jobs, vehicles, and items for sale in the United Arab Emirates.
Dubai has become an international property hotspot, with great architectural developments and ambitious projects rising up seemingly overnight. With the market still young and demand exceeding supply, the time is ripe for foreigners to invest in this vibrant, captivating city.
In March 2006 the Freehold Law was passed allowing foreigners either 99 year leasehold or freehold ownership of land in designated areas. Freehold or leasehold allows the foreign investor many advantages. Owners are able to sell or rent out the property if they so desire. Investment potential is high, with a great demand for short-term rentals and yields around 10 percent. Dubai does not levy taxes on income, including that obtained from renting property. In addition there is no Capital Gains Tax. With Dubai's population expected to double within the next five years causing the rental demand to increase, a property purchased for the purpose of leasing can be seen as a long term income-generating asset. Owners are not required to live in the UAE, but must visit the country briefly once every six months. There are several local and international property management companies, including Colliers International, Cluttons, Asteco, and JG Property Management, who can look after the property when the owners are away. Properties can also be passed on as inheritance if specific procedures are followed. Ownership of freehold property also entitles the first named owner to a 3 year renewable residence visa. (This visa does not permit the holder to take up work in the country.) The most popular Dubai property developments are the Springs, Dubai Marina, Emirates Hills, the Meadows, and Arabian Ranches. Other up and coming areas include Business Bay, the Palms (Palm Jumeirah, Palm Deira, Palm Jebel Ali), and Jumeirah Beach Residence.
Investing in Dubai's dynamic and fast moving market is quite simple. The only paper required is a relatively straightforward sales agreement. If necessary, foreigners can apply for financing. The two main lenders in Dubai, specializing in real estate mortgages, are Tamweel and Amlak. When buying property, it is advisable to use a lawyer and make sure a formal contract is signed, especially if purchasing on the secondary market. It is possible and quite common to purchase directly from the developer (such as Emaar or Nakheel) who may charge a transfer fee of between 1-3%. It is typical to have to provide a down payment, plus installments, with the final installment due upon completion or handover of the property. Upon completion, the property should be registered with the Dubai Lands Department. There is a land registry fee equal to 1.5% of the purchase price of the property. Owners should also expect to pay a yearly property maintenance fee which covers such things as any necessary plumbing or electrical repairs, cleanliness of the site, and security.
Buying a home overseas is a major decision. It is essential to research all aspects of a potential investment and deal only with reputable real estate agents since there is no formal structured purchase process in Dubai. Well-known real estate agents with good reputations in Dubai include Better Homes, GoWealthy, Re-Max, and Landmark Properties. Dubai's property market is likely to continue to flourish for the foreseeable future. Dubai is a thriving international destination offering a high standard of living, a tax-free lifestyle, and a safe and secure cosmopolitan community making it the perfect place to invest.
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my name is Mr Bill Johnson a business man,my business is in crude oil trading and services. My Company is registered in united kingdom, Investment in united kingdom is not an option and very risky! The economy is in very bad shape, and the political climate is very volatile. No one trusts the Banks and therefore businessmen keep their money in cash, in US$ or Euro, hidden away in vault Safes or buried in their homes. This may sound foolish, but in united kingdom, this is conventional wisdom! Any money deposited in Banks is of course converted , the pond. The united kingdom Inflation rate is 20% and rising…It is therefore foolish to keep money in united kingdom banks…AND NOW IT TURNS OUT THAT FOREIGN BANKS ARE NOT SAFE ANYMORE!
It may sound naive that we are planning to entrust US$25 million to a complete stranger, without adequate due diligence. But believe me that we have no choice! No one trusts the Banks in united kingdom… To make matters worse, we are being told in united kingdom that because of the world financial and economic downturn, banks are failing in Europe, Asia, and even in America! The word from the street is that if the world economic giants in Europe, Asia, and America are now in trouble, many Countries will not survive! Already, inflation is climbing every day, and every body has been advised to withdraw their money in the Banks and keep them in cash buried at home (either in US Dollar pond or Euro!) WE DO NOT WANT OUR MONEY IN THE BANK ANYMORE!!!
To be sure, I have no experience in International Properties and I have never acquired one outside united kingdom. But my Lawyer advised me that because of the current world economic recession, International properties/ businesses are the only way to “SAVE” money and possibly make profits down the road, long term!
Again, please keep in mind that this will be an unusual deal in many ways:
1. I am not able to come and inspect the property or properties and companies to be purchased with my US$25 million. I am also aware that not many people agree to come to uk for business… I agree that the current security situation in united kingdom is not the best, and so I would understand if you decline to come to meet me in united kingdom.
2. My Funding (total US$25 million) is in cash, and currently, safely stored in a European Embassy Warehouse. , Diplomats were used both by the Government and business community to move large funds across borders, bypassing the banks. Therefore commercial activities continued on a cash and carry basis. International traders brought in goods and services and received cash… Both the Government and businessmen like me engaged in Crude Oil bunkering (spot sales) on the Gulf and received CASH in exchange for crude oil… I mention this to assure you that my funds are 100% legitimate and not from any criminal sources…Therefore, the good news is that my funds total US$25 million is sitting safely secured in a European Embassy warehouse, since November, 2008.
3. I will therefore request you to arrange the purchase of real estate properties or businesses to the amount of US$21.25 million for me.
4. You will receive US$3.75 million or 15% as commission; this will enable you to act as my Agent or Broker, or if there is a potential conflict of interest, you will engage an Agent / broker for me and he or she will therefore be entitled to the commission of 15% or US$3.75million gratuity. I am aware that this figure is excessive, but I deliberately made this offer in the hope that you will diligently arrange properties / companies acquisition for me worth the US$21.25 million. REAL SWEET PROPERTIES OR BUSINESSES!
5. There is therefore no need to send me properties or businesses for my approval; you will have to make that decision for me. I am not even qualified to make such decisions…
6. Please keep in mind that though the funds are in cash, as soon as you have arranged properties and or companies total US$21.25 million for me, I will arrange, through the Diplomat who took the funds to the European Embassy to wire (from Europe), the US$25 million to your nominated Bank account.
7. As you can see, I wish to keep the transaction as uncomplicated as possible, given that I cannot travel to meet you yet…I understand Your advice and suggestions are welcome but keep in mind that I want things kept as simple as possible. All I want is to invest my money, and guarantee the future of my children and grandchildren, simple.
8. Finally, I need your help. Remember, I this investment is the key that will open the door of freedom for me and my family.
i will be expecting your respond soon
Best regards,
Mr Bill Johnson
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