INVESTING IN FREEHOLD
REAL ESTATE IN Dubai
ABOUT FREEHOLD PROPERTIES
BENEFITS OF PURCHASING A FREEHOLD PROPERTY IN DUBAI
PROCESS OF BUYING AN OFF-PLAN PROPERTY
Dubai Land Department property transfer fee is 4% of the property sale price (in form of Manager’s Cheque, No Cash) + Dh 580 Admin Fee
(as per payment plan table)
(upon completion of project)
– Original Passports and Passport Copies with Visa page
– Emirates ID for UAE resident
INVESTING IN OFF-PLAN PROPERTIES THROUGH MORTGAGE
Off-plan finance in Dubai gained popularity from investors when recent changes in the UAE has been implemented that further welcome non-residents to invest in Dubai real estate with readily finance options available from various lenders in the country.
Under the UAE Mortgage Cap Law, foreign investors can borrow up to 50% loan to value ratio on the unit price of an off-plan property, while the rest of the amount will have to be paid by the investor along with the associated fees on the mortgage process.
As a form of illustration, for an investment of a 1 bedroom apartment in Belgravia Square amounting to AED 805,828 with payment plan of 50% upon completion, the below are the expected cost to be paid by the bank and the investor.
Total Value of the Property: AED 805,828
Maximum Loan Value paid by the bank (50%): AED 402,914
Cash Fund paid by investor: AED 402,914
Land Department Registration Fees (4% of the unit price): AED 32,233
Mortgage Registration Fee (0.25% of the loan amount): AED 1,007.29
Note that under the law, 50% finance can only be done once the buyer has paid at least 50% of the property price. In case of investing with Ellington Properties, our payment plan platforms are design to help our customers get their ready homes without dealing with insolvency. The 50% payment are divided into installment milestones that can solely be handled by the investor in the whole duration of the property construction, while the 50% remaining balance will have to pe paid after completion of the property and can be paid through mortgage, which means the mortgage will start once the property is ready and started to earn for rental income.