Dubai Property Buying Process
We believe that prices on ‘ready’ property are at their lowest and are likely to rise over next few years. Everyone has a view on property prices but no-one can be certain - any property could fall in price as well as rise. However, we believe prices will go up in the next few years as there is very little new property being built.
Developers in UAE were dependent on ‘off-plan’ purchases to fund their buildings. Off-plan market is now disappeared and there are no such buyers, so there will be no new developments for many years - thus property shortages are very likely!
To further reduce risk, we only acquire READY properties with high demand and good rental yields in developed areas. Because we do this, we can offer a rental guarantee to reduce risk related to this.
We strongly advice you NOT to purchase ‘off-plan’ property which is normally sold with a payment plan prior to its build. Our experience is that the risks are high with this sort of purchase although good payment plans are offered - we do not sell it anymore but we continue to support existing customers who may have purchased off-plan property from developers with our help during 2005 to 2009. Many such customers whose properties have been completed have done well despite the property crash. However, others have been affected by cancelled or stalled developments, or purchased at the peak of the market and prices have fallen since then. Many plan to hold on to their properties as they see growth in the future.
Omnibus consultants will advise you on the best property to purchase depending on your requirements such as:
For Investment or for ‘Own Use’
You may wish to purchase for Investment and benefit from capital gains and rental income. Alternatively, the purchase may be for your own needs for living or holiday accommodation. Majority of Nigerian customers are currently purchasing primarily for investment.
Many customers do it for both reasons - initially they wish to rent out and use it later themselves in a few years. In such a case we advise customer to buy the best property for investment right now i.e. the one that will be easy to rent out and has good capital growth potential. Later, when they move to Dubai or need to use their property, they should sell their investment property and buy a property in an area which is suitable for their particular needs (e.g. next to the sea, or the golf course, or the Shopping Mall). This is the best way to grow their funds and end up with what they eventually want.
Thus a buyer may purchase 2 Studios and a 1 bedroom apartment – take advantage of higher rent and better growth and then resell to buy a Villa in a few years time.
Apartments or Villas
Most residential property being purchased is in the form of apartments in residential tower or ‘low rise’ developments. If you are purchasing primarily for rental and need easy re-sale then it is best to buy an apartment. Low rise apartments tend to be very popular amongst tenants.
Size of Property
Apartments types tend to be:- Single Studio type, 1 bedroom (most apartments) or multi-bedroom. The most popular are studio or 1 bedroom apartments and these are the ones recommended for investment. Villas tend to be of two types. The smaller villas are called townhouses and may be like a small terrace with front parking and back garden. These normally have 1, 2 or 3 bedrooms. The larger villas tend to be detached and have 3, 4, 5 or more bedrooms. Sizes are measured in m2 or sq feet and include the balcony area. Areas for apartments are normally stated as gross area which can be 20% more than the net/visible floor area. Typical areas are 500 sq ft for Studio, 800 sq ft for 1-bed and 1200 sq ft for 2 bed apartments.
Location in Dubai
There are many locations within Dubai which have various strengths and weaknesses. Property near the airport and near the office areas is easier to rent out than near the Marina area, which tends to be seasonal. Most of our customers rely on Openshore to recommend the best development and location to ensure maximal investment growth and security.
Simple Steps to Property Purchase
STEP 1
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Select the Property
Property Type – 3 main choices: Studio Apartment, 1-bed Apartment, Multi-Bedroom Apartment or Villa
Choose one of the 3 popular Sizes then you will be given a price for the Property, location and specification. A specific property will not be allocated to you at this stage. This gives us the opportunity to negotiate and try and get a better deal on your behalf. The price you pay will be as agreed or even better. We will aim to get a better and larger apartment for the same price. In the current market this is the best way for us to get the best apartments for our customers.
The total price we quote will include Agency Fees (normally 5%) and all property transfer costs (normally about 5%) – so there are no hidden surprises.
STEP2
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Make a Reservation
Once you have selected a property, you sign a Reservation Agreement. To get the best deal e.g. a larger apartment for the same price, you may need to give us flexibility on the specific apartment.
STEP 3
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Deposit via GTN Ventures Account
PLEASE KINDLY MAKE ALL CHEQUES PAYABLE TO
EITHER GTN VENTURES.
BANK DEPOSITS CAN ALSO BE MADE TO:
BANK NAME: STERLING
ACCOUNT NAME: GTN VENTURES
ACCOUNT NUMBER: 2069751730
PLEASE KINDLY CALL: 08023164822 OR 07068431124
TO CONFIRM RECEIPT OF PAYMENT
Initial deposit is 50% of property price. This comes off the final price and is not an extra payment. Funds belong to the customer within the GTN Ventures account until paid to the seller at point of transfer of property to your name in dubai.
STEP 4
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Sign Sales and Purchase Agreement
You will be sent the final version of the ‘Agreement To Purchase’ or sometime called MOU (Memorandum of Understanding) to sign. This an agreement between the buyer, the seller and Omnibus that clearly spells out the intended purchase and includes the details of the transactions, all fees payable and timeline. The agency and seller will also sign this agreement. There will be a customer instruction sheet explaining the process. You do not need to visit Dubai to sign this agreement. You will also need to make arrangements to pay the remaining 50% prior to property transfer date.
STEP 5
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Property Transfer
At some point (normally within 30 to 60 days of signing the Purchase Agreement) you will need to visit Dubai and we will take you to the Dubai Lands department. The property can then be transferred to your name and you will receive the Title Deeds on the same day. Property transfer can only happen after all of the funds have been paid. Most customers use the GTN Ventures Account to make the 50% of the remaining payment prior to transfer. This process can be done using a short trip and some of our customers have done it over one weekend. When you are in Dubai we will guide you through this process and help you at the Dubai Lands department. We will also help you open a bank account.
You do not need to visit Dubai to purchase the property, we can buy on your behalf using a Power of Attorney. We can transfer the property to your name and get the Property Deeds to you.
STEP 6
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Get Investment Returns – Rental Income & Capital Growth
Inflation is eroding value of any cash funds you may have. Such an investment in Dubai (at its lowest price point) makes sense. Rental income of 8% and expected capital growth with possible doubling of property value over next 5 years.
The only other costs you may have are service charges (normally about £1 per sq ft) and any agency fees if you decide to use Omnibus to fully manage your property.
