mortgage, Author at Capital Zone

Dubai tenant and landlord rights in 2023

Whether you’re a tenant or a landlord, it’s important to know your rights when renting a property. RERA, Dubai’s real estate regulatory agency, have created laws including No. 26 of 2007, No. 33 of 2008, and Decree No. 2 of 2011, which outline the roles and responsibilities of tenants and landlords. To save you time, this handy guide will give you a great introduction to tenant and landlord rights in Dubai in 2023, including: Tenant frequently asked questions How many cheques are usually needed? In Dubai, rent is usually paid in the form of cheques. The number of cheques will be agreed upon between you and the landlord when negotiating the rental. The total rent is then divided by the number of cheques and paid at intervals throughout the rental. The number of cheques typically varies between one and six payments. Landlords typically prefer a lower number of cheques, but your real estate agent will be able to help you negotiate this based upon your circumstances. If paying by one cheque, the total rent will be paid via one payment at the start of the rental. If you were to pay by four cheques, you would give the landlord four different cheques. One for the first day of the tenancy, and three post-dated cheques at 3-month intervals during the tenancy. The Dubai Land Department recently announced plans for tenants to be able to pay via online banking rather than cheques in future, which would move Dubai more in line with many developed economies around the globe. How do you negotiate a better rate? In general, paying via one cheque (a one-off payment for the full amount) will get you the best rental rate. Landlords will often charge a higher rent to tenants wishing to pay with more cheques, so paying with fewer cheques or making a larger initial payment should get you a better deal. Does the landlord have a right to ask for a security deposit? In Dubai, landlords can require tenants to pay a security deposit at the beginning of a tenancy agreement. This is almost always the case, so you should expect this whenever searching for a rental property. The security deposit is typically 5% of the annual rent for an unfurnished property, or 10% of the annual rent for a furnished property. As long as the property is returned to the landlord in good condition at the end of the tenancy, the security deposit should be returned partially or in full to the tenant upon vacating the premises. Who pays for repairs if something within the property breaks during my tenancy? When renting a property, the chances are you’ll experience something breaking or requiring maintenance during your tenancy. In general, maintenance and repairs are the responsibility of the property owner. However, it is very common for tenancy contracts to state that the landlord will only cover major repairs that cost more than a certain amount. For example, the landlord may only cover the cost of repairs if they exceed AED 1,000, with any less expensive repairs being paid for by the tenant. You should therefore be careful to check this in your tenancy contract prior to signing for a rental property. Are there any clauses I can use if I need to break my contract? Whether there are any clauses you can use to break your contract early will depend on the specific terms and conditions of your tenancy contract. You should therefore check if your contract includes an exit or early termination clause. Without this, your landlord might ask for compensation. Some contracts include break clauses where you pay your landlord a certain amount as a penalty for terminating early. If the option to end the contract early is important to you, then you should discuss this with your agent prior to agreeing to a tenancy, to ensure it is negotiated and included in the tenancy agreement. Can my landlord evict me before my tenancy agreement is completed? No, your landlord cannot evict you prior to your tenancy agreement being completed. Your landlord can only ask you to vacate through a 12-month written notice via registered mail or notary public. My landlord wants to increase my rent. How much can they increase it legally? For a comprehensive overview, check out our post: Can my landlord increase my rent in Dubai in 2023? But in short, yes the landlord can increase your rent. But, this can only happen when your tenancy renews (not at any time during the tenancy) and the landlord must give you 90 days’ written notice prior to the renewal date. The landlord can also only increase the rent by a certain amount, which is dictated by the DLD’s Rental Index. I am unable to use the communal areas of my building because my landlord has not paid the service charges. What can I do about this? if your landlord has failed to pay the service charges, then the first step is to contact them to discuss the problem. In the event that they fail to make the payment, you may be able to seek legal recourse. The Dubai Rental Disputes Settlement Centre can be contacted at 600 555 556. It seems that all the rental properties I am interested in are going very quickly. When I put a deposit on a property, how can I be sure nobody will undercut me 24 hours later? The Dubai real estate market moves very quickly, so it’s very normal to enquire about properties only to find that they have already been rented out. Once you find a property that you wish to rent and have negotiated the tenancy, the agent will collect a deposit from you. As soon as your deposit has been received, the property should be reserved for you and removed from the market. However, to be absolutely certain that the rental does not fall through, you should sign a tenancy contract as soon as possible with the landlord to

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Tips for international/overseas investors in Dubai

Due to the global pandemic, Dubai’s property market, like every other market on the globe, faced a setback in 2020. However, following a brief hiatus, it is back on track and aiming for a swift and powerful comeback. This significant rebound is mostly due to new rules and regulations, as well as the return of foreign investors to Dubai as a result of the restart of international flights. As property prices and demand rise, so do the interests of both domestic and foreign real estate investors. This has led to an influx of investors from many countries looking for investment possibilities in Dubai. If you wish to diversify your assets, Dubai’s real estate market offers lucrative opportunities. You can generate a high income in the shortest amount of time without incurring additional expenses to establish your office in a foreign country. Following international real estate investors’ interest in making foreign investments, the government of Dubai introduced freehold property legislation in 2007. This law allows foreigners to acquire Dubai homes with ownership rights. For those worried about investing overseas, Dubai’s Real Estate Regulatory Authority has taken several steps to make Dubai’s real estate sector transparent so that inexperienced investors can take advantage of the following simple tips to make the most of their real estate investments in Dubai. Identify your budget This is quite crucial. When you choose your budget, you are analyzing and deciding on your purchasing power. This will give you the widest possible target range. It is necessary to conduct extensive market research in order to determine what kinds of properties are available for purchase. Home mortgage loans are available to real estate investors in Dubai. This certainly has several advantages that assist in lessening payments over time. Having said that, it is crucial to know that the Central Bank of the UAE has established mortgage ceiling limitations for ex-pats. Purpose of investment Some people acquire homes with the intention of reselling them, while others want to rent them out to generate a passive income. In both circumstances, the criteria for selecting a property are different. For example, if you intend to resell it later, you can choose from off-plan properties in Dubai, which are offered at reduced prices. The disadvantage here is that you will have to wait for the development to be completed before you can earn an ROI. There are several factors to consider when purchasing property to rent out. The property should be located in a desirable neighbourhood for tenants. This implies that it should be well-connected, conveniently accessible, and provide basic amenities to its inhabitants. The objective of the investment heavily influences geographical selection. However, the budget also plays a role here. Choose the right area There are a few neighbourhoods, notably those located outside of the city centre, where you may find reasonably priced houses. They are more suitable if you want to resell them at a higher price. Similarly, some places might provide greater outcomes for people looking to rent out their homes. The key here is to pick a good neighbourhood. It should not be hurried. Rather, take your time and learn about the advantages and disadvantages of the locations you’ve chosen. Take into account future market trends that have the potential to affect the area as well. Deal with certified brokerages Working with a real estate agent to look at houses for sale in Dubai has various advantages. However, only work with certified and licensed brokers or real estate agents. When dealing directly with the seller or property dealer, the same recommendations should be followed. Make certain that the individual with whom you are dealing is authorized to sell the property. You should confirm this before visiting the place in question. Despite the fact that the Dubai property market is regarded as secure for real estate investors, it is nevertheless advised to follow this advice in order to reduce the danger of being scammed. Do your research You cannot thrive in the real estate market, especially in a metropolitan city like Dubai, unless you conduct a thorough study. It is an important part of being a successful real estate investor. The quantity of study necessary for area selection has previously been emphasized. However, there are some more aspects to consider before entering the market. For example, you should be aware of the types of property that are suited for real estate investors. And knowing this necessitates much investigation. Similarly, recognizing market trends necessitates extensive study on the part of the investor prior to making a purchase. Related Articles:1. What to include in your snagging list?2. The Ultimate Guide to Living a Lavish Luxury Lifestyle in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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What type of off-plan property is best for investment in Dubai?

Dubai is one of the world’s fastest-growing cities, with a thriving real estate market that fuels the growth of individuals and companies from all over the world. If you want to invest in off-plan property in Dubai, you must first understand the different types of properties available. In this blog article, we’ll look at the greatest types of off-plan property to buy in Dubai. Apartments When people think of off-plan property investment, they think of apartments. More affordable than villas and townhouses, apartments are some of the most popular investments in Dubai. Not only could you rent it out and receive a good return on investment (ROI), but if you study the market right and choose the best property, you could score something with a great capital appreciation. Some projects that are highly in demand will sell out much faster, and that’s because they offer geat locations, good prices, and often, a flexible payment plan. Villas and Townhouses Another type of off-plan property investment is villas and townhouses in Dubai. Those are a little different than apartments in terms of return on investment, where they target families rather than bachelors and couples. The return on investment will depend on things such as location, amenities, and more, but it will also depend on the plot, location of the unit, and internal layouts. Some nationalities prefer open kitchens to closed ones, some prefer corner units to middle ones. Villas are better for capital appreciation, and their value often increases exponentially after purchase. Unless the villa or townhouse is in bad shape, you will most likely be able to sell it for a good profit. Mixed-use Developments Mixed-use properties and lands are real estate developments that combine two or more different uses, such as residential, commercial, office, retail, and/or hospitality spaces. They are designed to create a sense of community and provide a one-stop shop for residents and visitors, offering the convenience of living, working, and shopping in one place. Mixed-use properties are becoming increasingly popular in urban areas, where space is limited and demand for convenience and accessibility is high. These properties offer investors the potential for high rental yields and capital appreciation in prime locations. They are highly attractive to investors looking for a diversified investment portfolio that can generate steady income and long-term growth. In conclusion, Dubai’s real estate market offers a wide range of off-plan properties that cater to different investor profiles. The best type of off-plan property for investment in Dubai will depend on the investor’s financial goals, risk tolerance, and market research. It’s crucial to conduct thorough due diligence and seek professional advice before making any investment decisions. Investing in off-plan property in Dubai can be highly lucrative, but it requires careful consideration and planning. Related Articles:1. How to quickly sell your property in Dubai2. Home Loan vs. Loan Against Property: All you need to know Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Tips For Getting A Luxury Property Mortgage In Dubai

With a 69% increase in transactions over AED 10m in 2022, Dubai’s luxury property market is booming. If you’re looking to buy a luxury property, whether it’s to live in or as an investment, you may need a mortgage to help finance your purchase. Whilst securing a mortgage for a luxury property can seem daunting, there are steps you can take to make the process smoother and increase your chances of getting approved. Here are 8 tips to help you secure a mortgage for your luxury home in Dubai. Tips For Getting A Luxury Property Mortgage In Dubai 1 – Get your deposit ready Regulations from the UAE Central Bank require ex-pats and non-residents to have a deposit of at least 20% of the purchase price (15% for UAE nationals) when buying a property under AED 5 million. For properties over AED 5 million, this increases to a 30% deposit requirement (25% for UAE nationals), or 35% when purchasing a second or subsequent property. 2 – Prepare your documents To get a luxury property mortgage in Dubai, the bank will need to see a variety of documents from you, so make sure you have these to hand. The most commonly required documents include a copy of your passport, visa, Emirates ID, proof of salary (if employed), trade license (if self-employed) and bank statements. The bank may require other supporting documents to verify your employment, income sources and liabilities. 3 – Check your credit score Banks will look at your credit score to assess your creditworthiness and how likely you are to repay your mortgage on time. If you have a track record of repaying your debts on time, you should have a good credit score, whereas a history of missed payments, mortgage defaults, and bankruptcy can be big red flags. In the UAE, the Al Etihad Credit Bureau (AECB) is responsible for issuing credit reports. It’s a good idea to check your credit score from their website and then take steps to improve it if required. 4 – Boost your borrowing power Lenders will look at your income, expenses, and debts to determine how much you can borrow. They will typically look at your income minus any debt repayments and expenses to understand what monthly mortgage repayment you can comfortably afford. Therefore, if you want to increase the amount that you can borrow, you should consider increasing your income, paying any outstanding debts and reducing your expenses. 5 – Consider the length of the mortgage The length of mortgages varies, with the UAE permitting a maximum mortgage length of 25 years. A longer mortgage will reduce the monthly payment, but it will increase the amount of interest that you pay over the length of your mortgage. It’s important to consider the mortgage length that is most suitable for you. Are you comfortable with a higher monthly payment to pay less interest and pay off your mortgage sooner, or would you prefer the flexibility of a smaller monthly payment over a longer period? 6 – Understand the costs involved The deposit isn’t the only upfront money you’ll need to buy a luxury property in Dubai. There are also a number of fees to consider, including legal, registration, and property valuation fees. Make sure you factor these costs into your budget when calculating how much you can afford to borrow. 7 – Speak to a mortgage broker If you are looking to get a mortgage for a luxury home in Dubai, we would strongly recommend speaking to an experienced mortgage broker. A mortgage broker will give you specialized market and financing knowledge, access to exclusive rates, and step-by-step support which covers the buying process, fees, timescales and borrowing limits. 8 – Get pre-approval Mortgage pre-approval is where you’ve been approved by a lender for a mortgage up to a certain amount. It is a very good idea to get pre-approval prior to starting your property search. This will give you a clear idea of how much you can afford to borrow, and your budget for finding a property. Having pre-approval in place also shows sellers that you are serious and can afford to purchase the property, making them more likely to accept an offer from you. Get market-leading mortgage advice Securing a mortgage for a luxury property in Dubai requires careful planning and preparation, and it’s strongly recommended that you have an experienced mortgage advisor by your side. Related Articles:1. New Residential Projects in Dubai2. All About Commercial Property Insurance in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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All About Commercial Property Insurance in Dubai

Dubai is known worldwide for its lavish lifestyle and impressive architecture. It is no surprise that commercial properties in Dubai are in high demand. Dubai is a cosmopolitan city and a hub for business, making it an attractive location for investors and entrepreneurs to establish their businesses. In this newsletter, we will explore the key factors that make commercial properties in Dubai an attractive investment. Firstly, Dubai’s strategic location makes it a commercial hub connecting the east and the west. It is ideally located between Europe, Asia, and Africa, making it an attractive location for global businesses. The city’s advanced infrastructure, modern transportation systems, and world-class logistics facilities make it an ideal location for businesses to operate in the region. The government’s efforts to attract foreign investment by implementing business-friendly policies and regulations have also contributed to Dubai’s rise as a global business hub. Secondly, Dubai’s economic stability and growth potential make it an attractive location for businesses to invest. The city has a diverse economy, with a strong focus on the service sector, including finance, real estate, and tourism. The government’s focus on economic diversification has led to the development of new sectors, such as renewable energy, technology, and healthcare. This diversification has created a stable economic environment, making it an ideal location for businesses to operate and invest in. Another reason is that Dubai’s real estate market is well-developed, with a wide range of commercial properties available for investment. The city’s real estate market has shown resilience even in the face of global economic challenges. The government’s commitment to developing infrastructure and the real estate sector has contributed to the growth of the market. There is a variety of commercial properties available, including office buildings, retail spaces, and warehouses, which cater to different business needs. Moreover, Dubai’s tax-free environment and low business costs make it an attractive location for businesses to operate in. There is no personal or corporate income tax in Dubai, making it an ideal location for businesses to maximize profits. Additionally, the cost of doing business in Dubai is relatively low compared to other global business hubs, making it a cost-effective location for businesses to operate. Lastly, Dubai’s quality of life and multicultural environment make it an attractive location for businesses to attract and retain talent. The city offers a high quality of life with world-class healthcare, education, and leisure facilities. Additionally, Dubai’s multicultural environment offers a diverse workforce and a cosmopolitan lifestyle, which can attract international talent to work and live in the city. In conclusion, Dubai’s strategic location, economic stability and growth potential, well-developed real estate market, tax-free environment, low business costs, and quality of life make it an attractive location for businesses to invest in commercial properties. The government’s commitment to developing infrastructure and the real estate sector has contributed to the growth of the market, making it an ideal location for businesses to operate and grow. Commercial Property Insurance Coverage & Why You Need It Commercial property insurance is an essential type of coverage for businesses in Dubai. It provides protection against a wide range of risks that may affect the physical assets of a business, including damage or loss due to fire, theft, natural disasters, and other unforeseen events. In this article, we will explore what commercial property insurance is, why businesses need it, and how to obtain it in Dubai. Commercial property insurance is a type of coverage designed to protect businesses from financial losses that may arise from damage or loss of their physical assets, including buildings, equipment, inventory, and other property used in the operation of the business. This type of insurance covers a wide range of risks, including fire, theft, vandalism, natural disasters, and other unforeseen events. Why do businesses need commercial property insurance? Businesses invest a significant amount of money in their physical assets, and a loss or damage to these assets can result in financial setbacks that can be difficult to recover from. Commercial property insurance provides businesses with financial protection against such risks, ensuring that they can continue to operate even in the event of a loss or damage to their physical assets. In addition to providing financial protection, commercial property insurance is often required by lenders or landlords as a condition for obtaining a lease or loan. This is because lenders and landlords want to ensure that the businesses, they are working with have adequate protection in place to mitigate any risks that may arise. How to obtain commercial property insurance in Dubai? Obtaining commercial property insurance in Dubai is a straightforward process. The first step is to identify a reputable insurance provider that offers this type of coverage. It is essential to choose an insurance provider that has experience working with businesses in your industry and has a good track record of providing reliable coverage. Once you have identified a potential insurance provider, the next step is to schedule a consultation to discuss your business’s specific needs and obtain a quote for coverage. During this consultation, the insurance provider will ask questions about your business, such as the type of assets you want to insure, the value of these assets, and any specific risks that may affect your business. Based on this information, the insurance provider will provide you with a quote for coverage that includes the types of risks covered, the limits of coverage, and the premiums you will need to pay. It is essential to carefully review the quote and make sure that it meets your business’s specific needs before signing up for coverage. In conclusion, commercial property insurance is an essential type of coverage for businesses in Dubai. It provides financial protection against a wide range of risks that may affect the physical assets of a business. To obtain commercial property insurance, businesses need to identify a reputable insurance provider, schedule a consultation to discuss their specific needs, and obtain a quote for coverage that meets their requirements. With adequate coverage in place, businesses can operate with peace of mind, knowing

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New Residential Projects in Dubai

Dubai is globally recognized for its luxurious lifestyle, modern architecture, and unparalleled amenities. It’s a city that attracts millions of tourists and expatriates every year, drawn by its world-class infrastructure, vibrant lifestyle, and abundant opportunities. A key element of Dubai’s allure is its real estate market, which continues to thrive and evolve, offering a wide range of residential options. With the increasing demand for housing, Dubai’s real estate developers are constantly launching new residential projects that cater to different tastes, needs, and budgets. In this blog post, we will highlight some of the newest and most exciting residential projects in Dubai that are worth keeping an eye on. 1. Savanna Dubai Creek Harbour One of the most talked-about new residential projects in Dubai is Savanna at Dubai Creek Harbour. Developed by the renowned Emaar Properties, Dubai Creek Harbour is set to become one of the world’s largest waterfront developments. The entire development spans across a vast area and includes residential towers, villas, townhouses, a shopping mall, parks, and even a marina. This project promises to redefine luxury living with stunning views of the Dubai skyline, the Creek, and the iconic Burj Khalifa. Savanna itself is a collection of stylish 1, 2, and 3-bedroom apartments designed with modern living in mind. The project offers a unique combination of luxury, comfort, and convenience, with residents enjoying easy access to world-class amenities, including retail outlets, fine dining options, and recreational spaces. It’s not just about the homes; it’s about a whole lifestyle that offers tranquility and excitement in equal measure, all set within one of the most sought-after neighborhoods in Dubai. 2. SAMANA Mykonos, Studio City SAMANA Mykonos is a newly launched residential project by SAMANA Developers, located in the heart of Dubai Studio City. As the name suggests, the development draws its inspiration from the charming Greek island of Mykonos, known for its picturesque architecture, stunning views, and vibrant atmosphere. SAMANA Mykonos brings that same energy to Dubai, offering a selection of luxurious apartments with a holiday vibe. The project consists of 198 residential units, including studios, one, two, and three-bedroom apartments. What sets SAMANA Mykonos apart is its focus on luxurious living, with each apartment featuring its own private pool, allowing residents to enjoy ultimate privacy and relaxation. The development also offers a variety of world-class amenities, such as a rooftop infinity pool, a fully-equipped fitness center, a yoga studio, and retail and dining options. Its prime location in Dubai Studio City also means that residents are close to key business hubs, entertainment options, and leisure spots. 3. MAG 330 Located in the City of Arabia, MAG 330 is another new residential development that has captured the attention of real estate enthusiasts. Towering over Dubai’s skyline, MAG 330 is a contemporary and stylish project designed with an emphasis on aesthetics and functionality. The development offers a range of spacious one, two, and three-bedroom apartments that are built to the highest standards. MAG 330 is not just about beautiful apartments; it is a place designed for a comfortable and fulfilling lifestyle. Each unit is thoughtfully designed with high-quality finishes and contemporary layouts that emphasize open spaces and natural light. Residents can enjoy a variety of top-tier amenities, including a swimming pool, a health club, and plenty of green spaces. The City of Arabia is a prime location, with easy access to major roads and transportation networks, making it ideal for both work and leisure. Conclusion Dubai’s real estate market is continually evolving, with a wide range of new residential projects catering to various tastes and budgets. From the stunning waterfront lifestyle of Savanna at Dubai Creek Harbour to the luxurious holiday-inspired living of SAMANA Mykonos, and the stylish comfort of MAG 330, these developments represent the best of what Dubai has to offer. Whether you are looking for a spacious villa, a sleek apartment with breathtaking views, or a home with world-class amenities, Dubai’s real estate market has something for everyone. As the city continues to grow and develop, it’s clear that Dubai’s real estate sector remains one of the most exciting in the world. With so many new residential projects coming to life, now is the perfect time to explore what the city has to offer and make your dream of owning a home in Dubai a reality. Be it villa or a luxurious apartment, there’s something for everyone in Dubai’s real estate market. Related Articles: Your Best Guide to Commercial Mortgages in Dubai 5 Questions a Good Mortgage Broker Can Answer

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