on Monday, 24 March 2014

Being an old tradition for selling residential properties, open houses also help homeowners to find suitable tenants. Normally such events are organized on weekends to receive more visitors as most of the people are free on weekends. People have different perceptions about such real estate activities. Few of them think that it’s just an easy way to find new clients for real estate agents and doesn’t help homeowners to sell or rent their home. However, other thinks that it is the right way to find authentic buyers. The activity can be subdivided in to two types Public Open House (general public) and Broker Open House (real estate agents). Independent to its type basic aim of this pursuit is to expose any property to prospective buyer or tenant. It will also help homeowners to get value able feedback about their home which they can consider using to improve their home. Property owner can make essential improvements in their house to get good returns upon selling and renting. 

Despite different viewpoints of people, the activity could not be neglected completely. The real estate activity has its own benefits. It is very fruitful, when people are showing strong interest in buying home over renting. It enables property owners to save their time, after allowing them to show their home to multiple buyers and tenants in short period of time. Once you have decided to get your house registered for the next event in your neighbourhood, it is necessary inspecting your house to identify essential touchup to make your house presentable and appealing before staging this event. 

Following are few easy tips to help everyone thinking to host an open house to sell their home efficiently. 

Easy Open House Tips for Residential Property Sellers

  • Detail cleaning to remove clutter and a fresh coat of paint could be a wonderful way of enliven your living space. Even you can do it on your own or a professional will help you if you are thinking to carryout detail maintenance of gutter lines, electricity wiring and water pipelines. Such minor improvements prove to be magical and perk up your living space.
  • If you are going to host this event living in your house, it will be better making necessary rearrangements in furniture and decorations to create better impression. Consider removing unnecessary things to represent your house more spacious. Minimizing decorative will let serious buyers and tenants to conceptualize and visualize their ideas about your place. This can greatly enhance chances of successful deal.
  • Choosing a suitable time is crucial for the success. It is suggested to schedule the event when there are other open houses in your area. This way you may get more viewers visiting to your home. Moreover, you can also list your house in online listings of reputable property management firm.
  • Its better stay out during viewing. This will allow you avoid answering too many questions that visitors usually ask during the activity. Don’t provide too much information to every visitor during the activity as it could spoil future negotiation with buyers and tenants.  
  • Side line your emotions while selling or renting your home sweet home. Visitors may directly ask about the quality and age of home fixtures and appliances. Act like a professional and answer such questions with a smile to satisfy your clients. Don’t get harsh while answering and give realistic reply to their queries. Avoid answering questions about the local community and things you are not sure.
  • Don’t hesitate asking about mortgages with genuine buyers. The best way to identify real buyers among all visitors is to observe carefully the visitors to know how many of them making queries about your house. Visitors, who are asking questions, could be the serious buyer or tenant. Don’t spend your time in meeting and private viewing to visitors who failed to show proofs for preapproval of finances.
  • Follow up is essential for finding serious buyer or tenant among numerous people visited your house during open house. Sending an email to every visitor on the same day of this event is the best way to know about their intentions. Only those who have some interest in your property will proceed further by replying you email. Moreover, you can also make suitable offers to interested candidates, while asking them for suggestions to make your house more appealing. Making a sign in sheet will be a great help to maintain the complete record of visitors that you will use to follow up with them.

You don’t need much to follow these simple tips. What you need to do is to act accordingly and keep your house organized. Having followed these simple tips you will be able to host open house for efficient property selling. Especially if you are in asset market like Dubai property market, then proper staging of open house is mandatory due to high competition levels.

on Tuesday, 18 March 2014

Dubai property market is recognized for its profits. Whether you are investing to flip or rent, you may earn profits in the form of regular rental income or reselling assets on higher prices. After showing gradual recovery from economic downturn in year 2012, asset market completely recovered in year 2013. Further the winning bid to host an intentional event Expo 2020 has significantly increased the value of this Middle Eastern city in the eyes of prospective investors and entrepreneurs. The huge number of people visiting this city has increased the demand of Dubai property for rent. The emirate has already possess plenty of accommodation options like hotels, resorts, serviced, studios and hotel apartments to execute the needs of tourist. Moreover, the event is expected to generate more than 277,000 jobs in UAE, which can eventually increase the number of expats coming Dubai for job. Such employment and economic outlook will positively increase the demand of short term leasing accommodation in the city.

The increase in demand in residential properties for rent gives clear signal to developers to supply more property units. However, city developers have already been initiated projects across the emirate and most of them they are going to deliver before this event. Having considered the rising demand of short term accommodation, landlords can think to increase rents. Some of the experts have predicted that sky rocketing property prices and rents may lead to another property bubble. In order to avoid another property bubble, His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued a new Decree No. 43 of 2013. 

About the new Rent Cap

According to the Decree No. 43 of 2013 landlords of public and private sectors are allowed to increase rent to a certain extent. The primary aim is of implementing new rent cap is to benefit both tenants and landlords.

The new decree has allowed tenants to increase rents of their property units to a certain limit. Maximum 20% increase is allowed on annual basis. Previously landlords were not allowed increasing rent upon renewal if the difference between existing leasing amount and current market rates is less than 25%. The new decree has reduced this edge for rising rents to 10 percent.

The new cap law has come into effect on 18th December 2013. Instead of public and private sectors, the law is applicable on free zones and Dubai International Financial Centre as well. It is applicable upon lease renewal after considering the difference between the property rental value and the average market rate for properties in specific city communities. Average rent rates in market are set according to rent index which is produced and updated by RERA Real Estate Regulatory Agency on regular basis. 

Layered Structure of Rent Cap

The Articl1 of the New Decree gives complete layered structure of new rent cap to establish percentage increase in rent upon lease renewal. Below is the brief description of new rent cap.
  • If a property rent is less than 10% below the average rental rate in market no increase is allowed.
  • If the difference in existing property rent is between 11% and 20% below the average rental rate in market 5% increase is permitted.
  • If the difference lies between 21% and 30% below the average market rental rate maximum 10% rent increase is permitted.
  • With the difference between 31% and 40% below the average rent rates in market total of 15% increase is allowed.
  • For more than 40% below the average market rental rate maximum 20% increase in rent is allowed.
In spite of this argument, that the New Decree for rent cap is totally in the favour of landlords, it has been implemented and tenants and landlords are supposed to understand its connotation to better prepare their leases.
on Monday, 10 March 2014

Dubai has not only been recognized as business and trade hub in the region rather it is also famous for its cosmopolitan environment. Being the abode for expats, the emirate’s population possesses an unusual mix of foreigners and locals. Estimates showed that nearly80% of Dubai residents are non-UAE nationals. Political and economical stability and tax free earnings have pulled attention of foreign professionals, investors and second home seekers towards Dubai. They prefer finding job and investment opportunities here to improve their profits and standard of living. After considering the enormous interest of international investors and buyers, State Government implemented freehold property law to enable foreign buyers to purchase property in Dubai in designated free hold areas. 

Freehold Areas in Dubai

The Palm Jumeirah, The Meadows, Emirates Hill, The Springs, The Meadows, Dubai Marina and Jumeirah Lake Towers are the leading freehold areas in Dubai. Only non-GCC nationals are allowed to buy assets in these designated areas. 

Buying assets in designated freehold areas enable foreign buyers to become the property owner with complete ownership rights to keep it forever or to resell or transfer to another person in family like genuine owner in Dubai. Freehold property ownership in Dubai can be acquired in different ways. Following are different types of property ownerships in Dubai available in freehold areas. 

Individual ownership is extensively acquired entitlement that directly registers property in the name of an individual. Rapid process and simplicity are the major benefits. Buyers are required to go Dubai Land Department with passport to sign documents. A power of attorney can also sign documents for original buyer. Inheritance is the only con of possessing individual ownership as owner will be facing uncertainties of Dubai Courts on issues regarding property. Even for some countries there are certain tax implications on rental income and net capital gains on selling. 

Joint Individual ownership married couples are usually acquire this kind of ownership. The benefits are same like the individual ownership. The difference only lies in number of individuals you are dealing with. Rest of the things remains same. Again the cons are same inheritance and taxes on rental income and capital gain. Moreover, if one among the two shareholders is passed away the shares of deceased will passed on to the heirs of deceased not to the surviving spouse.

Traditional offshore company ownership is very suitable for investors that allow entrepreneurs to register assets in the name of their corporate. It protects owners from uncertainty of local succession laws. There are no issues regarding inheritance as the company never dies. It has observed that commonly companies transfer the shares to the buyers in contrast to transferring property. This will let them avoid 2 percent transfer fee for DLD. Besides its advantages, the primary con is the long duration of the process. Lot of paperwork is required along with an amount as set-up fee and annual fees to maintain good position of company in offshore register. Moreover, it is not possible to get assets registered with DLD in the name of offshore company. Only Jabel Ali Free Zone offers this kind of ownership for companies. 

Jebel Ali Free Zone (Jafza) offshore company is the latest available option for offshore company holders that allows investors to register assets in the name of company. In year 2011 DLD has issued guidelines to ban new property registrations in the name of foreign offshore companies. They are allowed to buy in the name of Jafza offshore companies. Offshore companies established in traditional offshore jurisdiction can own Jafza offshore companies. Other benefits are same like traditional offshore company ownership. Time and cost are the main cons associated with corporate structures. 

After considering the benefits and detriments of these freehold ownership types of property in Dubai, you can choose the best for you. It is advised to consider time frame, cost, taxes and locals laws before making final decision to become property owner in Dubai.
on Tuesday, 4 March 2014

United Arab Emirates has transformed itself into an ultra modern well constructed city from an undeveloped community of pearl divers and fishermen. UAE consist of seven emirates, Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah. Among them Abu Dhabi and Dubai have been recognized on international level for their tremendous growth and development in business, real estate and tourism sectors. Soon after the discovery of oil reservoirs in 1962, State Government started investing its petro dollars to built-up city infrastructure and real estate projects in commercial, residential and retail sectors to provide comfortable living space and modern lifestyle amenities for everyone living and visiting the country. With aim to reduce its dependency on oil export, government has taken several initiatives to improve business, finance and travel and tourism sectors.

UAE has been an ancient trade route for Asian, African and European countries, as it is located on the cross roads of these continent. After observing the rapid progress thorough out different sectors, governmental authorities implemented policies to facilitate foreign investors and entrepreneurs so that they consider making investments in UAE. Moreover, developers also constructed holidaying spots, entertainment and leisure activities to attract tourists across the world. Having considered the business, investment and entertainment opportunities, foreigners or non UAE nationals started choosing UAE as their second home for business, entertainment and career growth.

Why expats are showing interest in buying assets in UAE?

Strategic efforts enabled UAE to drag huge number of expats, travelers and entrepreneurs every year. Developers have constructed a wide variety of short stays and accommodation options to cater the needs of its visitors. Short stays can be rented for few hours to several days, weeks, months or even years. Such options are perfect for those who don’t have plans to stay for longer period of time. Usually second home seekers, investors and entrepreneurs are willing to buy residential and commercial units to accommodate themselves for longer periods of time. The primary reason to think about becoming the property owner in UAE is to save money in long run because rents are tending to rise.

Initially foreigners were not allowed to buy properties anywhere in UAE. What they were allowed to do is to rent or buy properties with 99 year lease. Having considered the interest of expats in buying residential and commercial assets in UAE, Government started thinking to give freehold ownership to foreigners in designated areas all over the UAE. Currently there are no federal property laws in UAE. Rather, emirates have individually developed their own rules and regulation for real estate sector.

Dubai and Abu Dhabi credited to be first to offer free hold property ownership for foreigners

Dubai and Abu Dhabi are the two leading emirates of UAE in terms of business and overall economic growth. It has been observed that most of the expats and foreign entrepreneurs prefer moving to anyone of these emirates for job, business and investment purposes. In fact, Dubai shows a unique mix of 80% expats and 20% locals in its population. It has been recognized as true melting pot of cultures. Dubai is the first UAE emirate which allows foreigners to purchase residential and commercial assets with complete ownerships rights like a local. Furthermore, Abu Dhabi has recently announced in January 2014 to offer freehold ownership for residential assets in specific investment zones of this emirate.

Current Property Ownerships in UAE

Currently there are other property ownership types in UAE. Tenants and buyers are suggested to find the right category accordingly to acquire certain ownership to use property. In addition to in freehold property ownership, other ownership rights include the following types:

Leasehold: It’s kind of contractual right that allows tenant to use existing property without giving any right on the piece on land on which it is built. You can’t sell or transfer lease on your own to another. Leases are issued for 99 years.
Usufruct: It is a real property right, which grants holder to make profits from property which is actually the property of another person. As long as the unit is not damaged or destroyed. Usufruct is usually issued for 50 years.
Muastaha: To some extent is similar to usufruct. It grants user a right to construct the unit to earn profits. Usually real estate developers are more interested to obtain this kind of ownership for their projects.

Dubai and Abu Dhabi have designated special areas for foreigners or non-GCC and non UAE nationals where they can avail freehold ownership for properties.  Dubai Land Department and Abu Dhabi Municipality are the real estate regulatory bodies to regulate real estate and property ownerships issues for foreigners and locals.