UAE Finance?

[Roshan]

Originally Posted by DoBuy

Thanks Roshan,
I will contact them and see how they can help me.

Taking on from where Rammah left on the interest only loan. You would be better off by taking a second mortagage ( interest only ) loan on your Dubai property. Thereby you pay only the interest factor and the premium probably in 10 or whatever years the bank decides.

The advantage is when you rent. The rent in most cases will exceed the interest factor and presto you are on positive cash flow.

Now over 10 years the principal would deppreciate and you would pay the bank pittance at the end of the tenure. During this time your property appreciation would have almost doubled.

You are better of with an interest only loan. How I wish Dubai had this facility.

Insist on a interest free loan while you speak to John Charcol or Global eye.

Good luck.

Regards

Roshan

[DoBuy]

Thanks Roshan.Someone from John Charcol is looking at mortgages for me(do u know globals number?)They are looking at a re-mortgage as I cant a second mortgage with another company,all my mortgage needs to be with one provider.I have asked them to work it on a repayment mortgage as the bulk of the repayments will be paid for by rental from a dubai property.I will prob get them to look at interest only also.

[Roshan]

Originally Posted by DoBuy

Thanks Roshan.Someone from John Charcol is looking at mortgages for me(do u know globals number?)They are looking at a re-mortgage as I cant a second mortgage with another company,all my mortgage needs to be with one provider.I have asked them to work it on a repayment mortgage as the bulk of the repayments will be paid for by rental from a dubai property.I will prob get them to look at interest only also.

You can contact Daniel Edmund on 009714-3489330 or 0097150-226473. I don't see any reason why you cannot have a second mortgage with another company. They will calculate your loan to value ratio taking into consideration your present liabilities with the first mortgage. Global eye will be in postion to advise you on how to go about the second mortgage. Again, insist on a interest only mortgage.

Stuart from John Charcol was helpful when I contacted him. Nothing worked out though as the developer was not on the approved list. Unlike in the UK, mortgage only works if they are on the developers list. With Escrow in, the mortgage market should open out.

Roshan

[Roshan]

Originally Posted by DoBuy

Thanks Roshan.Someone from John Charcol is looking at mortgages for me(do u know globals number?)They are looking at a re-mortgage as I cant a second mortgage with another company,all my mortgage needs to be with one provider.I have asked them to work it on a repayment mortgage as the bulk of the repayments will be paid for by rental from a dubai property.I will prob get them to look at interest only also.

You can contact Daniel Edmund on 009714-3489330 or 0097150-226473. I don't see any reason why you cannot have a second mortgage with another company. They will calculate your loan to value ratio taking into consideration your present liabilities with the first mortgage. Global eye will be in postion to advise you on how to go about the second mortgage. Again, insist on a interest only mortgage.

Roshan

[DoBuy]

Thanks again Roshan

[Rammah]

Originally Posted by DoBuy

Thanks again Roshan

DoBuy: Check your pm for the contact details of the broker based in the UK.

[stumbled]

I have posted several pitfalls and how to go about investing and raising finances in a property market like Dubai.
If you are UK based the best option to finance the property in a place like Dubai is to remortgage or release equity from your current house. The remortgage rates are cheaper and still available for a fixed period under 6%if searched and coming down.Further, dont forget if you are going through John Charcoal it is going to be a buy-to-let mortgage and much more expensive. The key to any investment, let alone a property one has to be thoroughly researched and to my knowledge the best income so far is produced from International city yieldng close to 9% gross and once you deduct all the fees,maintanence,cost of furnishing, dropping dirham(linked with dollars) you are barely making like 7-8% nett if you enter at these levels. NO DOUBT THOSE WHO ENTERED EARLIER HAVE MADE A CAPITAL PROFIT AND THOSE WHO HAVEN'T SOLD ON ARE YIELDING ABOUT 12%-15%.
Dubai, is and will be resilient to property crash for now, only cause it is a CASH MARKET, majority of the people investing out there are cash buyers and don't need a mortgage, and they are majority from, INDIA,RUSSIA,PAKISTAN, AFRICAN CITIES AND GULF STATES, so now we know why they don't need a mortgage or don't even know the concept of it.The initial influx of investors from the UK was there ,when things were booming in the UK and properties and refinancing was cheaper. That is why it is important you raise cash cheaply to buy out there as anything raised locally will be so expensive you will have to pay the shortfall from your pockets.
MOST IMPORTANTLY, as you are from the UK YOU HAVE TO DECLARE ALL YOUR INCOME WORLD WIDE IF YOU RESIDE IN THE UK and pay taxes on the rental income or capital gains you make,however you can deduct the interest and expenses from the rental income. Also, remember to buy your property in joint names with your wife as when you sell if you are in the UK you can double your CGT(CAPITAL GAINS TAX)allowance. My last point to you is there is any room for further capital growth left?? unless you are buying something at launch and the prediction is there is going to be over supply of properties by the end of this year. I would advise all those sitting on the fence , wait a little longer, it is unfortunate that the US cut rates by 0.75% just to avoid reccession, but for how long, this is just trying to put the problem under the carpet, with oil prices falling and US just avoiding a reccession for now, the question is for how long?? And when that BURST comes the world's economies with collapse as they are creating a huge bubble by lowering inter lending bank rates.I give it 4 months,before we see the worst.GOODLUCK!!

[DoBuy]

Most opinions and published in-depth reports indicate if the market does slow up it wont be till 2009 at the earliest.This is based on the fact that due to late completion times as with most projects,demand is more than supply at the moment and supply is not expected to catch up till 2009.Other reports sugegst prices will increase up till 2012.If u invest in Dubai personally i think u should look at it long term and ride out the inevitable price corrections.

[stumbled]

Originally Posted by DoBuy

Most opinions and published in-depth reports indicate if the market does slow up it wont be till 2009 at the earliest.This is based on the fact that due to late completion times as with most projects,demand is more than supply at the moment and supply is not expected to catch up till 2009.Other reports sugegst prices will increase up till 2012.If u invest in Dubai personally i think u should look at it long term and ride out the inevitable price corrections.

I agree with you, there is still demand for now, so you can either let your apartment for 2 years and we are in 2008..so that means come 2010 and you will either have to reduce your rental or take a hit, which means empty property for long periods. Lets not forget the cost involved with properties will go up with inflation, but rents will fall to attract renters for better properties?

If you even search in this forum people have started to sell their studios for 400k+ ,when the price was 500k+ a few months back, why? and rentals for studios are 40k, which means a gross return of 10%?? gross......dont forget they still have to pay a commission, maintainence,transfer fees , if you have an estate agent then 5-8% fees,etc etc.
I was reading the lending rates arranged in Dubai are in the region of 9% if anyone is arranging finance. Now i leave it to all of you to do your homework or to see simple maths here and notice the loss and out of pocket expenses.
People are making 2-6% in capital gains, you are better of depositing your cash in bank, gone are the days of 20-50% returns. Imagine the loss one has to suffer because of speculation, especially when there is talk of US and UK reccession. If anyone can show me how practically to achieve 5-8% net profit after all expenses in Dubai, I might alter my opinion.

[DoBuy]

After deducations I'll be making 15% on my modest appartment in silicon oasis so I'm happy with that.Whether or not you will find rental easy depends on where you are.DSO
since the headquarters opened last april already has 93 companies signed and theres talk Microsoft want to put 30.000 workers there(bill gates in town next week)
You also have Academic City next door.
Also my mortgage is in the UK so I'm not paying the high rates of dubai.Personally I havent seen evidence of prices coming down in general.Like I've already said,I believe if u look at it as a long term investment u will be ok.I agree there will be a price correction but then as Dubai becomes a more and more prominent city,the fantastic projects get finished,it will become a very desirable place to live.In ten years your investment will have risen greatly in value.Lastly lets not forget prices in Dubai are still some way below other major cities and will catch up one day.