Distinguishing property free hold and leasehold

 Dubai Real estate

Distinguishing property free hold and leasehold

Know the requirement, implication of specific property types before choosing one over the other

With the recent success of the city escape Global exhibition held from October 8-10 people from across the globe have their eyes focused on the Dubai real estate market. People are not a shopping spree for the best of properties available to suite their requirements. But before we buy or rent a property we all will all the concern regarding whether a property is free hold or lease hold. Lets find out what this terms actually means

What is free hold property? In simple word it is property that's owned for life. By owning free hold property, you have  the supreme right to make use of it a way you want a subject to certain laws set by the government. Free hold properties are more popular for residential units than for commercial units. In free hold terms the property itself is an asset and may appreciate with ' time; however buying freehold property would make you see you a pinch in the pocket as compared to lease hold.

And while free hold property means ownership for life lease hold property involves ownership for a temporary period in which a tenant holds right to a property in some form of a title from the landlord it refers to simply acquiring ownership of an property for a given length of time (99 years being common). Thus the form of title or contractual agreement is used in lease hold transaction lease hold properties are more popular with commercial units than residential. The advantage is that they' re relatively cheaper to buy as compared to free hold though far more restrictive.

If you are interested in lease hold property before or buying or deciding it would be advisable to hire a property consultant who specializes in lease negotiation to help you acquire one on lease hold at the right price you also avoid the hassle of dealing with paperwork and unfamiliar legalities by letting a qualified solicitor take care of all formalities required.

More importantly leta qualified assessor check the actual property value and any other maintenance expenses cost etc involved before buying

Dubai Real Estate

Dip meeting industry warehousing needs

Dip meeting industry warehousing needs

Business park offers extensive solutions to large,medium and small enterprises

DubaiInvestment Park (DIP) is a much sought-after area in Dubai mainly on account of the facilities it offers to the industrial segment. The success of mainly industrial as well as industrial business houses depends, to a very large extent, on their logistical capabilities. Warehousing and storage facilities play a key role in this and that is one of the key strengths of DIP.

Spread over a vast area, DIP has industrial, commercial and residential complexes, meeting the growing needs of a wide range of industries. DIP enjoys the distinct advantage of being strategically located very close to upcoming international airport in Jebel Ali as well as Jebel Ali Port.

Moreover DIP has excellent road access to almost all key business areas in Dubai since there is access from Shaikh Mohammed Bin Zayed Road as well as  Shaikh Zayed Road. It is also relatively close to Abu Dhabi.

DIP offers extensive warehouse and storage facilities as well as dedicated plots where companies can custom-build warehouses that will meet their requirements. There are also ready-made warehouses available at attractive rental rates. There are many warehouses that come with adequate office space thereby providing companies with the opportunity to have the office and warehousing operations under one roof and efficiently managing their logistics needs. Many manufacturing companies located within DIP find this to be a major advantage since it optimizes the production to warehouse to retail outlet cycle.

According to a conservative estimate, more than 200 warehouses spread over 1.4 million sq.ft were leased out last year, and reliable information shows that the numbers have grown this year. A distinct advantage is the high level of security that is being provided to the warehouses in DIP with the compound being fully fenced.

Dubai Investment Park 

·       More than 200 warehouses in DIP were leased out last year.

·       It also offers plots where firms can custom-build warehouses. 

·       DIP has excellent road access to almost all key business areas.

 

Enjoy community living in’The Springs’

Enjoy community living in’The Springs’

For families who want peace and quiet in a serene, self-contained gated community.

The Emirates Living Community comprises of neighboring Emar properties including Emirates Hills, The Lakes, The Views, The Parklands, The Meadows, The Springs and The Greens.This area is close to Dubai Marina, Dubai Media City, Emirates Golf Club and the American University of Dubai.

The Springs is one of the preferred locales for families who want an ambiance comparable to that of Arabian Ranches, minus concern over the relatively longer drive away from the city. There are three schools in the vicinity of Emirates Living namely Dubai Internat ional Academy in Emirates Hills, Emirates International School in the Meadows and Dubai British School in Springs3.

The sprawling lush greenery, 24-hour security, parks, barbeque areas, community swimming pools, sports facilities, nurseries, mosques, numerous convenience retail options and medical center make this gated community sufficiently self-contained, whilst being close enough to upscale Dubai malls like IBN Battuta Mall and Mall of the Emirates.

Springs residents enjoy the amenities shared in common with other Emirates Living residents. They have access to the Emirates Hills Montgomerie Golf Course and the prestigious Golf Academy.

Homeowners of the three, four and five-bedroom houses with floor space areas ranging from1,772 square feet to 3,030 square feet also get their own carport for two cars, a private garden and balcony overlooking the picturesque landscape and neighboring developments.

According to a report from Asteco, prices in villa communities like The Springs, Arabian Ranches and The Meadows have gone up by 7% to 8% quarter-on-quarter. Demand is fueled by the excellent build quality of the properties and the limited number of units available in the market.

Dubai Real Estate Tips

 

The Springs is a part of the Emirates Living Community by Emaar

Of the three schools in the area, the Dubai British School is in Springs 3

Residents have access to the Montgomerie Golf Course and Golf Academy.

The difference between a townhouse and a villa in places that feature row houses.

The difference between a townhouse and a villa in places that feature row houses.

Some would-be buyers and tenants look for villas in places that feature row houses.

With numerous new developments continually cropping up in the local property market, it’s easy to get lost and confused as a buyer as the estate agent rattles on about this or that piece of property that would be a good option for your investment. But before deciding on a place or community, decide on whether you want an apartment, villa or townhouse first.

An example of the usual confusion in the market is when customers look for villas in The Springs. The fact of the matter is that there are no villas in The Springs but that actually a community that consists solely of townhouses.

In some communities like Al Furjan, Green Community, Arabian Ranches and Victory Heights, you will find a mix of both townhouses and villas.

One of the most important differences between a townhouse and a villa is that a townhouse is attached marking up a row or terrace (normally tall and narrow and generally having two or more floors),whereas a villa is an independent structure detached from any neighboring properties.

Villas are usually homes on larger plots of land whereas townhouses have smaller plots similar to the size of the built-up area. The term villa originates from the large country houses of Roman times considering of an estate with a farm and residential buildings arranged around a courtyard.

So if you’re one who’s desirous of more privacy, space and plan to have garden, and have the budget that allows for a villa property then go head and find yourself a nice villa-an excellent decision especially for people with a growing family. But if your budget is limited and you have nothing against living closer to your neighbor, then a row house or a townhouse might just be for you.

Dubai Real Estate Tips

Before deciding on  a place think whether you want a townhouse or a villa

A villa is an independent structure detached from neighboring properties

A townhouse is a style of housing where a row of identical houses share walls.

Property flipping in Dubai

Property flipping

Once left unbated, resulted in a massive spike in property prices.

The act of purchasing a revenue-generating asset(most commonly real estate), and quickly reselling it for profit is referred to as “flipping”.

Several years ago, before the property market crash, it seemed that property flipping was happening everywhere, with adverts for mortgages and loans in every newspaper,and reality TV home makeovers shows dominating the screen. Property flipping seemed all the rage and nowhere more so than in Dubai. Back in 2002,when expats were first given the right to own the leases to their homes,it was common place for them to buy and then”flip” the  lease for property to another buyer once the value of the property had increased. As a result, property prices increased in some areas by as much as 79% according to Better Homes Dubai.

Whilst flipping has been a common practice throughout the world as a way for investors to increase the profit made from investments and make money simply by buying and selling at the right time,it had a significantly negative effect on the UAE real estate market. Continuing unbated property flipping resulted in a massive spike.

“As a result property prices increased in some areas by as much as 79%”

Better Homes Dubai in property prices in the UAE which had the knocked on effect of increasing the cost of living in Dubai. This, in turn, diverted potential investors to other less expensive cities to invest in and resulted in a tumultuous real estate market that was unprepared for the property crash in 2009.

In the ‘’good old days’’, some investors would buy property off-plan and then sell the property at escalated price once it was completed. However, this is clearly no longer feasible as project completion has slowed down significantly, compared to the speed of work during the real estate boom of 2007 and 2008.

New mortgage laws have been introduced to protect against fraud, particularly fraud-for-profit. Only registered financial institutions are allowed to grant mortgages. Those looking to buy and resell off-plan property must provide registration proof with land department. The sheer amount of paperwork required can inhibit the speed at which potential flippers could buy and resell properties.

Speculation Flipping

Speculation flipping is the act of buying a property low and then selling it at a higher price simply based on market speculation of what the property will be worth, without adding anything to validate or justify the increased price.

It can be viewed as “predatory” in nature since it usually involves taking advantage of investors or buyers with fewer options and less information available to them.

Whilst Dubai is making an effort to curb this practice and regulate the property market, more transparency is required throughout the buying process, so that investors are not left to base their decisions on whatever(mis)information they are given.

Fix & Flip

In the case of ‘’fix & flip’’, the “flipper” puts in knowledge and effort to make the property better and add value to it, therefore making it logical to command a higher market price.

This may involve making both cosmetic and construction improvements such as refurbishing or redecorating the property,landscaping or improving the inner workings of the property such as the water or electrical mains.

Another way of making a profit is by investing in up and coming areas where prices are projected in increase dependent on the introduction  of local amenities such as transport links,schools and shopping malls. Not to be confused with property flipping, this form of investments takes time to mature and is a valid reward for investing in the right place at the right time.

Property Flipping