Amid all the news that mortgages are unavailable or ridiculously expensive, house prices are dropping and homes are being repossessed, it seems not all property is on a downward spiral. In fact, in London, where the big money is, the demand for property is increasing, particularly around Battersea and Docklands.
Developments are going up all over the place and most are sold well before completion. How is this so? Property developers are selling 'off plan'. Land is a precious commodity in London and buying up even a relatively small piece can see you with a very tidy income once planning is agreed. Investors are keen for a quick turnaround of profits, buying while a discount is possible and selling on as soon as the development is complete. With the demand for accommodation in London as high as it is, they can also afford to hang on to these places for a high rental yield while they wait for property prices to rise again.
Is it just investors that want to buy property off plan? No - there are many owner-occupiers who have caught onto this way of buying a property. If you get it in the early stages of development it is possible to negotiate on deposits, prices and even finished spec.
So, what is off plan and how can you get one?
A developer will buy up a piece of land and secure planning permission on a proposed development. Hoardings will be erected around the land advertising what we can expect to see in the future and contact details. A plush marketing suite will be installed and a push will begin to start selling the properties.
But how can you buy a property that looks like a patch of mud? This is where clever computer graphics comes in with CGI. Computer Generated Imagery is an invaluable source of selling material for a developer. Images are created from 2D plans that truly bring the development to life. Buyers are able to view what will be the finished project before it has even begun, thanks to CGI.
This is one of the things a buyer needs to scrutinise with many aspects in mind. It gives you the chance to look at properties from different angles, to assess the positioning, the layout and even the way the light enters a property. If the CGI includes an exterior view this should determine whether the property you are interested in overlooks a car park, local rubbish dump or has a beautiful view. This won't really make a difference to the value but will determine how easy it is to rent out later on.
If you intend to rent out the property once it is complete, then check out local demand for rental property in the area and while you're there check out the area in general. If regeneration is going on in the area you can be sure demand will be high later on.
House builders Berkeley, say eighty per cent of their developments are sold off plan, half to developers and half to owner/occupiers. They come with the benefits of warranties and no maintenance which are definitely aspects worth considering to avoid future problems.
A property developer will hold a pre-launch event to gauge interest in the development and this will be mainly open to investors. This will be followed by a launch party that will be more widely advertised through estate agents and it is possible for the public to sometimes gain access to these events. If you can get involved, it is a good idea to have a mortgage in principle agreed beforehand so that you are in a position to reserve a property should you so wish to do so. Take a look at the scale models and the CGI and decide on a property.
You can haggle over discounts at this stage and once you have acquired the property the price will probably have increased for you to obtain a quick turnover and decent profit for little outlay. Exchange of contracts will happen quite quickly followed by a completion date. You will have a period of around two weeks to carry out a 'snagging' visit to the property to determine any faults that you want corrected before everything is signed and sealed.
In the slightly precarious property market that we currently have, this is a good way to buy a property at a discounted price and with the aid of CGI, at least you will know what you can look forward to when the development is finished.
Taxes and Fees
Buying real estate in Dubai are not subject to any taxes. Registration of property rights in the land department would cost the buyer to 1.5%.
Average real estate prices
Average cost of 1 sq. km. m. in Dubai range from $ 3000. Important detail is that all projects in Dubai, whether apartments or individual homes, shall have to finish, that is, the price includes not just bare brick walls, and rooms in which you can immediately strike. Do not forget about the parking spaces.
Buyers interested in the finished villa or town house, in the massive building Meadows, given from $ 1500 for 1 square. m. - in a spacious house. For the town house in such a project Springs, you will have already put in $ 2400 for 1 square. m, as well as residential areas are quite small, but the principle of the price is inversely proportional to the size of is valid everywhere in Dubai.
Legal
Federal law of the land the UAE does not exist yet, so issues relating to land and property issues are solved in accordance with the laws of each emirate. In 2002, Crown Prince of Dubai and UAE Vice President Sheikh Mohammed bin Rashid al-Maktoum special decree authorized to sell the land and housing in Dubai to foreigners to full ownership. According to this principle, the owner may use the purchase for private purposes, resell it, rent, lease, donate or bequeath. In doing so, the purchase of real estate is only possible on a strictly defined territories.
15 March 2006, the UAE was adopted Law on Registration of Real Estate, defines the basic concepts of ownership of real estate and land in the territory of the Emirate of Dubai. The main points of the Act were the following:
Citizens of the UAE and the Gulf countries have the right to purchase real estate in full ownership, as well as long-term lease for 99 years anywhere in the Emirate of Dubai. Citizens of other countries have the right to acquire land and property in full ownership and long-term lease only in designated areas. Also, all the above categories of persons were granted the right to officially register the purchase at the Land Department of Dubai, to obtain the status of the owner.
Now the transaction of sale is registered with the Department of Land and Real Estate Dubai. Registration in the Land Department confirms the owner's property rights in real estate, executed in his name. In most cases, the client must pay a deposit of the purchase price (usually 10% or more) and then carry out further payments at various stages of construction.
Of particular interest to foreigners owning Property in Dubai, is the order of succession. In this respect the UAE law is sufficiently complicated and contradictory. Most lawyers conclude that sequence and the distribution of inheritance to decide the law of the country of origin is the testator. However, some articles of the Civil Code of the UAE shows that in some cases the order of succession may be determined by local laws with a religious connotation and is quite different from European. In general, the question remains open and can be completed only after a decision by the legislative and judicial organs of the UAE.
Visas and residence permits
When buying Real Estate in Dubai, the owner can obtain a residence permit (residence visa) for yourself, spouse, children under the age of majority, and unmarried daughters. Resident visa is issued for three years and updated at the end of this period for a fee. Visa draws up a company-builder, its cost will be about $ 1500. This visa entitles free entry and exit, and does not limit the period of stay in the country, but in order to continue to apply a visa, you must visit the UAE at least once every six months. Visas are issued immediately after the willingness of the project and design it in the property. Work Permit to obtain further.
Both Catherine Harvey & Maury Klein are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Catherine Harvey has sinced written about articles on various topics from Culture and Society, Home and Wedding Gowns. Property expert Catherine Harvey looks at the use of to sell property off plan.. Catherine Harvey's top article generates over 1500000 views. to your Favourites.
Maury Klein has sinced written about articles on various topics from Credit Cards, Religion and Malware. Nancy Hall is a Real Estate Consultant from UK. She is working with Nomore Hotels. You can get more information about and. Maury Klein's top article generates over 1830000 views. to your Favourites.