Time Is Right To Buy To Let Property Investment In Dubai

If you want to buy to let property investment in Dubai, you’re probably thinking of happy winter holidays in the sun with a nice income coming in the rest of the year. You could self-manage or get a management company to do it for you.

If you want to buy to let property investment in Dubai there are a few things you should pay attention to.

First of all a lawyer, familiar with Dubai law is highly recommended. A simple sales agreement is the only document required for purchase. However, this is legally binding and should only be signed when all reasonable checks have been undertaken and all negotiations completed. Most property for sale in the UAE is new-build - there is little resale property available. 2-4% stamp duty is payable on property purchases but there is no income tax or capital gains tax on property sales or rentals in the UAE. You will need to have a certified income to gain a mortgage in Dubai. Lenders will not take any rental income into account when assessing your application. A 1.5% land registry fee is also payable on completion. The best way to buy to let property investment in Dubai is to buy off-plan.

The golden rule if you are to buy to let property investment in Dubai – be open minded and make sure you purchase a property that has a good rental market and is not overvalued. Best to ask local letting agents what type of properties they most easily rent out.

According to Propertyinvesting.net, most investors wanting buy to let property investment in Dubai look for two key criteria – potential for capital value growth, and rental yield. If a property can be found which ranks high on both criteria, with low risk, then this is the ideal investment.