Buying property in Dubai

[insurance_jon]

I've liked my last few trips to Dubai, and am considering buying a pad out there.

What are the pitfalls and does anyone know any good agents to buy through and separately to rent out when I'm not using it?

[Frankie Vaughn]

Done your Research then.

Awful place to buy for investment purposes now, missed the boat one might say. Prices and rents falling by about 5-15% this year.

[insurance_jon]

So wait a year or two then;)

[6th Gear]

We just bought here, but we plan on staying long term.

Give Greg Ware a call at Allsopp & Allsopp.

http://www.allsoppandallsopp.com/
[phone]

The best agent I've dealt with here by a long mile.

Adam

[After_Shock]

Markets very uncertain at the moment and very few appear to be buying, although will be some bargains about.

Would probably wait a while for things to either level off or potentially slump and get an even bigger bargain.

[dxbtiger]

Buy to let?

If so, yes the arse is falling out of the market at the moment, but if you can buy with a tenant that has moved in recently then it could be an 'ok' time to do it.

Fresh tenant rates will only head one way at the moment, down (unless they stick to advertised rates for good developments).

The rental index is behind the market anyway so for people that moved into a unit like mine after I did, there is real way of them reducing their annual rent apart from moving and the market hasn't moved down enough to make the cost/pain of doing so viable imo.

Buy to let can also be a minefield, a clued up tenant is very well protected here, I should know, I am one

Edit - just seen the 'rent it out whilst I am not using it part' - see above minefield comment.

[After_Shock]

dxbtiger said:

Buy to let can also be a minefield, a clued up tenant is very well protected here, I should know, I am one

What are the basics of the protection to tenants here? Being honest ive never moved since I moved to the UAE and my rents gone up once in 3 renewals so never had to go into it really.

Is it a case of what the rera calculator says is the rule?

Any truth in if they don't tell you 90 days before your contract renewal then they cant put it up?

[dxbtiger]

After_Shock said:

What are the basics of the protection to tenants here? Being honest ive never moved since I moved to the UAE and my rents gone up once in 3 renewals so never had to go into it really.

Is it a case of what the rera calculator says is the rule?

Any truth in if they don't tell you 90 days before your contract renewal then they cant put it up?

Whatever the index says is law, that only, index figures are taken from Ejari.

EG - I got my townhouse at 95k just before the Expo2020 announcement. A month later they were trading at 110-115 depending on cheques and location. They haven't moved since then, I am within the % on the index so my landlady cannot put the rent up by a single Dirham, I renewed in October for 95k. Basically I will be paying that until I move I think

The 90 day rule is 100% correct and enforceable, that's any clause change and the amount.

To evict a tenant you must give 12 months notice, the letter must be from Notary Public (used to be registered mail as well, this is no longer valid afaik). The ONLY valid reasons for evicting a tenant are

1) If you or next of kin are planning to move in
2) You are going to sell the property (empty)
3) You are planning to modify/demolish/do maintenance to to the property that renders it unhabitable (Also needs to be backed up with supporting Municipality/Developer documents)

So the usual trick is owners take option 1 or 2 then bung it back on the market for an increased price.

If your evicted tenant can be arsed, once you've rented it again you'll be up in front of the Rental Committee and they will tell you to pay the old tenant at least 1 years rent, plus moving costs sometimes.

People whine and moan about landlords here but if you know what can and can't be done then imo the law very heavily favours the tenant.

[After_Shock]

dxbtiger said:

Whatever the index says is law, that only, index figures are taken from Ejari.

EG - I got my townhouse at 95k just before the Expo2020 announcement. A month later they were trading at 110-115 depending on cheques and location. They haven't moved since then, I am within the % on the index so my landlady cannot put the rent up by a single Dirham, I renewed in October for 95k. Basically I will be paying that until I move I think

The 90 day rule is 100% correct and enforceable, that's any clause change and the amount.

To evict a tenant you must give 12 months notice, the letter must be from Notary Public (used to be registered mail as well, this is no longer valid afaik). The ONLY valid reasons for evicting a tenant are

1) If you or next of kin are planning to move in
2) You are going to sell the property (empty)
3) You are planning to modify/demolish/do maintenance to to the property that renders it unhabitable (Also needs to be backed up with supporting Municipality/Developer documents)

So the usual trick is owners take option 1 or 2 then bung it back on the market for an increased price.

If your evicted tenant can be arsed, once you've rented it again you'll be up in front of the Rental Committee and they will tell you to pay the old tenant at least 1 years rent, plus moving costs sometimes.

People whine and moan about landlords here but if you know what can and can't be done then imo the law very heavily favours the tenant.

Interesting to know many thanks.

Quick question as you mention Ejari, say for example a tenant isn't registered with them does the Rera index come into force instead or must you be Ejari registered?

[dxbtiger]

No Ejari, basically none of the above applies, it's not recognised as a valid rental contract and you waive all rights.

Anyone who doesn't have Ejari should get it done asap, it costs peanuts (about 160 dhs I think) and takes no time at all.