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Q. When in Dubai - Rent vs buy?
A. Renting is often described as ‘throwing money away’ but this isn’t always true, this is where you get a place to live in a monthly basis payment and you can move any time after contract ends. While Buying has an opportunity cost, the amount you can invest and earn on the down payment, taxes, insurance payments, and interest. You own your house, but you pay quite a bit in interest and taxes.
 
Q. How do Community resources in Dubai help increase the sales of residential spaces?
A. Buying Residential Property for investment has both risk and rewards. Community resources is essential in selling properties especially in a Residential were buyers are looking at the property and community that are worth paying for and  hassle free. 
 
Q.  What are the exact steps to buy a property from Prima Luxury Real estate brokers?
A. Once you have been through Prima Luxury Real Estate’ http://www.primaluxury.com/contact ,these are the steps in buying property at Prima Luxury which includes four basic legal steps that need to be followed in Dubai.
 
1. Establishing buyer and seller agreement
Once you have found a property that you want to invest in, you must consult a real estate agent. They will help you communicate, negotiate and outline the terms of sale with the owner.
 
2. Signing an agreement for sale
Once all the details are finalized, it’s time to sign the agreement of sale, also known as the Memorandum of Understanding (MoU). In Dubai, this document is entitled ‘Contract F’ and is available on the Dubai Land Department’s website, under the ‘Contracts’ page. Upon signing this contract it is standard practice in Dubai for the buyer to pay a 10% deposit of the property value to the seller.
 
3. Applying for a No Objection Certificate (NOC) 
To allow for the transfer of ownership you must apply and pay for a No Objection Certificate from the developer of the unit you are purchasing. This will allow for the transfer of ownership. Once all outstanding service charge payments are finalized the developer will be able to provide an NOC.
 
Q. How am I protected if the tenant damages the property?
A. Any damage caused by the tenant, or by anyone the tenant invites to the property, will need to be repaired or paid for by the tenant unless there are major damages such as water leakage, sewage problem, AC problem, Water Heater etc. If the Tenant is moving out without rectifying the damages this will be deducted to the tenant´s security deposit.
 
Q. What happens if the tenant leaves before the end of the lease?
A. The lease agreement of any property must be in 12 months period, however if the tenant leaves before the lease ends there will be 1 to 2 months penalty, hence it depends on the  discretion of the landlord and the Brokers.
 
Q. What are the advantages of freehold properties?
A. Freeholds are usually houses. The advantage of a freehold property is that you have complete control over it, and are not subject to any further payments, like ground rents, service charges or admin fees, which can be the case with leasehold properties. Owners can make changes to the structure and renovate as they see fit.
 
Q. Are geographic locations an important factor for buying a property in UAE?
A. Location is a common mantra in real estate. It's a good advice except for one thing: Most people have no idea what it really means. A good location can mean different things to different people, of course, but there are also objective factors that determine a home's value. Depending on your personal needs and preferences, you may not be able to buy a home with all of these factors.
 
Q. Do the climatic conditions have a direct impact on rent expenses in Dubai?
A. Climate conditions only have a minor impact on the rent expenses in Dubai, winter & summer season affects the Dubai Electricity and Water Authority usage. For instance, summer facts statement from the expats living in, it is much higher than winter season because of the airconditioning and water consumptions every day. 
 
Q. What are the process of leasing a property for an induvial?
A. Here's a step-by-step guide to help you through the process.Step
 
Step 1. Search apartment listings in websites propertyfinder.ae, JustProperty.com, Bayut.com, Dubizzle.com. You can limit the listings based on your needs such as number of rooms, areas, furnished/unfurnished, etc. 
  • Rental Amount
  • Number of cheques over a rental year
  • Security deposit (usually 5% of the rental amount)
  • Furnished or unfurnished
  • When can the unit be viewed
  • Desired starting date
  • Any other conditions.
Step 2. Shortlist a few apartments meet your requirement and call up the contact person mentioned in the listing, who will either be the agent or landlord.
 
Step 3. View the unit Make sure you take note of the minute details when you visit (take photographs if required.)
  • Access to and from the metro station or bus stop, in case you don't drive
  • Security
  • Proximity to your workplace
  • Noise in the area
  • If possible interact with the neighbours to know if they face any challenges
  • Facilities such as gym or swimming pool
  • Parking facilities.
 
Step 4. Making an offer-In case you decide to take the unit, you may want to negotiate on the rental amount. The most common way to go about this is to bargain on the number of cheques.
 
Step 5. Reserve the property if you want the landlord/agent to secure that unit for you, you will be asked to pay a refundable security deposit. It's usually 5% of the rental amount
 
At this point, you also need to provide the following to the agent:  Your Passport / Your Passport
 
Step 6. Drafting the contract the agent will then send the Tenancy Contract which will include all the information regarding the rental (including any special conditions agreed by both parties). Go through it thoroughly and suggest changes if necessary. For instance if you want the property to be repainted, make sure it's clearly stated. 
 
The contract must comply with the tenancy laws in Dubai.
 
Step 7. Signing the contract after you're convinced about the contract, you may sign and submit, and hand over the rent cheques and the agency commission. Make sure you receive invoices for the same. 
 
The agent will then get the landlord to sign the contract, hand over the cheques to him (sign an acknowledgement receipt).The landlord will keep one of the signed contracts and the other signed contract can be kept by the tenant. The tenant will be given the keys and access cards. The tenant will also sign a handover form clearly stating that he/she is receiving 'x' amount of keys, access cards, parking bay slots, etc.). 
 
Step 8. Connecting DEWA The tenant will need to submit the following documents to DEWA (Dubai Electricity & Water Authority):
  • DEWA number (found on the side on the property's entrance)
  • Copy of the tenant's and landlord's passpor
  • DEWA form
  • Title deed (for freehold property or SPA if it has been bought from a reputable developer) or affection plan
  • Dh2, 000 (for apartments) or Dh4, 000 (for villas) as a refundable deposit, and Dh110 for setup charges
Supply is activated within 24 hours of registration and payment of security deposit.
 
Online Procedure:
 
1. Online Application Submission Fill-in the online application form with required information.
 
2. Mandatory required attachments are: Tenancy Agreement Passport with Valid Visa Page/Trade License. You will be required to pay Security Deposit online using ePay.  (Info from DEWA website)
 
Step 9. Ejari Registration the following documents are required:
  • Original tenancy contract
  • Original receipt of DEWA connection in the tenant's name
  • Title deed (for freehold property or SPA if it has been bought from a reputable developer) or affection plan
  • Copy of the tenant's and landlord's passport
  • Copy of Emirates ID
Step 10. Move-in form some developers need the tenants to submit an NOC before they can move into the property. The following documents are required:
  • EJARI Certificate
  • Passport and visa copy of the tenant
  • Copy of the Tenancy Contract
  • Move-in form 
For instance, the security in the building could be such that they don't allow tenants to move in on Fridays. The tenant must raise these questions with the landlord beforehand.
 
NOTE: The rents can have a fixed contract, which is usually one year, or no contract. In case the contract is for less than a year, it falls under short-term rental. The laws are governed by Dubai Tourism board. 
 
Q. How many cheques are generally a safer option during leasing a property in Dubai?
A. Paying cheques are risky deals unlike paying cash. To have safer cheque payment option during leasing a property in Dubai should be 3 to 4 cheques. 
 
Q. Why is the security deposit taken from tenants while leasing a property?
A. Security deposits are paid before moving in or taking possession of the property and these deposits are typically the same amount as the monthly rent. A security deposit might be used toward any repairs or replacement of appliances in a rental unit if the damages resulted from the actions of the renter.
 
Q. Impact of EXPO 2021 on Dubai real estate?
A. Dubai Expo 2021 is centred on the theme, ‘Connecting Minds, Creating the Future’. Self-evident as it is, the event is expected to be impactful during its course and reverberate through time. According to E&Y’s report, the economic impact of Dubai Expo 2021 will be in excess of $33 billion where it goes on to reiterate the biggest beneficiaries of this growth the Dubai real estate industry. 
 
Q. What is a stratified market?
A. A stratified market in real estate is when you take a city and divide it into classes based on home value and type. Once you have the area you want to buy or sell a property in broken out into groups, you can determine if you live in a buyers’ market or sellers’ market.
 
Q. How much do I need for a down payment?
A. The UAE Mortgage Cap law requires non-UAE nationals to have a cash down payment of at least 20% of the property value, and UAE nationals to have a down payment of 15%, plus associated purchase costs. This goes up 30% if your property is over AED 5 million and 40% if you’re buying your second or third property. This means you’ll need a clear savings plan as well as a good idea of how much you want to spend. 
 
Q. Do I need to do a final walk-through?
 A. YES! Final walk-through is a common contract contingency to be aware of when purchasing a home. The primary purpose of a final walkthrough is to make certain that the property is in a good condition in which you agreed to buy it and worth paying for.
 
Q. What is the difference between a list price and sale price?
A. The list price of an item is the same as the suggested retail price. If you're the retailer and manufacturer of the item, you're responsible for setting the list price based on what you believe the product is worth. 
     A sale price is a discount off the list price. With this type of sales promotion, you can offer a percentage off or simply deduct a flat amount from the suggested value.
 
Q. How do you determine how much my home is worth?
A. Selling your home is a big decision. It can feel like a huge task, and you may have no idea where to start with. Determining the worth of house is to check your monthly mortgage Payment, Your opinion of how great you’re home is, the years of your house built, the location’s safety and your memories of your home.
 
Q. How long does the listing agreement last?
A. Listing agreements typically are (and certainly should be) for a set period of time, often on the order of 3 months for lease and 6 months for sale.
 
Q. What is a sale contingency?
A. Home sale contingencies are clauses in a real estate sales contract that protect buyers who want to sell one home before purchasing another. If the buyer’s house sells by a certain date, the sale moves forward⁠, if not a buyer can walk away. Home sale contingencies can be risky to sellers because there is no guarantee that the house will sell.
 
Q. What are the local amenities and resources in my area?
A. Local amenities and resources such as a leading supermarket near to your home can seriously boost its value, other than that are restaurants, Transport Hub, Sport Centres, Churches and Mall. House nearby beaches and parks are added plus.
 
Q. How safe is the Neighbourhood?
A. A neighbourhood is an area where people live and interact with one another. It’s important to be proactive about your safety, especially when it comes to choosing a place to live. After all, the safety of your neighbourhood impacts everything from your happiness and sense of security to your home’s resale value.
 
Q. How Will My Home Purchase Affect My Taxes?
A. The main tax benefit of owning a house is that the imputed rental income homeowners receive is not taxed. Although that income is not taxed, home owners still may deduct mortgage interest and property tax payments, as well as certain other expenses from their federal taxable income if they itemize their deductions. Additionally, homeowners may exclude, up to a limit, the capital gain they realize from the sale of a home.
 
Q. How long is the tenancy contract?
A. Contract helps reduce and limit potential disputes between landlords and tenants and guarantee their rights. The contract allows both the agreeing sides to add additional clauses that do not conflict with the Tenancy Law and other Property laws of Dubai that are applicable, thus contract holds in 12 months period. 

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