Hi guys
I am looking to borrow money to buy in Dubai as i have done a great deal of research and want to puchase there.
Does anyone know a financial institution in Australia that would borrow me money to buy there?
Thanks in advance!
Adam
Adam W
Probably none in Australia, unless you had another property here as security.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ausdmx,
Have you been to Dubai?? i would take a trip out there to see the city for urself before you make any financial decisions.
I wouldnt buy in Dubai.
Hi,
Try HSBC, they seem to be the most flexible when it comes to overseas investment funding.
They can also help with bank accounts etc.
Why Dubai? Are you looking at new build?Hello ausdmx
Here is a link to a thread about Dubai. It may be worth your while to read the opinion of a couple of people who know Dubai from either having been there or from living there.
https://www.propertyinvesting.com/forum/topic/24511.html?SearchTerms=Dubai
Hope this helps [smiling]
ElkaJust talked with a friend of mine who has been living in Dubai for 4 years he said he just talked with a very high profile investment adviser in Dubai who said I will give you one piece of free advice. Do Not Buy in Dubai. He explained that there are hundreds of overpriced and empty apartments on the market at present and he feels there is a big downfall not too far away in the property market. I think you should do some very serious research on this area before investing. I believe some banks are also starting to pull out of investing there due to market conditions. But of course it is your choice and good luck in whatever you decide.
If anybody is considering Dubai, Check out this website http://www.worldwidefrontiers.com
Hi
We are currently living in Dubai and are seeing massive construction and wonder what will happen to the market.
We pay an absolute fortune in rent and it has just gone up despite the rent cap that has been introduced. Basically our landlord said pay the increase or he plans to sell the apartment ( basically pay or move out ).
We have seriously considered purchasing and if you need finance this is the local mortgage broker we used. http://www.propertyfinancelink.com/ and they were very helpful. If you take a loan in another currency realise the risk is not only with the property but also with the exchange rates.
In the end we continued to rent for another year because everybody is so uncertain and we needed at 20% deposit for an apartment plus a heap of fees and in the end was just too much.
When you think of who will come here to live in all the development the list is endless. Alot of people from the sub continent because of good opportunities, people from other middle eastern places because of war. Baby boomers who want a second home to excape the winter and so on.
Friends of ours brought a villa in one of the first developments three years ago and the price is now 4 times the original. Will the market hold the value? Will prices continue some sort of increase? Will there be an over supply? IWho knows, only time will tell.
There is still an absolute lot of development to be done over the comming years. There are still alot of foriegn companies that are still choosing o go ahead with more development, showing their confidence.
I am of the opinion that good value can be found anywhere and its more about what you choose to invest in and not where that will propvide the return in the long run.
Having been in Dubai mid last year regarding a property development job there are a few things to think about: The rental market is being driven hugely by construction i.e. expats in property & finance and skilled/unskilled labour for construction work. While they continue to build the market is reasonably self sustaining. If the construction stops or slows significantly (not likely in the near future – Nakheel alone is building a new city for about 1.4 million people) then alot of people will simply leave as the work will dry up i.e. the rents will crash and prices will follow. The dubai government is working hard towards turning dubai into a world trading post (research their freezones) and major tourist attraction – whether this will be achieved is not certain – if it is achieved then a slow down in construction will be largely mitigated by the increase in these areas . There is a very mixed quality of developers up there …. do your research on how many developments they have completed and try and view some of the completed buildings, talk to the owners/occupiers etc before buying. I have never heard of a development being completed on time in Dubai (seriously!) so factor in plenty of time extension risk (12 months would be safe but I have heard of buildings being completed more than 2 years late).
All that said Dubai is a great city – and you get a residency visa with your purchase (doesnt allow you to work but allows you to live there if you want).
There has been ongoing speculation of a very decent price correction (read crash) in Dubai – do your research and if you see the crash as coming then cash up and wait for it cos there will be alot of bargains to be bought!!
Use HSBC to fund your purchase if you go ahead as they are one of the prevelant banks over there and can be easily managed from abroad.
Goodluck!
We live in Dubai, own property here, financed some of it and have paid a % of some of it as they are still under construction. One small townhouse is being let out at Dhs110,000 pa, another is due for completion end of 2007 and we will let this one out at not less than Dhs150,000 pa.
The bottom line is, just be careful what you buy and who you buy from. There is still room in the market for villas and townhouses from reputable developers. Just to give an example of demand, EMAAR, one of the major players here, released 159 small villas a few days ago. You had to register the day before and they only took 1,000 names. There was a queue from 7am until they said enough. The next day they did it like a raffle and only picked 150 of the names. The price started at Dhs2,500,000 for 2500ft2. You needed 10% immediately, so theres no shortage in the market here of cash.
Re supply and demand. Yes, there are an enormous number of apartments being built, but according to the statistics released a few days ago, there are 250,000 new residents since end of 2005. Apartments being delivered this year(and villas but these are a small number) have dropped by 30% due to construction delays. The new number is about 25,000. Compare this to 250,000!
Sure, apartments are becoming harder and harder to sell but if you have a good product aimed at the right market, there is demand because rents are so high.
But they have capped rent increases at 7% so that might quell the investors interest a little.
I believe, specifically with villas, Dubai still has a couple of years to go of growth. Even if it grows at 10%, its still doing better than many other places, plus your rental yields are high.
Just my tuppence worth.
You would have to get a lender here in Dubai, which is possible – you don’t need to be a resident here to get a home loan with a local lender (for some you do- just depends on lender). But you need to check which lenders will lend for the development you are looking at.
For a start, only certain areas in Dubai are designed for foreign (non-local) ownership. And then within these areas, each bank has a list of developments or developers which they wil lend for – which is not standard – varies from bank to bank. The banks all list the developments they will lend for on their websites.
Generally you won’t find a loan for more than 80% LVR, and usually 70% for units. The loan terms are often limited too – 15 years for units and 20 years for villas. But this is open to negotiation. They will not lend such that the loan term brings you past your 65th birthday either (for some lenders it is 60 years age – this is because the enforced retirement age is currenty 60, but they are changing it to 65, and they don’t want you out of work and not able to repay).
I would be careful choosing property here. Things are necessarily as good as they might look when advertised. I agree with the comments made by rach001. You can make a good buy here, but you can also spend way too much on a poor quality development. i have seen 2-bed apartments in Jumeirah Beach Residences advertised for between 3 and 5 million AED. And all you get is a tiny, poor quality (Mertion-style) unit, in a development of 7000 units- hardly gives you the scaricity value you are after. And above all else, the price you are paying is way above market compared to what else you can buy in Dubai right now. There are places you can get good 3 and 4 bedroom villas for that sort of money.
Anyway, just my opinion.Here are some websites for finance to look at:
http://www.tamweel.ae
http://www.lloydstsb.ae
http://www.hsbc.aeSarah
You must be logged in to reply to this topic. If you don't have an account, you can register here.
