Who Are You?
Openshore are Dubai property specialists with office in the UK and Dubai. In the UK, our head office is just off the M65 in Lancashire. In Dubai, we are strategically located in the heart of the new developments on Sheikh Zayed Road.
What Do You Do?
Our primary role is to provide help and advice to UK buyers wanting to purchase a property in Dubai. We deal with the whole purchase process by selecting the right property, dealing with all the paperwork, monitoring the build process and dealing with all your enquiries. If necessary we can also re-sell or let out your property on your behalf.
Am I Buying Direct From The Developer?
Yes, all of our customers buy direct from the developer. The contract is with the developer and payments are made to the developer via the secure ‘Clients Account’ facility. All developers pay a small fee for us to service your account in the UK. This fee is very similar amongst developers and thus there is no incentive for us to favour any particular developer. Many of our customers are repeat buyers and our main focus is to ensure you get an excellent return on investment and buy more in the future.
What are the Advantages of a Clients Account?
Money in the clients account belongs to the customer and such a facility also gives customers greater influence. Please ask for the ‘Client Account’ payment process sheet for full information.
How Can I Pay The Lowest Price?
The price you pay for a particular property is fixed as this price is normally set by the developer, irrespective how you buy, as you will always be purchasing direct from the developer. If you are being offered discounts on property, this may indicate that the property is proving difficult to sell and may entail a higher risk or lower investment potential. Our experience is that the majority of the properties in a good development sell quickly, shortly after launch. Then the price only increases. You can pay the lowest price by buying sooner.
Which Developments Do You Recommend?
We are independent and are not tied into particular developers or developments. We will look at your needs and objectives and then make recommendations to you. However, every month, our Dubai team recommend developments which in their view will offer the best value in terms of investment return and which will be easier to re-sell should you wish to do so.
Which Type of Property Is Best?
Again, this depends on your objectives. For most of our customers who are investing for capital growth and rental income, residential apartments are offering the best return and tend to be more affordable than Villas as they are smaller and thus lower priced.
What Are The Risks Of Buying?
All Dubai developers now have to use ESCROW accounts in a Government specified way, so your money is safe, and the risks in buying off-plan property are very low. The main risk is that the property selected at the time of purchase was not good value and the investment returns will thus be poor. The other risks are delays in property being built which can be up to 12 months. However, wherever this has occurred in the past, the property price has continued to increase and customers have not lost out. Additionally the developer is obliged to compensate for long delays.
The Dubai Government aims to make property purchase easy and pain free, as it is in their interest to ensure worldwide consumer purchasers do not loose out, and confidence in Dubai property remains high. The new ESCROW law has effectively taken the risk out of buying in Dubai.
It is obvious that you will have problems if you fail to make timely payments as the developer can ultimately take the property back if payments are not made despite warnings. So ensure that you have, or will have the funds to do this. In rare instances, we have had to re-sell property quickly because of this issue and have still managed to ensure that our customer did not loose out.
Do I Need To Instruct A Solicitor?
No, you do not need to do this. Most of our customers do not use a solicitor. We can normally explain the developer's contract and answer any questions. A few of our customers have used a solicitor and all they can do is just offer advice as there are no other legal transactions to be done other than signing the standard developers purchase agreement. In some cases use of a solicitor (who is not familiar with Dubai purchases) has delayed the purchase which has thus resulted in a price increase. If you use a solicitor you will be liable for their fees.
How Do I Reserve The Property?
Once we have agreed the property to be purchased, then it needs to be quickly reserved (as good property sells fast). This can be done by payment of a reservation fee and completion of the reservation form.
When does the property become mine?
The property becomes yours when you sign the purchase agreement and make the first payment. However, at this stage you will have obligations to make further payments on time, and may not be able to re-sell until some minimum level of payments have been made (e.g. 30%).
Can I Get A Mortgage?
UK residents can get a mortgage from some UK banks, but only for selected Dubai developments. The banks have agreements with certain developers (who may provide additional guarantees or fees to the bank) to do this. Our experience is that at present, there is not enough competition in the market and the developments where many mortgages are offered do not tend to be very good value. In some cases the mortgage is being promoted to help sell a property which is selling slowly. Additionally obtaining a mortgage may delay the purchase, resulting in a price increase. As the market grows this is changing and every month more developments are launched where mortgages are available. Please give us a call if you need a mortgage and we can give you the most appropriate advice.
Many of our customers have re-mortgaged their existing property to raise the investment funds and this can be better as then you are not limited to just the developments where mortgages are being offered.
Can I Get A Residents Visa?
Yes. If you buy Freehold property in Dubai, you will be able to get a residents Visa for you and your family. The property needs to be appropriate to your family size. E.g. you can not have a visa for a full family with several children if you are buying just a small one room Studio. In any case UK passport holders can visit Dubai for 2 months (Visit Visa) without any problems, as the visa is issued at the airport.
How Are Payments Made?
The property is priced in UAE dollars. Your bank can arrange for payments to be converted to UAE and transferred to the developer's account. In most cases this will be easier if you open a foreign exchange account at your bank. If you are buying off-plan, payments will be structured over a period of usually around 2 to 3 years (e.g. approximately 10% every three months).
What If I Want To Re-Sell?
Normally, you can re-sell your property after you have paid for about 30% of the property purchase price. If you want to re-sell before the property is complete, you will need to inform the developer and pay a transfer fee of usually 2% for them to make the contracts to a new party.
You can also instruct us to re-sell your property and this can be done by our sister property re-sale division without you having to go to Dubai.
What is a Residents Association?
All the property owners of a particular development become members of the residents association and follow the standard rules as laid down within the purchase agreement. You become a member of the association when you take possession of the property. The Residents Association is ultimately responsible for the communal services and the mutual harmony of the development community and works on behalf of all the residents.
Who is the Services Manager?
The services Manager is a company appointed by the Residents Association. In the first few years this appointment is normally made by the developer or the developer itself may be the Manager to ensure continuity. The manager overseas all the communal tasks such as maintenance of the communal areas, security, gardens, refuse and general repairs. They report at least annually to the Residents Association and also have to produce audited accounts on how service fees are spent.
What Are Service Fees?
The Service Manager will charge a fee for each flat (normally proportional to the size of the flat) in order to pay for the communal services and security. This charge will vary depending on the levels of services and is normally between UAE 5 to 15 per sq ft (or £1000 to £2000 for an apartment per year.) If you rent the property, this may be paid for by the tenant or out of the rental income. This only becomes payable when your property is ready.
