Expenses concealed during transactions in Dubai property
Dubai is a dreamland for Property investors all over. Its nascent commercial feasibility and flourishing real estate market proffers a blend of magnificent prospects one needs in property investments. One main reason that highlighted Dubai property was a tax-free income and the right to freehold for foreign real estate investors. However the condition doesn’t emerge that attractive after one goes through this process of transaction, reason being the concealed expenses that exhibit themselves during the course of transaction in the Dubai property market.
All the property Dubai developers and Dubai property dealers levy a percentage of service tax on property Dubai along with a share of registration fees for freehold of Dubai property. In addition to the one per cent tax that Dubai real estate investors pay to Dubai Land Department, they have to pay an additional tax to their developers or property dealers in Dubai.
With such an incursion of taxes and hidden charges in Dubai property market, the confidence of buyers in property Dubai is drooping. They feel that the Dubai property market has become less pellucid and hence one cannot rely on it. This might lead to a plunge in transactions in property Dubai. Dubai Land Department is set out to examine the aspects related to these service charges in Dubai real estate industry.
Anyone who buys a new property in Dubai has to pay a registration fee of two per cent in addition to the development fees and if this was not enough there are further administration fees and DHLs to be paid.
A property investor often feels embittered in such a case and his interest in property may dwindle. One alternative to combat such hidden costs is to increase the base price of property in Dubai initially. This would avert any hidden costs and hence won’t dig a hole in buyer’s pocket. Apart from this, a trust factor will develop between property investors and seller with the advent of transparency in Dubai property market.
A “Letter of No Objection” needs to be issued whenever one resells their property or transfers it to someone else. This letter is issued by the real estate agents or property dealers of that area and they levy an addition service tax with each term of transfer. In addition to it, there is also a percentage of administration charge to be paid by the new investor in the Dubai property market.
The service charges on property Dubai vary from dealer to dealer. Where DH of 1000 is to be paid to Nakheel International City, Emaar costs huge amount of DH 5000. Many property investors in Dubai feel that the administration and service charges are inordinate and should not be charged.
Nakheel has made it a rule that whosoever buys one property in Dubai must get it registered and ought to pay a service charge of two per cent even if the land is being transferred from one customer to another.
All the property Dubai developers and Dubai property dealers levy a percentage of service tax on property Dubai along with a share of registration fees for freehold of Dubai property. In addition to the one per cent tax that Dubai real estate investors pay to Dubai Land Department, they have to pay an additional tax to their developers or property dealers in Dubai.
With such an incursion of taxes and hidden charges in Dubai property market, the confidence of buyers in property Dubai is drooping. They feel that the Dubai property market has become less pellucid and hence one cannot rely on it. This might lead to a plunge in transactions in property Dubai. Dubai Land Department is set out to examine the aspects related to these service charges in Dubai real estate industry.
Anyone who buys a new property in Dubai has to pay a registration fee of two per cent in addition to the development fees and if this was not enough there are further administration fees and DHLs to be paid.
A property investor often feels embittered in such a case and his interest in property may dwindle. One alternative to combat such hidden costs is to increase the base price of property in Dubai initially. This would avert any hidden costs and hence won’t dig a hole in buyer’s pocket. Apart from this, a trust factor will develop between property investors and seller with the advent of transparency in Dubai property market.
A “Letter of No Objection” needs to be issued whenever one resells their property or transfers it to someone else. This letter is issued by the real estate agents or property dealers of that area and they levy an addition service tax with each term of transfer. In addition to it, there is also a percentage of administration charge to be paid by the new investor in the Dubai property market.
The service charges on property Dubai vary from dealer to dealer. Where DH of 1000 is to be paid to Nakheel International City, Emaar costs huge amount of DH 5000. Many property investors in Dubai feel that the administration and service charges are inordinate and should not be charged.
Nakheel has made it a rule that whosoever buys one property in Dubai must get it registered and ought to pay a service charge of two per cent even if the land is being transferred from one customer to another.
posted by Property Reporter at
11:59 PM
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