Off plan property in Dubai is growing in popularity as a popular investment option. One reason for this is Dubai’s strategic location at the crossroads of the Middle East and Asia. Another reason is the fact that it is a cheap place to live and provides a great lifestyle while doing so. With Dubai being one of the seven destinations selected by the Human Resource Investment council as one of the best places to work and live in the world, you can see why it is becoming a popular investment option. Off plan property in Dubai is something investors have discovered is a good way to purchase property without having to pour all the money and time into an on plan property. Here are some of the advantages of buying an off plan property in Dubai.
Off plan property in Dubai has all the amenities that you would find in a modern, up to date resort and city. There are markets, restaurants, bars and many of the same activities that you would find. The main advantage of purchasing Dubai off plan property is that you can rent out the property. This works out really well because the tenants are already used to living here and will not need any introduction to the city or the area. They will quickly settle in and within a short space of time be able to rent out the units they have purchased and you are able to make a killing from the rental income.
An off plan property in Dubai offers the same tax benefits that an on plan property would, so much more affordable. The properties themselves come with property management and tax benefits and are often less expensive than an on plan home or apartment. The main reason for the cheaper price is that there is no planning permission needed on the properties themselves, so there is also less planning to do. It does mean that the buyer will have to keep an eye on things like safety issues and planning but it is still a bargain when you compare it to an apartment or house.
Another advantage of buying Dubai off plan property is that the Dubai authorities offer incentives to first time buyers who have plans of buying property in Dubai. The first time buyers of off plan apartments are entitled to 15% of the purchase cost of the property. There is no tax on this amount and it is exempt from income tax in most cases. This means that not only are you saving money on the purchase but you are also able to build up some nice equity at the same time. This equity can then be used to pay off any taxes that you may owe at the end of the year.
The biggest disadvantage to the off plan property is that the tenants are not subjected to the same employment and social security laws that residents are. If something were to happen to a tenant they are not protected under any laws and there are no guarantees that they will receive decent rental income. You will also have to take care of any possible repairs that may be required by the tenants or by the local authorities, and this can add quite a bit onto the expenses that you have to incur.
Overall, off plan properties in Dubai can be a great option for investors who are looking to save money in the process of buying property. However, off plan property is not without its disadvantages. If you plan on purchasing Dubai off plan apartments or villas, be sure to do your research and get all the facts about the laws that you will need to abide by in the city. It is possible to get good advice at Dubai property agencies but you should make sure that you know exactly what you are getting into and that you fully understand the contract that you are entering into with the developer. Off plan properties in Dubai can be a great way to spend your money but you must make sure that you fully understand how the system works. Port de la mer apartments in Dubai are also a good option.