Buying property and renting

[Callahan]

Hi,

thinking of buying a villa and renting it, preferred Arabian Ranches or Marina.

What kind of costs will appear?

- are there any fees for the transaction?

- are there any service fees e.g. Arabian Ranches and Marina

- are there any taxes or fees or other annual costs which have to be paid by the landlord?

Any ideas?

Thanks in advance.

[Jumeirah Jim]

You'll be lucky to find a villa in Dubai Marina as there are only a handful, usually townhouse style next to apartment complexes such as Marina Promenade.

Buying you'll pay 2% of the value/price to register your purchase at the Land Department and a few thousand AED to the developer for the NOC to do the transfer. You can negotiate with the seller who pays these but the seller usually pays for the NOC and the buyer pays the registration fees.

You and/or the seller will also have to pay the agent's commission unless you manage to do a private sale.

Once you've bought they'll be service charges to be paid each year. These vary hugely between developments in the Marina and will be different again in the Ranches. You need to make thorough enquiries with the developer so that you know how much you are in for. They'll also be chiller fees but you should be able to pass those on to the tenant. Same with the housing fee payable to DM - the tenant should register for the DEWA account and pay this.

[Helios]

As mentioned by Jumeirah Jim, in addition to the 2% of Land dpt registration fees you'll need to pay for the agent commission which is between 2 to 3% and usually left to the buyer.

For the maintenance fees, for example an Emaar 1BR appartment in Marina costs around 18.000/year.

[Callahan]

Originally Posted by Helios

As mentioned by Jumeirah Jim, in addition to the 2% of Land dpt registration fees you'll need to pay for the agent commission which is between 2 to 3% and usually left to the buyer.

For the maintenance fees, for example an Emaar 1BR appartment in Marina costs around 18.000/year.

18.000 AED per year? Wow, that is generous....a 3 BR is then nearly 50k a year?

@ Jumeirah Jim: thx for your informations..

Anybody knows the fees for the Arabian Ranches?

[Helios]

Service charge in Arabian ranches was 1.78dhs per sq foot back in 2010, not sure if there was any hike since.