Overseas Property:
Buying & Selling
Whether you are thinking of selling or buying a house abroad, it’s important to understand that the process may be different from that of the process in your own country. The world is now more accessible than ever before and so, whether you are buying a second home, investing in an up and coming market like Dubai’s property market, or are looking to take advantage of house prices, you need to ensure you make the right decisions to avoid the pitfalls that can await. A key factor in selling or buying property abroad is the foreign exchange rates, and transferring money overseas. When dealing with overseas property investment, especially from the UK, you will need to exchange currencies and send and receive funds from abroad. Foreign buyers face unique challenges and conditions when obtaining mortgages in the UAE, such as higher down payments required by banks. If managed well the process can be smooth and beneficial, but without expert guidance you can end up losing thousands of pounds from the transaction. This is where NewbridgeFX can help you to manage the risks and guide you through the process.
Overseas Property
Key Factors: Dubai Property Market
Speak to a specialist at NewbridgeFX who can guide you through your overseas property transaction to buy property overseas. Understanding the process of property purchases, particularly in the UAE, is crucial.
They can also provide insights into the opportunities and regulations for foreign investors interested in purchasing property in Dubai.
Exchange Rates
You want to receive the best possible exchange rate when converting currencies. For every £100,000 a 1% move will have an impact of £1,000, so not achieving the best possible rate can be expensive.
Currency Rates
Buying property overseas includes the additional process of the currency rate fluctuations, that can be a hinderance as solicitors and the notaries are conducting the legal proceedings. If you were to buy a property worth AED 800,000 and were putting a deposit down, where you could get AED 4.5 to the pound, this property would now be worth £171,673 roughly. This sounds great until the currency markets fluctuate before the legal proceeding have finished and the exchange rate is AED 4.00 to the pound. Your AED 800,000 property would now cost you £200,000, resulting in a loss of £28,327.
If you are unable to find this money it can mean losing out on the home, you’ve always dreamed of. There are ways to protect yourself from exchange rate volatility, from forward contracts, spot contracts and even a market order. Speak to one of our specialists to find out which option would be the right fit for you so you can live the dream of buying a house abroad.
Payments
You will need to make payments to solicitors, the owner or the seller, and anyone else involved in the property transaction. You shouldn’t be paying payment or transfer fees to send or receive money.
Timing and Property Value
The process of buying a house overseas or selling can take a long time. You need to ensure that foreign exchange fluctuations do not impact you in a negative way. Risk management tools are useful to mitigate these risks and give you peace of mind
Eligibility And Requirements
What Are The Requirements To Buy A Property Abroad?
Buying a property abroad can be a complex process, and it’s essential to understand the requirements and eligibility criteria before making a purchase. In Dubai, foreigners can buy property, but there are certain restrictions and requirements that must be met.
Eligibility criteria for foreigners
To be eligible to buy a property in Dubai, foreigners must meet the following criteria:
- Hold a valid passport
- Have a minimum income of AED 15,000 per month (approximately USD 4,000)
- Have a minimum deposit of 25% of the property value
- Meet the requirements set by the Dubai Land Department and the Real Estate Regulatory Agency (RERA)
It’s also important to note that foreigners can only buy property in designated freehold areas, such as Dubai Marina, Downtown Dubai, and Palm Jumeirah. These areas are specifically allocated for foreign ownership, ensuring that international buyers have access to some of the most desirable locations in the city. Understanding these requirements and ensuring you meet them is crucial for a smooth property purchase process in Dubai.
Overseas Property:
Considerations
What do I need to consider when buying or selling an overseas property with a real estate agent?
Selling and buying property abroad is not a process that you undertake without prior research or before seeking advice, because there are many factors to consider. One wrong decision could impact your finances and so, you need to ensure you get the right advice and guidance. Key factors such as tax implications, the legal system, the processes, and the foreign exchange market can drive the entire process. For instance, acquiring freehold properties in Dubai is straightforward, particularly for foreigners, as they can obtain freehold ownership without restrictions in designated areas.
Having to contend with this can prove challenging and that’s why you need to get help where possible. This is particularly true when it comes to navigating the complex world of foreign exchange rates, and making or receiving payments. Freehold property ownership has made places like Dubai appealing to expatriates and non-residents as a viable investment option. While the process as a whole might seem simple on the outside, it is more complex than that and that’s why you need to take control of the process of transferring money.
To achieve this, there are many things to consider such as exchange rates, transfer fees, efficiency, and the ability to manage what could be many different currencies.
Overseas Property:
Bank Rates
Don’t Succumb To Bank Exchange Rates
It might seem simple enough to make the relevant transfers or receive payments through your bank. But in practice, the exchange rates are not going to be favourable and you will end up paying more or receiving less. If you opt to use a foreign exchange specialist, such as NewbridgeFX, then we will help you to achieve the best results based on experience and real-time information.
What’s more, it will be possible to put in place risk management strategies. The strategies will be beneficial to our clients and based on their best interests. Such as using spot contracts, forward contracts, or market orders, or a combination of these, to achieve the best possible price, exchange rates, and service.
Along with this, if you choose to use a specialist service then you are not going to feel as only part of a large database. As a client, you are going to receive support and expert guidance tailored to your needs, which will ensure the process is effective and efficient while providing complete confidence.
The transfer of funds for overseas property investment can come with risk. Yet you can mitigate those risks by making the right decisions and relying on expertise. With competitive rates, market insight, and experience, you can ensure that you benefit and achieve the best possible price and service.
Choosing The Right Location
Top Areas To Buy Property Abroad
When it comes to buying a property in Dubai, the location is crucial. Here are some of the top areas to consider:
- Dubai Marina: Known for its luxurious lifestyle and stunning views of the marina, Dubai Marina is a popular choice for foreigners. It offers a vibrant community with a range of amenities, including restaurants, shops, and entertainment options.
- Downtown Dubai: Located in the heart of the city, Downtown Dubai offers a range of properties, from apartments to villas, and is close to major attractions like the Burj Khalifa and Dubai Mall. This area is ideal for those who want to be in the center of the action.
- Palm Jumeirah: This iconic man-made island is home to some of Dubai’s most luxurious properties, with stunning views of the Arabian Gulf. Palm Jumeirah offers a unique lifestyle with private beaches, high-end resorts, and exclusive residences.
- Jumeirah Village Circle (JVC): A popular choice for families, JVC offers a range of properties, from apartments to villas, and is close to major attractions like the Dubai Mall. It provides a more suburban feel while still being conveniently located.
- Business Bay: Located in the heart of Dubai’s business district, Business Bay offers a range of properties, from apartments to offices, and is close to major attractions like the Dubai Mall. This area is perfect for professionals looking to live close to their workplace.
When choosing a location, it’s essential to consider factors such as proximity to work, schools, and amenities, as well as the overall lifestyle and community. Working with a reputable real estate agent who has knowledge of the local market can guide you through the process of buying a property in Dubai. Additionally, researching the property market and understanding current trends and prices will help you make an informed decision.
In terms of property value, Dubai offers a range of options, from affordable apartments to luxurious villas. The property value can vary depending on the location, size, and amenities, but on average, apartments in Dubai can cost between AED 500,000 to AED 5 million, while villas can cost between AED 1 million to AED 10 million. Overall, buying a property in Dubai can be a great investment opportunity, but it’s essential to do your research, work with a reputable real estate agent, and understand the local market and regulations.
FAQ:
Buying a property
Answer
Yes, you can set an exchange rate alert, advising us what your target rate is, or at what level you would like us to notify you. If the exchange rates move in your favour and the specified level is available, we will notify you and you can decide whether to book a transaction or to keep watching the market.Answer
Yes, a spot contract can is useful to send money overseas when the payment is due. You will receive a spot rate at the time of booking the transaction, and the payment settled immediately.Answer
Yes, this is a good way to reduce the risk of currency movements. You may decide to buy a property overseas today, but may not need to send any money for many months. During that time the exchange rates would have fluctuated. A forward contract enables you to secure an exchange rate today, but for settlement at a future date thus removing any risk of exchange rate movements.Answer
Yes, you can specify the exchange rate you would like to achieve before sending money to buy the property. Unlike an exchange rate alert, if the rate is available in the market then we will immediately book the transaction, and settle the payment upon receiving your sold currency.Answer
Yes, we provide tailored solutions to suit your requirements. The best approach depends on many factors which we will discuss with you in-depth. Such as your budget, attitude to risk, timeframes, and the structure of buying the property.Answer
The timeframe to transfer funds abroad does not differ based on the value of the transfer. Once you confirm the transaction, and you send the funds, the transaction will settle immediately and can arrive in the recipient’s account the same day.Products:
Manage Risk
NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients when sending money overseas, and are ways for businesses, and individuals, to manage and mitigate currency risk.
Spot Contract
Lock in an exchange rate to settle immediately. Funds can be received the same day for most currencies.
Forward Contract
Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.
Market Order
We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.
Rate Alerts
Set an alert for phone or email notification when a rate has been achieved to take advantage at the best time.
Benefits:
NewbridgeFX
Multi-Currency Account In Your Company Name
Receive funds from your customers in to your own named collection account, using one account number for all currencies, or a local in-country account number still in your company name.
Create And Manage All Your Beneficiaries
Add and manage your beneficiaries, perform bank account validation & verification checks as you enter your beneficiary details & bulk upload multiple beneficiaries via a CSV file.
Make Fast & Secure Payments To Over 200 Countries
Real time Swift and Local payments are settled the same day, for most currencies, within minutes of processing. Live GPI Payment tracking capabilities allow you to keep updated on the payment status.
Multi-Currency Balances
Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.
Convert Over 100 Currencies, 24/7, Using Multiple Devices
We provide informative, up to date market news, including updates on currency movements, upcoming economic events and announcements that impact the foreign exchange market.
Real-time Reporting And Tracking
View and track all conversions, payments and incoming funds using our online platform, and receive email notifications when funds have been received, conversions processed and payments released.