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The Benefits Of Investing In Freehold Property

Posted by cafedetech on June 3, 2024
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Buying a freehold property in Dubai offers exclusive ownership rights and gives the owner complete control of purchased property. An owner of a freehold property has the right to use that property as per his discretion without any interference from the government. He can make alterations or improvements without seeking any permission and also generate profit from his freehold property by renting it out.

Real estate investment is considered one of the best methods to increase wealth, multiply income and obtain financial security. It acts as an inflation hedge and also the value of properties increases over time. Given the development and real estate potential of Dubai’s property sector, it is deemed one of the most favorable real estate investment places. 

Your Property, Your Rules: The Concept Of Freehold Property

A freehold property is a type of property that one owns outright. It is a property that gives complete ownership rights to the owner. There are two types of properties: freehold or lease. Freehold property is a sort of property that extends complete ownership rights to the property owner. The owner owns the property and also the land the property is situated on. The data accentuates that 68%  of transactions in 2023 were freehold transactions, depicting investors’ interests.

Primarily, a freehold property is a type of property that an investor owns completely. A property that is in the exclusive control of its owner is called a freehold property. The owner basically has complete and permanent ownership rights and there is an expiry date on the ownership. Property owners can sell or rent their property based on their personal preferences and no one can dictate his decision of selling or renting his freehold property because he has full control over how the property is used.

Here Are Some Basics To Comprehend The Concept of Freehold Property:

  • A buyer gets exclusive ownership rights
  • He becomes 100% owner of a freehold property
  • The new owner can freely use a property based on his preferences 
  • Buying a freehold property is a bit expensive option
  • The property owner is not required to pay taxes or duties
  • Obtaining a loan becomes easier with a freehold property

The Benefits Of Investing In Freehold Property:

Ownership Rights

Dubai’s freehold property framework allows investors to have complete ownership rights. Not only locals but foreign nationals can also purchase properties in freehold zones of Dubai to obtain comprehensive ownership rights of their purchased properties. Owning a freehold property means you are the boss and you have the ultimate power to use that property as per your needs and requirements.

Easy Transfer

An owner can transfer a freehold property to his sons or heirs quite easily. Transferring a freehold property is a hassle-free process. This is not the case in leasehold properties because it involves a lot of complications. So, if you hold a freehold property you can easily transfer the ownership rights to a single or multiple heirs, ensuring your property goes where you want it to.

You enjoy Exclusive Rights

This investment frees you from any rules and regulations set by developers or authorities. If you buy a freehold property, you are free to use it based on your preferences. Though you need to consider local property-related rules and regulations, no one can manipulate your use of your freehold property.

Residence Visa

If you invest in Dubai’s property sector and buy commercial or residential properties, you become eligible to apply for a residence visa. The Dubai government issues residence visas to attract investments. So, if you own a property in Dubai or have a freehold property, it means you can extend your visa and stay for a longer time. 

High Return On Investment

Investing in freehold property in Dubai enables an investor to generate high ROI. Property owners can generate profit through rental incomes or by selling their purchased properties. Furthermore, several flexible payment plans in Dubai facilitate real estate buying and selling. For example, a post-handover payment plan allows property owners to use rental income to pay the remaining expenses. Given this, buying a freehold property is relatively easy and smooth. 

Preferred Collateral

With a freehold property, you can easily obtain a loan. Freehold properties can be mortgaged to get loans from lenders. Because of complete ownership rights and indefinite value, lenders prefer to use freehold properties as collateral when property owners seek loans.

Tax Advantages

Dubai’s government does not impose taxes on property owners, saving a considerable amount of money each year. Freehold property owners are not liable to pay a number of taxes in Dubai, reducing the financial burden and allowing them to capitalize on Dubai’s property sector. Furthermore, tax evasions also increase the potential benefits of owning freehold properties.

Freehold Properties Are Saleable

If you own a freehold property in Dubai, you can sell it to any person. You have complete rights to use or resale your purchased property without getting any permission from authorities. Whenever you decide to rent or sell it, you can rent or sell your property to anyone. 

Freehold Property Value Does Not Depreciate

Owning a freehold property extends multiple benefits and it is deemed as an invaluable asset. Furthermore, the useful life of freehold properties is unlimited. This factor constantly increases the value of such properties and does not let any decrease in the value and worth of freehold properties. 

Considerations To Buyer Freehold Property In Dubai:

If you intend to invest in Dubai’s property sector or buy freehold real estate then you should consider the following points to get the best investment option.

  • You must be clear in your mind about your preferred property type. An investor must know what he is looking for. A clear understanding will help narrow down the scope of your research and enable you to find a property at the earliest
  • Location is the most significant factor to consider because it determines the value, worth and ROI potential of a property. Research different areas to buy freehold apartments or villas for sale in Dubai. Choose an area that suits your interests and where you can have access to maximum amenities.
  • Whether you intend to buy a ready-to-move-in property or buy off-the-plan property, it is imperative to understand the legal framework. You must ensure that your all transactions are registered with the Dubai Land Department (DLD) no matter whether you are buying an apartment for sale in Dubai or any other property
  • Financial considerations are also necessary. Freehold property price depends on a number of factors such as the type and size of property, location, area, development status, and the availability of resources. First, you need to analyze your financial means and then choose a property that does not cross your budget line
  • Keep yourself informed about real estate market trends in Dubai. This understanding is quite helpful in making informed decisions. Furthermore, if you understand the market dynamics, you can capitalize on Dubai’s real estate market and find the most affordable option.

How To Buy A Freehold Property In Dubai?

  • The journey of buying a freehold property in Dubai, UAE begins with research. With the help of Kelt & Co Realty’s real estate agent, you can find the most suitable property to invest in. A real estate agent also ensures whether a property aligns with the interests of the investor. Besides, he also analyzes the locational advantages of real estate and the benefits of buying a particular property
  • After finding a property, a contract or sales and purchase agreement is created between the buyer and seller. It contains terms and conditions of buying a property and other information related to a particular property such as property type, price of a freehold property, payment schedule, etc.
  • Following that, both buyer and seller sign the agreement. Before signing the agreement, make sure you have read and understood all things mentioned in the contract to avoid any hassle. A buyer is also required to pay a down payment at this stage.
  • Foreign investors are also required to obtain a No-Objection Certificate (NOC) from the DLD to ensure that they are eligible to buy freehold properties in Dubai. Obtaining a NOC from the Dubai Land Department means you are going to buy real estate without involving any legal dispute.
  • Now, the property is transferred to the buyer. Both parties are required to present at the DLD office for the property transfer process. The DLD ensures that this transaction is legally binding and it also maintains and updates the record of this property. Now, the new owner will receive the title deed.

The Final Thought:

Dubai is considered one of the best real estate investment destinations mainly because of tax benefits, luxury real estate investment options, modern infrastructure, favorable policies and investment ambiance, etc. Here you can choose between freehold or leasehold properties. A freehold property investment in Dubai offers 100% ownership rights to an investor, allowing him to use that particular property as per his needs and requirements. Furthermore, freehold properties are saleable and also it is easy to get a loan if you have a freehold property in Dubai because of complete ownership and indefinite value.

Considering To Buy A Freehold Property In Dubai But Hesitating? Let Us Guide You:

Kelt & Co Realty is a real estate company that facilitates real estate transactions in Dubai and helps people buy, sell, and rent properties. If you intend to purchase ready-to-move-in or off-plan freehold properties in Dubai then you should take advantage of our expertise. Our professionals can find the most suitable option based on your distinct needs and preferences.

FAQS:

Where can I buy freehold property in Dubai?

You can choose from a wide range of properties if you want to buy a freehold property in Dubai. The freehold areas in Dubai are known because of various developments such as apartment towers, villas and townhouse communities. You can find a freehold property of your interest in several freehold zones that include but are not limited to Downtown Dubai, Dubai Marina, The Springs, and The Meadows.

Why should I consider buying a freehold property in Dubai?

Buying a freehold property offers exclusive ownership rights to the owner of a property. The property owner can also rent or sell his property whenever he wants. Furthermore, he is not bound to pay taxes and also it is quite easy to get a loan if you own a freehold property in Dubai, UAE.

What are the advantages of a freehold property?

A buyer owns the property outright and he does not need to be worried about the lease running out. The owner enjoys exclusive ownership rights and also he can consider modifications and alterations whenever he wants without considering any permission. 

Is a freehold worth money?

Buying a freehold property in Dubai is considered a decent investment. It offers a high rental yield and also the property owner can decide to sell his property to anyone. Along with that, by owning a freehold property, one can obtain a loan easily.

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