The old saying "Location, Location, Location." I have property in freezones which is returning profit on investment of 50% conservatively over 3 years (residential) and 70% conservatively over 3 years commercial. The savy investor is still investing in Dubai, as so many large multi-national comapnies have done.

The freezones are the key. Property in the freezones is still making excellent investment. Areas outside freesones are struggling,as land in freezones is hard to come by. Picking the right developer with the right investment specialist key. The freezone property will contiue to be a great investment opportunity for all whether investing £50k or £5million or more.

Dubai Residential, Commercial and Retail Property Investment

Diane can i say thank you for helping me and having a sensible discussion.

The answer to your question is NO is it a fantastic investment in the short term, but 1 year all those inclusive offers is nectar to a bee. And i have mentioned in my previous post living in Dubai does help as its tax free, you could manage the property yourself(properties would become difficult as i assume people have full time jobs) ,throw in cheap furniture etc etc.
Now, that one year incentive and upfront cash payments would certainly help me break even , when i would take into account my flight charges and my stay into account in Dubai during the exchange of property, i haven't even taken voids into account.
When one buys an investment property the most tax efficient way is to borrow the money, so on borrowed money the interest has to be paid, whether the property is let or void.

How many people can get Euro zone mortgages??I am a professional landlord and i certainly cannot get one living in the UK. Yes, those mortgages are available if you invest in Euro land or if you release equity on your main residence in the euro zone for people living within those zones, that rate is also for 2 years(again short term). Further, these rates released on your main residence are not tax efficient, as the interest payments cannot be offset agaist your tax, most important factor for landlords. The deal was available in the UK on your main residence or for first time buyers @5.12% fixed for 2 years by abbey with £999 set up costs before the rate rise kicked in.
But, have you checked the cheapest buy-to-let mortgage??its close to 7.5-8%??
Diane, i am glad we are finally sharing ideas, to your next post ,i would never buy those hotel rooms, that was just information, just like euro mortgages, as dave suggested i would have to turn the kettle on before i found anything in the region of 5-7% or comparable to IC, but that doesn't mean i or anyone else jump what is advertised or what people say?
Myself i started off in 1997, and properties were yielding 17-18%, we have had great success in the UK, but like they say live by the sword and die by it.
The Capital gain has been so incredible, that the tax liability would outstrip the purchase price in the UK, such has been the gains. So, majority of the investors who are currently getting 2-3% are sitting tight and taking in the income ,rather than capitalising on the gains. There is a relief if you hold the property for 10 years(taper relief),then you are taxed on 60% of the gains made, still massive.

My aim was never to discourage anyone out there, i wanted to test the waters in Dubai as UK has certainly saturated, the best way was to buy something cheap and with high yields, that is how i got exposed to IC and my homework online exposed me to this forum, as these are best places to get an honest opinion away from the sharks, who always show the nectar side to the bee.
IC has been an experience and a learning curve for alot of people. I won't say its been all bad, there are people like you and Kully(moderator) who have had good experiences and think positive and there are those who have had a sour taste because of dishonest people like ARY , efficient and greedy companies like Nahkeel, who left the icing on the cake for themselves, AND CUT THE SURE SUCCESS OF IC like most projects in Dubai.

Over all I wish all the investors out there the best of luck, but do your homework as that is key to success in these tough times. There are bargains to be had and Diane you have proved it , it has certainly worked for you.

ALL THE BEST!!

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Hi Stumbled,

I am also a UK landlord, like yourself I had had my properties in excess of 10 years(no more taper relief), but do not consider it worth buying in UK now. I have a Euro Mortgage which is secured against UK property. I found the banks in Spain the most helpfull for this. The main reason I bought in Dubai was that it was tax free and therefore thought I did not need to worry about offsetting the interest paid. My financial adviser/accountant seems to think this is correct. Do you know different.

Well, Diane being a British citizen has its advantages and one of them is you are not taxed on your world wide income like the Americans, French etc..I also agree that investments in property are no longer profitable in the UK.But, the thing that is keeping the market going is the shortage of living space and good tie in periods in mortgages for the majority.

Becoming ''tax free'' is ONLY possible if you are non resident(UK) and currently live in Dubai or anywhere else in the world(become subject to tax laws in that country). These are some of the major laws governing the rules on being non-resident or resident ,which ever way you look at it.
In any tax year in which he/she lives in the UK for more than 182 days or
If his visits to the UK exceed 91 days per tax year for 4 consecutive tax years in which case he is tax resident in the 5th year or alternatively from the commencement of the tax year in which he first stated his intention to make such visits to the UK
if he/she makes regular visits which are substantial, habitual and obligatory: Such visits may indicate residence provided they exclude an element of chance and occasion and provided they follow an almost mechanical regularity.

Dubai is tax free if you are living there,if you live in the uk then you surely need to declare your world wide income and it is subject to tax. I suggest you read the link i have posted at the bottom.

Buy-to-let landlords look out for tax man

ALL THE BEST.

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hi

the ready cluster in Intl City are Italy, China, Persia and studios are priced at AED 360K

I have 2 studios in france , the completion is end of 2007 and the price is 330K, you will have to pay 70% now and balance 30% on possesion.

Contact me if you are intrested

Hi Stumbled,

You have left me more confused, you start by saying that an advantage of being a British citizen is that you are not taxed on your worldwide income and end up saying that if you live in the UK you need to declare your worldwide income and it is subect to tax. Also your link refers to UK property only.
Do UK residents need to pay tax on earnings from Dubai? I was told No. I expect the answer will not be straight forward, but please tell us what you know.

Diane....

Here is how i understand the tax laws regarding capital gains tax. Im not overly familiar with them as i dont reside in the UK, but i am a non resident and i do have knowledge of the cap gains tax laws in regard to non residents. If you are a Uk resident ANY income (excluding certain types of investment, but including property) from anywhere in the world is subject to capital gains tax unless you are subject to the tax laws of the country in which you are invested in, in which case i believe there are some concessions. If you are non resident and fulfil the criteria of non residency, stumbled highlights above, the same applies in regards to capital gains tax. If you are non ordinarily resident non domicile, and continue to have that tax status for 4 years, then you are not liable to pay capital gains tax on investments 4 years old or began at the point in time you became non ordinarily resident non domicile. So in summary, if you are a UK resident i believe you are subject to capital gains tax on property investments globally, however the amount due varies depending on if you are subject to local taxes of the country you are invested in, in which case they are offset against UK capital gains tax. I would certainly suggest paying a small amount to an accountant experienced in these laws to explain or write in plain speak english, anything that is applicable to you and your investment(s) offshore or otherwise....

Hi Dave,

Thanks for the info. I have seen accountants and was told that I do NOT need to pay tax on earnings from Dubai, especially if the monies are not brought into the UK. This is a bit of a wooly answer to me and would like clear confirmation of the facts. I even spoke with the Inland Revenue who also gave contradicting advise! Why is this subject so unclear, maybe a new thread needs to be started on this.

Diane, i think you are panicking unnecessarily. Another point one must remember if you have a spouse always buy in joint names, as you can maximise your cgt allowance. Ok this link will answer all questions you ever had and i hope it's very straight forward for all those doubtfuls out there.

Tax on overseas property lettings : Directgov - Money, tax and benefits

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Diane i certainly meant it when i said that being British is an advantage when it comes to retirement abroad.Lets spare a thought for the Americans, French..etcetc who have to pay taxes even when they are non-domiciled.
But, free schools, free NHS treatment, govt. pensions, etc etc comes from taxes,which has to be paid by people who live here(not being sarcastic).
Now ,imagine if people like Dave were taxed sitting in Dubai as a non-resident??well, Mr.Brown is certainly thinking about it, so don't be surprised if it comes,cause cometh the hour cometh the man.
That would bring in about 5 billion more in taxes. We all know how he produces surprises and waves that wand.
So, i'd say to all those sitting happy and absorbing the sunshine, don't get complacent.

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