Buying property in Dubai from Australia?

The decisions to make, in order

Most of the difficulty in buying from Australia is sequencing. Settle how the purchase will be funded before choosing a home, because the funding route decides your budget, your deposit and how quickly you can complete.

1. 01

   Choose the funding route

   There are three common routes: cash, equity drawn from Australian property, or a mortgage from a UAE bank. Australian lenders lend against Australian security, so using equity means a loan secured on your Australian home or investment property and assessed on your Australian income. That is the part NewGen Finance Brokers can review.

2. 02

   Understand UAE lending as a non-resident

   Some UAE banks lend to buyers who live overseas, but on tighter terms than for residents. In practice many lend roughly half to 60% of a ready home’s value, and each bank sets its own policy within Central Bank rules. Expect to document your Australian income in detail, and allow 0.25% of the loan plus AED 270 in fixed DLD fees to register the mortgage.

3. 03

   Check where you can own

   Foreign buyers can hold freehold title in Dubai’s designated freehold areas, which include the main villa and apartment communities. The Dubai Land Department issues the title deed in your own name.

4. 04

   Plan the purchase from a distance

   You can shortlist and make offers from Australia, and Form F can be signed digitally. If you cannot attend the transfer, an attorney can complete it for you under a power of attorney that meets UAE requirements. Get legal advice on preparing and attesting that document in Australia well before the transfer date.

5. 05

   Budget for the money side

   Plan for roughly 7% on top of the price on a typical resale: the 4% DLD transfer fee, the trustee office fee, agency commission and mortgage costs if you borrow. The secondary-market guide breaks these down. The dirham is pegged to the US dollar, so your cost in Australian dollars moves with the AUD/USD rate between offer and transfer.

6. 06

   Get Australian tax advice early

   Australian tax residents declare worldwide income. That includes rent from a Dubai property and any capital gain when you sell. Speak with an Australian tax adviser about how the property should be held and reported before you buy.