How to buy with a bank loan
How Japanese people can buy real estate in Dubai with a bank loan
Dubai's real estate market is very attractive to foreign investors, but it is often thought to be difficult for Japanese people to purchase property using a bank loan.
However, with a little ingenuity and preparation, the possibilities for purchasing using a loan may increase.
1. How bank loans work in Dubai
Banks in Dubai generally offer home loans to UAE residents (Emirates ID holders) or foreigners with a source of income within Dubai.
Therefore, Japanese people have the opportunity to obtain loans if they meet certain conditions.
Also, while the maximum loan amount for a normal loan is around 60% to 80% of the property price, there are cases where a 100% loan is possible if you receive a special invitation or meet certain conditions.
If you can obtain 100% financing, the only initial cost you will need to pay is the 4% registration fee with DLD (Dubai Land Department), which may allow you to acquire property while keeping your cash on hand.
2. How Japanese people can get bank loans
By utilizing the following methods, you may be able to see the options for purchasing real estate using a loan.
Get an Emirates ID: Get a UAE residence visa and become more eligible to apply for a bank loan.
Obtain proof of income within Dubai: Proving that you have a stable income through local employment or business will make it easier for banks to approve your application.
Establish a Dubai company: You can also meet the loan requirements by establishing a local company and securing business income.
Take advantage of loan programs in partnership with specific developers: Some developers offer loans in partnership with banks to foreigners, so this is one option.
3. Possibility of using loans for investment
If you are able to purchase property using a loan, you may be able to cover the loan payments by operating a short-term rental property on sites such as Airbnb.
Furthermore, Dubai's real estate market is expected to see price increases in the long term, which increases the chances of earning capital gains (profits from rising asset values) as property values rise.
You might also consider purchasing a property with a loan, renting it out, and hoping for capital gains in the future .
4. Summary
Getting a bank loan in Dubai is not easy, but it is not impossible.
If you can keep in mind key points such as obtaining an Emirates ID and securing an income in Dubai, purchasing a property on loan may become a reality.
If you would like to know more about purchasing and managing your property with a loan , please feel free to contact us. We will introduce you to the options that are right for you!
