Dubai real estate has been a consistently hot real estate market for investment property in the past few years. Dubai is the most populated and second largest Emirate in the United Arab Emirates. It has seen enormous construction and has attracted investors worldwide to its real estates projects.

I remember the time when an overseas investor searching for a mortgage would be confronted by puzzled Dubai developers and even more confused estate agents. When an international investor did find a local bank it would be so expensive and time consuming the buyer often gave up. The good news is that the Dubai real estate market is maturing and the big banks have woken up to the fact that Dubai mortgages are potentially very big business.

The early troubles with a Dubai mortgage all stemmed around the difficulties foreign buyers had securing the freehold on a property. Since the announcement on March 12 2006 that non United Arab Emirates nationals may be given the right to own freehold properties in some parts of Dubai, massive interest has been stirred in overseas property investors. Demand is surging and real estate is in short supply many off plan developments sell out in days of release.

Now with laws passed and established zones in Dubai where freehold ownership is not in question the banks are finally acting. The Dubai mortgage market is set to be one of the most competitive markets in the world. The worlds investors are looking at Dubai long and hard. Investors will not tolerate being ripped off with high price mortgages.

Unlike many overseas markets most freehold property in Dubai has not bought with mortgage finance. This gives the market a huge amount of resilience. Many of the mortgage providers in Dubai will only lend to non residents in the Dubai freehold zones.

Properties for sale that are suitable for foreign buyers are in the following freehold zones: Dubai Sports City , Dubai Marina , I.M.P.Z. International Media Production Zone , Jumeirah Village , The Palm Jumeirah, Shaikh Zayed Road, International City, The Lagoons, Palm Deira, Jebel Ali Airport, Emirates Road, Dubai Land ,Business Bay ,Downtown Dubai and much more

So what is attracted international Banks to Dubai that’s simple money and plenty of it. Dubai’s population is currently in the region of 1.4 million citizens, by 2010 it is expected that Dubai will be home to 3.5 million residents. The Banks anticipate a huge demand for property and in turn a big demand for mortgages. The large multi nationals will be moving in and with them their employees all needing a place to live.

Most of Dubai population is set to be made up from people from overseas. Dubai will be truly multi cultural multi national and that feeling is already in Dubai. Experience Dubai nightlife and you will see it is a truly multi national experience.

The future for the big banks is bright as overseas investors will feel more secure going with mortgage providers that they are familiar with.

In all mortgages in Dubai are good for the banks and are set to be good for overseas buyers investing in the new world attraction which is Dubai.

By: Nicholas Marr

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If you’ve been involved in real estate investing for any length of time, chances are you’ve tried to obtain 100% investment property mortgages. If you’ve made the effort recently, you know that these 100% loans are becoming increasingly difficult to find. The reason is simple- these 100% investment property mortgages default at a much higher rate than most other types of mortgage, and the end result is often foreclosure.

This puts many investors in the unenviable position of ‘motivated seller’ and forces them to look for creative ways to unload their property, in many cases even phoning other investor’s ‘We Buy Houses’ hotlines. These circumstances give rise to a vicious circle of investors, feeding off one another, giving the entire industry a black eye in the process.

These scenarios are being played out in cities across America, and investment property mortgages, particularly 100% loans, are taking a bad hit. Lenders are eliminating these products from their portfolio of services in droves, and investors are scrambling to find alternate sources of funds.

One such source is Private Money. Another, the self-directed IRA, allows investors to use their own retirement funds for real estate investments. Investment property mortgages and creative loans from sources other than institutional lenders and mortgage brokers are increasing at a record pace.

But are these alternatives to investment property mortgages a good idea?

If used wisely, they can be, but there may be a wiser way of looking at the situation. First, we need to examine the question of why investors would need investment property mortgages for 100% of the appraised value of the property in the first place. The only real answer to that question is that too many investors have been overpaying for their properties.

The real estate bubble, and rapidly rising property values, caused a buying frenzy by investors in many areas of the country. This rush spilled over, even into areas where there was no true bubble. Now that the bubble has burst in most areas, investors are feeling the pinch. The old tactic of buying at market value and letting the fast-rising market build in your profit no longer works… in many cases it NEVER worked.

The ONLY way to guarantee profit, and avoid the meltdown that comes with over-paying, is to buy value. The investor must do his or her homework and buy for well under market value. Then he will have no need for 100% investment property mortgages. When you routinely buy your properties for 80% of market or less, obtaining investment property mortgages becomes much less problematic. You have a greater selection of loan products to choose from, and qualifying is much less stringent.

The moral of the story? Buy value, and do your homework. If you’d like to learn more, visit my page on Investment Property Mortgages

Now, go make more offers!

By: Tom Dunn

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