CROWDFUNDING IN DUBAI
Already popular in the UK and the USA, Property Crowdfunding is a way of purchasing a share of a property, thereby limiting your risk and exposure yet still receiving all the benefits of the rental returns and capital appreciation.
Move In Dubai is proud to be working with the Middle East's first and only financially regulated digital real estate investment platform. This gives investors the opportunity to purchase a share of a property and complete the entire transaction online.
The minimum investment is AED 5000 per property and the maximum investment is a 25% share.
FREQUENTLY ASKED QUESTIONS
Q: Will I own the property?
A: Yes. You will have a part ownership of the freehold of the property. An SPV (Special Purpose Vehicle) for each individual property purchased will be set up through DIFC (Dubai International Financial Centre) and the owners of that SPV will each receive a Share Certificate detailing their percentage share.
Q: Will my name be on the Title Deed?
A: No. The SPV which is set up specifically for your property purchase will be mentioned on the Title Deed. The only shareholders of the SPV will be those owners who paid for the purchase, yourself included. You will receive a Share Certificate showing that you are an owner of that particular SPV.
Q: Is this concept regulated in Dubai?
A: Yes. It is regulated through DIFC (Dubai International Financial Centre) and the entire system has been implemented in conjunction with the Dubai Land Department.
Q: What is an SPV?
A: A "special purpose vehicle" (SPV) is a "bankruptcy-remote entity" that is used to isolate or securitise assets. Its operations are limited to the acquisition and financing of specific assets as a method of isolating risk. This means that your purchase is 100% secure and ring fenced from any other company activity.
Q: Will I have to be in Dubai to complete the Property Purchase?
A: No. Everything can be done online meaning you can buy your property investment from anywhere in the world, at any time of the day.
Q: Can I Buy the Entire property in my name?
A: No. The most you can own in any one property is 25%
Q: Can I take out a mortgage?
A: No. You cannot take out finance on your share of the property
Q: Can I view the available properties online?
A: Yes, once registered you will have full access to the entire database of properties online, which gives a complete description of the property, the purchase price, income and outgoings
Q: Can I view my portfolio online?
A: Yes. You will be able to view your entire portfolio online through the digital platform
Q: How will I receive rental income?
A: All rental income will be paid into your own segregated online bank account, operated through GCS (Global Custodial Services). GCS is authorised and regulated by the UK's Financial Conduct Authority and holds Part IV Permissions under the UK Financial Services & Markets Act 2000 under Registration Number 595875 and is fully regulated to hold client money for the purpose of investment.
Q: Can I Withdraw the rental income from my online bank account?
A: Yes you will have online access to your Santander bank account at all times and only you have the authority to make transactions using your Santander dual signature chip and pin smart card
Q: What properties will be available for sale?
A: Only completed properties that are in an established location with be available for sale. Those generating a higher rental return will obviously be of most interest to investors.
Q: Who will vet the property?
A: The compliance team will be vetting each and every opportunity presented to the platform and only those that meet a strict set of criteria will be made available for sale
Q: When I can sell my share of the property?
A secondary platform will be created whereby owners will be able to sell their share online. Initially however at the end of the first year, if the property has gone up in value and more than 80% of the owners agree to sell, the property will be sold. If the property has not gone up in value, then you would hold onto the property for another year.
WHAT ARE THE BENEFITS OF PROPERTY CROWDFUNDING?
This concept has so many benefits.
1. If you have AED 1 million to invest, rather than purchase 1 property in Dubai Marina you can buy a 25% share in 4 properties in 4 different locations, thereby spreading your risk across key areas of Dubai.
2. If you have enough money for a 25% deposit and were planning to take out a 75% mortgage, you can avoid the risks and costs associated with the banks and simply own the same asset with a few other like minded investors.
3. You can now get involved in the Dubai property market with as little as AED 5000. You can use the rental returns to supplement your monthly income.
4. If you have a lower budget and have traditionally been buying studio apartments, you can now build a portfolio in some of the most iconic buildings across Dubai on Palm Jumeirah, Dubai Marina, Downtown and other prestigious locations.