For those who managed to avoid losing their shirt in the Spanish property market, or investing in Dubai’s real estate bubble, another possibility seems to be floating on the horizon – maybe. Cambodian Prime Minister Hun Sen on Friday urged the Ministry of Land Management, Urban Planning and Construction to expedite the drafting of new rules that would permit foreign ownership of property in Cambodia.
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Yet more property related laws to be introduced in Dubai
According to “The National,” a major Dubai newspaper, Dubai is expected to release yet another set of laws governing the property industry. There is a growing number of disputes between small property investors and developers in Dubai and prices continue to fall. This is what The National has to say:
Yet another law has been introduced in Dubai to protect the developers against defaults by small investors. Law Number 9 of 2009, announced recently by the Dubai Land Department and Real Estate Regulatory Agency (RERA), introduced a sliding scale to determine how much money a property buyer who defaults on payments will end up losing.
The Indian envoy to the UAE, Talmiz Ahmad says there will be no help for workers returning to India as the global downturn drops demand for unskilled workers in the construction sector in the Emirates.
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The National Rental Affordability Scheme (NRAS) is set to help out some property investors in Australia as well as those who struggle to afford rental properties.
In an attempt to make renting more affordable for lower income earners the NRAS scheme gives tax free bonuses to investors who agree to rent out their property at 20% below market rent. The “market rent” is evaluated by independent valuers when the property is completed and every three years there after. It appears that the property has to be a new one to. Which is pretty silly when you think of it – aren’t they by definition the highest cost properties: wouldn’t a renter choose a new rental over the “second hand one” down the street if the price was equal anyway?
Real Estate Investments in Cyprus – The Ugly
Once again, the justice system in Cyprus displays its customary incompetence and reluctance to do any real work. The archaic laws concerning real estate investments in Cyprus still contain gaping loopholes, allowing unscrupulous developers to steal money from buyers. Thousands of foreign buyers have been scammed by property investors, in a scheme dating back to the 1980’s, with little sign of any attempt to fix the system.
It appears Dubai is not the only emirate facing financial issues, and another UAE developer has gone broke causing many British investors to lose their money. The British were enamored of the idea of making a fortune in property investments in the UAE, using money from “equity release” programs on the British property. As the British property market contracts and house values in the UK fall, a similar fate is befalling their traditional investment markets in Spain, France, the UAE and Cyprus.
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PKF Accountants have ussued a warning to British overseas property investors regarding the current capital gains tax rules in the UK. Falling property prices in the eurozone plus a worsening UK economy and a substantial fall in the value of the pound is prompting many ex-pats to sell up and move home, but UK tax laws stipulate that any gains on overseas assets are calculated using the spot exchange rates on the given day assets are bought and sold.
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