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Frequently Asked Questions
- What is Property Swap?
Ans. The concept of ‘Property Swap’ works on the premise: “I'll buy your house only if you buy mine.” It could also be viewed as 2 separate transactions taking place at the same time where party A buys a house from party B, while party B buys the house from party A. The exchange takes place on the same date via a simultaneous closing. Both parties pay off any existing loans and obtain new financing on the home they are buying.
- Who could swap property?
Ans. Anyone who owns a property can swap his/ her property for another one. The concept is especially beneficial to someone who is moving to a different location and simply wants a similar place to live in. Exchanging properties is also another way for investors or second homeowners to move assets to different locations, thereby reducing risk.
- Could I swap my property even if I have no equity in my home? If yes, then how?
Ans. Yes, you could swap your property even if you have no equity in your home. Equity is the value of a property after deduction of loans against it.
Therefore, assuming you have a house estimated at AED 300,000 and your total obligations equal AED 300,000 then officially, you have no equity. You could still swap your house for any property as long as you have a down payment and qualify for a new loan for the house you are swapping.
The only alternative way to obtain a no-down payment loan is by creating a second mortgage or by tapping into equity of another property. Hence, even property owners with no equity could swap as long as they could qualify for a new mortgage.
- Could I swap for a more expensive property?
Ans. Yes, once you agree to a swap, then the process is a normal selling/ buying procedure. If you are purchasing a more expensive property then you apply for a mortgage in the normal way. The value is not as relevant as the ability of the buyer to obtain a new mortgage on a more expensive property. Again, we need to look at a swap transaction as two separate deals where you are first selling the property and then buying your next property.
- Under what circumstances is property swapping done if one owner has no mortgage while the other has no equity?
Ans. Yes, this could be done.
For Example: There are two property owners – ‘A’ with AED 300,000 fully mortgaged home and ‘B’ with fully paid AED 200,000 property that has 100% equity. ‘A’ would have to qualify for a new loan of AED 200,000 to purchase B's property. During the swap transaction, the initial AED 200,000 will come from ‘B’ since she is buying the house from ‘A’ for this amount.
‘A’ will come up with AED 100,000 to pay off the remaining balance on the residence he is selling. That could come from sources outside of this home exchange, i.e. a savings account, line of credit on another property or the sale of another property.
B's side of the equation is not as complex, but she needs to bring AED 100,000 to finalise the transaction.
In case, A’s and B’s properties were worth AED 200,000 each and equal value, then ‘A’ would have to qualify for a new loan to purchase B’s property for AED 200,000 while ‘B’ will not have to bring any money to the closing table.
- What exactly happens to existing mortgages?
Ans. Most existing mortgages will be paid off at closing. A possible exception would be an assumable mortgage that can be transferred into the new owner's name.
First Gowealthy Real Estate Brokers LLC is a Registered Real Estate Broker under Dubai Government and holder of the RERA Registration Number: 197.
Transfer charges and registration charges apply as per the prevailing rates in Land department.
- Who could list for Gowealthy Property Swaps?
Ans. Gowealthy.com welcomes all individuals and companies who wish to swap their properties. They could be private property owners, investors, property brokers or organizations. Just register as a member and start listing your property details on our Property Swap pages immediately. Right now, the services apply to properties in the UAE.
- How do I know how much my property is worth?
Ans. If you are not certain about the current market value of your property, please have it evaluated. If you prefer a RERA-approved consultant to evaluate your property, Gowealthy will be more than happy to get it done for you. For property evaluation by experts and related paperwork, we charge a nominal fee. If you require exclusive snapshots of your property, our staff photographer would offer the services.
- How could I avail of Property Evaluation services by Gowealthy.com and what are the charges?
Ans. Gowealthy.com offers the paid property evaluation services to the registered members. You could avail this service by contacting us at swap@gowealthy.com. Service Fee is AED 200 (USD 55) per property which is payable via cheque or cash. When you are enlisting for our property evaluation services, please specify your preferences – whether you would like your property to be evaluated by RERA-approved evaluators or our in-house experts.
- How could I avail of photography services by Gowealthy.com and what are the charges?
Ans. Gowealthy.com offers the paid photography services. You could avail this service by contacting us at swap@gowealthy.com. Service Fee is AED 150 (USD 40) per property per hour, which is payable via cheque or cash.
- What is the cost involved in Gowealthy property swaps?
Ans. The costs involved are the same as one would incur when buying and selling a property because real estate exchange is simply selling one property and buying another. Registration and activation are free. Once the transaction is completed, you owe us 1% of the property value as service fees.
- What assets could be swapped in a Gowealthy Property Exchange?
Ans. Residential and commercial properties, as well as land plots. Right now, the services apply to properties in the UAE. You could exchange a property for another property or a land plot. You could have any size of property or plot, in any location on any date, assuming it is available on Gowealthy.com. The choice is entirely yours.
- Could I list more than one property for swapping on Gowealthy.com?
Ans. Yes! You could list as many properties as you like.
- What benefits do I derive after becoming a member of Gowealthy Property Swap Community?
Ans. Once you have registered for our Property Swap services, you gain the following benefits:
- A property profile page
- A personal profile page with wish lists
- A personal messaging system
Members may contact through Gowealthy.com to arrange property exchanges.
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How do I list a property for swapping on Gowealthy.com?
Ans. Listing a property for Property Swaps on Gowealthy.com is very simple. Just register as a member and activate your account. Currently, registration and activation are free. You could upload your portfolio (single or multiple) after activation of your account. Start listing properties by clicking ‘List for Property Swapping’ and use our customized form to enter property details and property images. You could modify listed details any time.
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How much should an individual owner pay to list his/ her property for swapping?
Ans. Registration and activation are free. Membership is valid for 6 months. Gowealthy.com charges 1 per cent of the property value from each party once the deal is concluded.
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Can real estate agents register properties for swap?
Ans. Yes, we allow property agents to register properties for swaps on behalf of their clients. But during registration, agents should specify that they are brokers. Registration and activation are free. Other agents may reach us at swap@gowealthy.com. Agents will be interacting directly with our representatives.
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What is the activation fee for real estate agents?
Ans. Registration and activation are free. Membership is valid for 6 months.
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How do I pay the activation fee to upload portfolios?
Ans. It is very simple. After registration, you will receive an activation code from us in your mailbox. After activating your account, you could start uploading your properties for swaps. You may upload up to 10 digital photos of your property.
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Does listing my property for swapping on Gowealthy.com mean it is ready for public viewing?
Ans. Listing with Gowealthy.com is the first step to draw potential property owners for your property. Once you have listed your property, you could preview how your property would appear on the Gowealthy property swap community. Once satisfied, just submit the property for review. After verification of details by our team of experts, your property will be published online within 24 hours.
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Could I change/ edit the listed property after it has been published on the website?
Ans. Yes! When you register with us, we provide you with a username and password that could then be used to edit/ manage your listed property details any time.
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How long will my property appear on the website?
Ans. Your property will stay on our website until it has been swapped or you inform us to remove it or until the expiry of your membership.
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Will Gowealthy.com publish my email address, phone number, or property address?
Ans. Absolutely not! We exercise greatest discretion possible and treat the afore-mentioned details confidential. We are genuinely concerned about your need for privacy and security. Your personal data is absolutely safe with us and will not be published online. A potential candidate could contact you only through us.
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How do I conclude a Property Swap?
Ans. Our team will contact you via phone or email, once we have obtained a match for your property. Gowealthy.com will guide you through the property exchange till its completion. We are a facilitator and any contract you enter into is with the owner of the property concerned and does not involve Gowealthy.com.
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When does my membership expire?
Ans. Your membership to the Gowealthy property swap community is valid for 6 months, after which it expires unless renewed for another 6 months. Currently, membership is free. You will be notified by our webmaster, two weeks in advance if your membership is up for renewal.
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Do you offer other services?
Ans. Yes we do. You could avail of our Live Chat Support and through Gowealthy connect. We are well aware that you could be new to property swap concept. We have a dedicated team to support you during the swap process.
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