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With the world reeling under global recession, money plays a crucial role and the root of the money is production, the root of which is property, and property as we have seen, is the root of economics. As markets continue to be denuded, consumers are hard-pressed for cash and resources to make ends meet. In such a scenario, the age-old concept of commodity barters or exchanges assumes significance. A real estate bartering system implements barters between pluralities of parties, each having one or more classes of items available for barter. How is property exchange or bartering relevant to the UAE? The answer is simple. Spiraling costs and tightening cash flows could very well put a strain on investors. The bartering business is really recession-proof in a slow economy, and the barter system helps clients find new customers and move inventory, the cashless alternative boosts customer bases, reduces bad debts, turns surpluses into profits, eliminates the idle time of employees and reduces cash outlays. By opting for exchanges, owners are assured of assets matching their requirements and demands. Moreover, through barters they can move assets to different locations, thereby spreading and reducing risk. Property exchanges work on the premise: "I will buy your house, only if you will buy mine." They work in the case of those property owners who would like to move on and are on the lookout for properties in fresh surroundings, yet do not want to laden with additional expenses. A property exchange can be regarded as two separate transactions taking place simultaneously, where party A buys a house from party B, while party B buys the house from party B. The transactions take place on the same date via simultaneously closing. Both parties pay off any existing loans and obtain any new financing on the home they are buying. Rather than a seller-buyer transaction, it is a buyerbuyer deal. In the US and the UK, barters are highly popular in areas where foreclosures are high; even then, swappers have to contend with paying taxes, in some cases higher than what they were paying for their earlier property. However in the UAE, barters are extremely cost-effective as there are currently no capital gain taxes. The only costs entailed are the transfer and registration fees remitted to Real Estate Regulatory Authority (RERA) if applicable to Dubai or the Land Department in case of other emirates. Property exchanges are totally µshariah' compliant because they are completely devoid of third party involvement. However, all said and done, exchanges are not without complications. For instance there is the problem of mortgage disparity. If the property of party A that was worth AED 5 million a year ago and which has now depreciated in value by say, 40% comes up as a potential match for another property worth AED 7 million with no equity, how do you deal with it? RERA and other real estate monitors might have to issue clarifications on the situation. Furthermore, everything hinges on the co-operation between the swappers. But property barters may, in the long run revive the UAE real estate sector by encouraging people to consider buying and selling property again; especially if the government defines well-trenched policies that require established businesses augmenting their sales with barter transactions to report those deals. The key to breaking the current market inertness is clearly more transparency from the government. In the US, the state agency Internal Revenue Service (IRS) has a site containing useful
Kuwait. Jordan.. (Terms and Conditions apply). with a vision to lead the world in Barter Real Estate Hosting. Lebanon and Egypt. Shareholders or employees.. For Rent. 0 0 New Share 5 3. There are No Advertising Costs for any properties being advertised on Real Estate On Barter whether you are a Real Estate Agent or a Private seller. are permitted to take enquiries or to deal with any property on behalf of a person or entity or Real Estate Agent. and hence it is said that money is the most preferred asset. nor any of its Directors. New Zealand. Together they formed a new company Real Estate On Barter Pty Limited ACN: 141300807. and all inquiries generated as a result of an online search of the Real Estate On Barter site go directly to the person or entity who advertised the property or business. UK.RealEstateOnBarter. Neither ´Real Estate On Barter Pty Ltdµ. Vanuatu.com is merely a hosting facility for Bartercard Members. there is no way of storing the purchasing power of the saved income.67/5 . Sri Lanka. If the UAE government embarks on a similar drive. Unlike some other online Real Estate sites. Qatar. 2010 In a system of barter economy.The money system does not have any of the above problems. Real Estate On Barter was created by a group of Barter Traders who identified a need for a dedicated Real Estate "BARTER" Web Site. Cyprus. Properties Wanted or Holiday Accommodation. be they a Property Owner or Real Estate Agent as the case may be. Real Estate Agents and NON-MEMBERS alike to advertise their properties For Sale. Thailand. www. The barter system: Pros and cons Vinod Anand 21 May. Emirate·s. in Australia. If you are a private seller then no licence is required. Business For Sale. If you are a Real Estate Agent then the licensing rules which apply to you as an agent or an agency apply in relation to the property and the country in which you as an Agent or an Agency operate.information on bartering. All properties advertised MUST have at least 20% of the Selling or Rental Price payable using Bartercard Trade Dollars. There are no fees or commissions payable to Real Estate On Barter in the event of a successful sale or rental. then we may be in for a quite a long innings as far as property swaps/ exchanges are concerned. the person or entity advertising a property does not have to be a Licensed Real Estate Agent to advertise a property on the site.
A comparative market analysis and an appraisal are the two most common and reliable ways to determine a home's value. µthe barter system was one of the earliest forms of trading. and document fees. through private firms. During this time. only whether the home might collapse in a storm or if the roof might cave in. improvements. however. is established when ³a meeting of the minds´ between the buyer and the seller takes place. homes can sell above and beyond the asking price as buyers bid up the price. Reviewing comparable homes that have sold within the past year along with the listing. Both the buyer and seller incur some of these expenses when transferring ownership of a property. The fair market value. property taxes. It facilitated exchange of goods and services. According to wikipedia. construction. costs are expenses over and above the price of the property. He does not establish value. After visiting the home to check such things as the number of rooms. Take. How do you determine how much a home is worth? The short answer: a home is ultimately worth what is paid for it. What are closing costs? Closing. or settlement. and the condition of the neighborhood. Closing costs normally include title insurance. often depends on local custom and what the buyer or seller negotiates. .THE ECONOMIES of the world long back shifted to the money system. and mechanical systems. or asking. size and square footage. Lenders normally require an appraisal ± which run between $200 to $300 ± before they will approve a mortgage loan. Home inspectors search for defects or other problems that could become your worst nightmare later on. Your real estate agent can provide a comparative market analysis. It is not the inspector¶s job to determine whether you are getting good value for your money. Everything else is really an estimate of value. loan points. an informal estimate of value based on the recent selling price of similar neighborhood properties. A certified appraiser can provide an appraisal of a home. What does a home inspector do? A home inspector is a paid professional ± often a contractor or an engineer ± who checks the safety of a home. You also can check recent sales in public records. price on current homes for sale should prevent you from overpaying. as money was not invented in those times. construction quality. Prior to that there used be a barter system. This protects the lender by ensuring the home is worth the money you want to borrow. or worth. A home inspection typically takes place after a purchase contract between the buyer and seller has been signed. a hot seller¶s market when demand for housing is high but the inventory of available homes for sale is low. the appraiser then reviews recent comparable sales to determine the estimated value of the home. They focus particularly on the home¶s structure. escrow or closing day charges. for example. The history of bartering can be traced back to 6000 BC Evaluation appraisals & Market Value y Are there standard ways to determine how much a home is worth? Yes. and on the Internet to help you determine a home¶s potential worth. The lender provides an estimate of closing costs for prospective homebuyers. Who actually pays.
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