Prop Swap is the first formalized online property barter community in the UAE for those looking to shift or exchange real estate stock. Designed by the region’s leading property brand, Gowealthy.com, this web-based solution is aimed at home owners and property investors feeling the pinch of the cautious market conditions. Gowealthy Prop Shop enables registered users to effortlessly connect with people in similar situations who are willing and able to exchange residential, commercial and even land plots from the comfort of their home.
The current economic climate has left many people in the unfavorable position of having to sell and move, but are unable to do so. In addition, many owners and investors have a number of properties they would rather exchange for more desirable or favored properties, than retain as stock. Prop Swap provides such clients with an inexpensive tool to access exclusive organizations or investors seeking properties in new areas. With property sales falling and regular sales chains collapsing, the time is ripe for creative marketing and sales solutions within the property market. Property swapping has the substantial advantage of allowing an owner-investor to take control. It helps initiate sales by matching the properties of people who want to trade up or down but are unable to sell in a normal chain because of market conditions.
“We have the most comprehensive property swap service to date as Gowealthy is linked to a vast data base of clients who either are looking to buy, or sell. Specialized in swapping, buying and selling, Prop Swap will accommodate everyone from private owners to investors, property brokers and large organizations. Our aim is to help them sidestep the existing market situation and ease the pressure of buying and selling. There is no time-consuming frustration of dealing with multiple estate agents as members of the Prop Swap community can list more than one property,” says Peter Penhall, Chief Executive of Gowealthy.com
The site is open to registered users who have to pay a half-yearly refundable fee for each listed property that is made open for trading. On the Prop Swap micro-site at Gowealthy.com, members can input details of their desired locations and the specifications of the property they are looking for, as well as upload details and pictures of their own property. If the mutual interests of two potential sellers match, the specialized Prop Swap team at Gowealthy.com arranges viewings and makes the necessary sale-purchase related arrangements as they would on any other house purchase. Both homes have to be valued in case of mortgage requirements, and any shortfall in value has to be adjusted for.
Members of the Prop Swap community who are unsure of their property values will also be assisted with evaluation by a RERA approved Gowealthy consultant.
Prop Swap also eliminates the problem of those purchasing a second home before their current property is sold or at least under contract. As contracts call for a closing on the same date for both properties, the financier/ bank will not use the monthly payment from the current mortgage as a liability, nor will it use the old mortgage balance in total loan-to-value rations. With fewer liabilities, the buyer qualifies for a new loan and can negotiate better mortgage terms. Once the transaction is completed, the standard 1% of the property value will be deducted as service fees.
Though a relatively new concept in the UAE, property swapping is now being considered a creative yet successful way to negotiate the market slump. Gowealthy believes that this exchange system has the potential to become one of the surest and most secure revenue models within the property sector in the region due to the range of options and convenience it provides to both buyers and sellers.
Al Bawaba
