Bartering Property - A Recession-proof, Cashless alternative to ...
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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. But will bartering properties solve investors' debt woes.
Spiraling costs and tightening cash flows could very well put a strain on investors. The bartering business is recession-proof in a slow economy and 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.
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 ‘shariah' compliant because they are completely devoid of third party involvement.
