💼 Explanation of the Transaction
Location: Bluewaters Residence 3, Bluewaters Island Dubai, UAE
Property Type: Apartment
Property Size: 1,464 sqft
📊 Financial Summary
🏡 Purchase Phase:
| ITEMS | AED | USD |
|---|---|---|
| Purchase Price | 3,322,000 | 910,137 |
| DLD Fee (4%) | 132,880 | 36,408 |
| Total Cost of Ownership | 3,454,880 | 946,545 |
| Capital Investment | 1,793,880 | 491,469 |
⌛ Holding Period:
| ITEMS | AED | USD |
|---|---|---|
| Purchase Date | Apr, 2020 | |
| Sold Date | Jul, 2024 | |
| Holding Period (Years) | 4.25 |
🏷️ Sale Phase:
| ITEMS | AED | USD |
|---|---|---|
| Sold Price | 6,000,000 | 1,643,836 |
💰 Rental Income Analysis
| ITEMS | AED | USD |
|---|---|---|
| Annual Rent | 298,000 | 81,644 |
| Total Service Charges | 205,020 | 56,166 |
| Total Net Income From Rent | 836,150 | 229,057 |
📈 Total Return Analysis:
| ITEMS | AED | USD |
|---|---|---|
| NET Profit From Sale | 2,545,120 | 697,291 |
| Total NET Rental Income | 1,192,980 | 326,576 |
| Total NET Return | 3,738,100 | 1,023,867 |
| ROIC | 208.44% | |
| CoC Return | 208.44% |
📝 Explanation of the Transaction:
Purchase Phase:
- Property purchased in April 2020 for AED 3,322,000.
- Paid 4% DLD fee amounting to AED 132,880.
- Total cost of ownership was AED 3,454,880, including the DLD fee.
- Capital investment involved was AED 1,793,880 (50% of purchase price + DLD fee).
Holding Period:
- The property was held for 4.25 years (from April 2020 to July 2024).
Sale Phase:
- Property sold in July 2024 for AED 6,000,000.
Rental Income Analysis:
- The annual rent was AED 298,000.
- Service charges for the apartment were AED 205,020 (at 17.50 per sqft since purchase price was over 1.5 million AED).
- Total net income from rent over the holding period was AED 1,192,980.
Total Return Analysis:
- Net profit from the sale was AED 2,545,120.
- Total net rental income was AED 1,192,980.
- Total net return was AED 3,738,100.
- Calculated ROIC and CoC return were both 208.44%.
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Why Choose PHOREE Real Estate? Decades of Wealth Management Excellence: Leverage our 40 years of experience in American wealth management and investment, brought to Dubai's real estate market. First-Mover Advantage: Benefit from the pioneering spirit of the first American company in Dubai to categorize real estate as a strategic investment class. Tailored Investment Strategies: Enjoy personalized investment advice that aligns with your specific goals, powered by our consultants' deep market knowledge and experience. Seamless Investment Journey: From identifying the perfect property to closing the deal, our team ensures a smooth, transparent, and rewarding process.
In a world where the right investment can redefine your future, choosing PHOREE Real Estate is more than a decision—it's a strategic move towards securing your legacy. Immerse yourself in the sophistication of American investment excellence, tailored by the hands of Wall Street veterans, all within the vibrant heart of Dubai's real estate market. Embark on your investment journey with PHOREE Real Estate, where your aspirations meet our expertise. Together, we will not only achieve your investment goals but also surpass them, setting a new standard for what you thought possible.
Legal Disclaimer
This document and its contents, including any calculations and analyses, are provided for informational and educational purposes only and should not be construed as financial advice, an offer, or a guarantee of future performance. The information herein is simplified to enhance understanding and does not reflect the complexity of real-world financial decisions. Past performance is not indicative of future results, and investments in real estate are subject to market risks and uncertainties that can result in the loss of principal. PHOREE Real Estate, including its owners, managers, employees, and consultants, makes no warranties or guarantees regarding the accuracy, reliability, or completeness of the information provided. The company and its affiliates shall not be liable for any errors or omissions in the content, or for any actions taken in reliance thereon. Investors are strongly advised to consult with professional financial advisors before making any investment decisions. The responsibility for any investment decision lies solely with the investor, and PHOREE Real Estate disclaims any liability for financial loss or damage that may result from such decisions. By accessing and using this information, the reader agrees to the terms of this disclaimer and acknowledges that they are acting on their own behalf and at their own risk in any investment decisions.
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