Location: Dubai
Property Type: Residential
Property Size: 1,401 sqft
Purchase Price: AED 1,400,000
Sold Price: AED 2,450,000
Holding Period: 1.67 years (November 2022 - July 2024)
💼 Financial Summary
| Item | AED | USD |
|---|---|---|
| Purchase Price | 1,400,000 | 383,562 |
| DLD Fee (4%) | 56,000 | 15,342 |
| Total Cost of Ownership | 1,456,000 | 398,904 |
| Capital Investment | 756,000 | 207,945 |
| Net Profit | 994,000 | 272,603 |
💸 Rental Income Analysis
| Item | AED | USD |
|---|---|---|
| Annual Rent | 165,000 | 45,205 |
| Service Charges (12.5%) | 20,625 | 5,652 |
| Net Rent Per Year | 144,375 | 39,552 |
| Total Rental Income | 240,113 | 65,978 |
Total Return: AED 1,234,113 (USD 338,581)
CoC Return: 163%
ROIC: 163%
Price per Sqft at Sale: AED 1,749 (USD 479)
📊 Explanation of the Transaction
🏡 Purchase Phase:
- The property was purchased in November 2022 for AED 1,400,000.
- An additional DLD fee of 4% (AED 56,000) was added, making the total cost of ownership AED 1,456,000.
- The capital investment, consisting of 50% of the purchase price plus the DLD fee, amounted to AED 756,000.
⌛ Holding Period:
- The property was held for approximately 1.67 years, from November 2022 to July 2024.
💰 Rental Income:
- The property generated an annual rent of AED 165,000.
- Service charges were 12.5% per year, amounting to AED 20,625 annually.
- Net annual rent after service charges was AED 144,375.
- Over the holding period, the total rental income was AED 240,113.
🏷️ Sale Phase:
- The property was sold in July 2024 for AED 2,450,000.
- The net profit from the sale, after deducting the total cost of ownership, was AED 994,000.
📈 Return Analysis:
- The total return, including both the net profit and total rental income, was AED 1,234,113.
- The CoC return and ROIC were both 163%, demonstrating a highly profitable investment.
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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