Education
Dashboard
Glossary
Stay
informed
with
alerts
for
account
activity
and
compliance
updates.
For
instance,
let's
say
you
invest
in
a
property
that
costs
AED
1,000,000,
and
there
are
additional
buying
expenses
of
AED
100,000.
Your
total
investment
amount
comes
to
AED
1,100,000.
Now, imagine the property is sold a few years later for AED 1,500,000 (after deducting selling costs). In this case, the capital appreciation would be AED 400,000, or 36.4% (calculated as AED 400,000 / AED 1,100,000).
Now, imagine the property is sold a few years later for AED 1,500,000 (after deducting selling costs). In this case, the capital appreciation would be AED 400,000, or 36.4% (calculated as AED 400,000 / AED 1,100,000).
For
example,
the
properties
on
our
platform
typically
offer
a
total
ROI
of
around
50%
over
5
years.
When
this
is
averaged
out
on
a
yearly
basis,
it
equates
to
an
annualized
return
of
approximately
10%.
To
illustrate,
consider
a
scenario
where
10
investors
jointly
own
a
property.
The
dividend
is
the
amount
each
investor
receives,
calculated
by
dividing
the
total
rent
generated
by
the
property
by
10
(after
deducting
all
relevant
costs).
For
example,
if
a
property
is
valued
at
AED
1,000,000
and
generates
an
annual
rental
income
of
AED
100,000,
the
gross
income
would
be
AED
100,000,
and
the
gross
yield
would
be
10%.
For
instance,
if
a
real
estate
fund
plans
to
purchase
a
property
for
AED
1,000,000,
and
the
transaction
costs
amount
to
an
additional
AED
50,000,
the
funding
target
would
be
set
at
AED
1,050,000.
To
illustrate,
consider
a
property
valued
at
AED
1,000,000
that
generates
an
annual
rental
income
of
AED
100,000.
If
the
annual
costs
associated
with
the
property
are
AED
25,000,
the
net
income
would
be
AED
75,000,
and
the
net
yield
would
be
7.5%.
For
example,
if
a
property
generates
AED
100,000
in
annual
rental
income,
this
amount
is
considered
the
gross
rental
income,
as
it
does
not
account
for
any
expenses
related
to
the
property.
For
instance,
if
a
property
generates
AED
100,000
in
gross
rental
income
and
has
associated
expenses
of
AED
30,000,
the
net
rental
income
would
be
AED
70,000.
This
is
the
amount
the
investor
would
receive
after
accounting
for
all
costs.
For
example,
if
a
property
is
purchased
for
AED
1,000,000
and
generates
an
annual
rental
income
of
AED
80,000,
the
rental
yield
would
be
8%
(calculated
as
AED
80,000
/
AED
1,000,000
*
100).
For
instance,
if
a
property
is
purchased
for
AED
1,000,000
and
is
expected
to
be
worth
AED
1,200,000
at
the
end
of
a
5-year
investment
term,
the
expected
appreciation
would
be
AED
200,000,
or
20%.
For
example,
if
a
property
is
expected
to
generate
a
total
return
of
50%
over
a
5-year
investment
term
(considering
both
rental
income
and
capital
appreciation),
the
projected
annual
return
would
be
approximately
10%
(calculated
as
50%
/
5
years).
For
instance,
if
a
property
is
expected
to
generate
a
rental
yield
of
30%
and
appreciate
by
20%
over
a
5-year
investment
term,
the
total
expected
return
would
be
50%
(calculated
as
30%
+
20%).
For
example,
a
residential
apartment
complex
may
offer
amenities
such
as
a
fitness
center,
landscaped
gardens,
and
a
children's
play
area
to
attract
tenants
and
command
higher
rental
rates.
For
instance,
when
purchasing
a
property,
investors
may
need
to
pay
stamp
duty,
land
registration
fees,
and
legal
fees
in
addition
to
the
property's
listed
price.
These
transaction
costs
can
add
a
significant
amount
to
the
overall
investment.
For
example,
if
a
property
is
rented
out
for
11
months
in
a
year,
its
occupancy
rate
would
be
approximately
92%
(calculated
as
11
months
/
12
months
*
100).
For
instance,
when
evaluating
an
investment
opportunity,
the
real
estate
crowdfunding
platform
may
provide
an
expected
rental
income
figure
based
on
the
property's
location,
size,
amenities,
and
the
prevailing
rental
rates
in
the
area.