Realtor Records — Issue #18 — Explaining ROI — the only thing an investor cares

Photo by Medienstürmer on Unsplash

To begin with we need to ask a simple question

What is So-called ROI?

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Why do the Investors love it?

When it comes to investors the only thing they care about is how much money they get in return for the amount they have invested especially when it comes to real estate. This also applies to other Investments.

When it comes to property investing in real-estate Dubai

When it comes to investing in properties in Dubai, you are told that for every purchase based upon the property value, you will gain up to 7% -8% in return, which is the rental income. but in reality, this isn’t the case.

If this is not accurate what is the actual ROI that I can expect to gain from my investment? How do I do the calculation?

When buying a property in Dubai apart from the purchase cost there are some additional fees you need to look out for such as 4% DLD, title deed fees, trustee office fees, and service charges.

How do we understand if this is a good deal or not?

well, I would say that Based on the current market scenario 5–6% is a very good deal. 5–6% ROI is still greater than the bank interest rates. not only that there is always market price appreciation in the long term. Also here in UAE there is no tax on the income you have earned unlike in various other countries there is income tax .anything you earn from the rental income is full on your own. How great is that!

IN CONCLUSION

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Mithun Suresh

Mithun Suresh

Investor, Trader and a life enthusiast