Case Study 122
Smart Financing for Dubai Real Estate Investment
How TMRC Financing Broker helped a Russian finance professional maximize returns through strategic mortgage financing in Dubai's property market.
Residential & Investment Properties
Tailored financing solutions for primary market purchases.
Strategic Investment Planning
Maximize returns while maintaining financial flexibility.
Cash vs Mortgage Comparison
Detailed breakdown of investment outcomes with different approaches.
Enhanced Profitability
Higher returns on invested capital through strategic financing.
Case Summary
Client ABC, a finance professional from Russia, sought to invest in Dubai for both residential and investment purposes. After consulting with TMRC Financing Broker, they selected a prime property in the Primary Market, signing an agreement in February 2024.
Cash Purchase Challenges in Dubai
The Hidden Drawbacks of an All-Cash Property Purchase
ABC, a finance professional from Russia, planned to purchase a property in Dubai's Loci Residences using their entire savings. While buying a property outright with cash may seem like a straightforward decision, it came with unforeseen consequences.
Without leveraging any financing options, ABC's purchase resulted in no credit history—a critical factor in financial growth and future investments. Additionally, tying up all their savings in one property left ABC with limited liquidity and a disappointingly low profit margin.
The opportunity to multiply returns or use rental income strategically was missed, turning what could have been a high-potential investment into a restricted financial choice.
This scenario highlights the importance of considering smarter financing solutions to optimize property investments and ensure long-term financial flexibility.
Cash Purchase Breakdown
Total investment including statutory fees if purchased with cash.
| Item | Amount (AED) | Amount (USD) |
|---|---|---|
| Purchase Price | 478,230 | 130,000 |
| DLD Fee 4% | 19,129 | 5,200 |
| Agent Fee 2% | 9,564.60 | 2,604.04 |
| Trustee & Title Deed Fee | 4,490 | 1,222.44 |
| Total Investment | 511,414 | 139,000 |
| Current Price (Jul 2024) | 700,000 | 190,581.72 |
| Profit on Investment | 188,586 | 51,343.86 |
Mortgage Purchase (Through TMRC FB)
Lower upfront capital while preserving investment upside.
| Item | AED | USD |
|---|---|---|
| Downpayment & Expenses (Invested) | 133,510 | 36,349.23 |
| Bank Finance | 405,539 | 110,411.44 |
| Current Market Price (Jul 2024) | 700,000 | 190,581.72 |
| Minus Bank Finance | 405,539 | 110,411.44 |
| Profit on Invested Amount | 294,461 | 80,170.04 |
Investment Comparison
How mortgage financing dramatically improves returns on invested capital
Cash Purchase
Total Investment: AED 511,414
Profit: AED 188,586
Return on Investment: 36.9%
Mortgage Purchase
Total Investment: AED 133,510
Profit: AED 294,461
Return on Investment: 220.5%
Smart Investments, Smart Returns
When you invest in property in Dubai, you unlock a unique advantage: your property's rental income can cover your mortgage EMI. This means your investment not only grows in value over time but also pays for itself, giving you financial freedom and long-term profitability.
YOUR UNINVESTED AMOUNT REMAINS SAVED, GIVING YOU THE FLEXIBILITY TO EXPLORE OTHER OPPORTUNITIES WHILE YOUR PROPERTY WORKS FOR YOU
Vision to Reality
One step ahead
Turning Dreams into Reality
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