Case Study 124
Smart Financing for Dubai Real Estate Investment
How TMRC Financing Broker helped a Polish investor maximize returns through strategic mortgage financing in Dubai's property market.
Secondary Market Investment
Tailored financing solutions for secondary 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
A Polish investor sought to diversify their portfolio by acquiring a property in Dubai's secondary market. With expert guidance from TMRC Financing Broker, they finalized the purchase of a unit in Act One Act Two Tower 1 in August 2023.
The Pitfalls of an All-Cash Property Purchase in Dubai
The Hidden Drawbacks of an All-Cash Property Purchase
Mateusz, a Polish investor, decided to purchase a unit in Act One Act Two Tower 1 in Dubai by committing their entire savings. While opting for a cash purchase seemed straightforward and convenient, it unveiled several unforeseen challenges.
By not utilizing available financing solutions, Mateusz missed the opportunity to build a credit profile—a critical asset for future financial growth and diversified investment strategies. Additionally, tying up all their funds in a single property significantly reduced their liquidity, restricting their ability to seize other investment opportunities or manage unexpected financial demands.
Without leveraging a mortgage or financing option, the potential to amplify returns or strategically benefit from rental income was limited, resulting in a lower profit margin compared to financing-assisted investments.
This case highlights the importance of exploring financing solutions, such as those offered by TMRC Financing Broker, to maintain liquidity, enhance investment opportunities, and ensure long-term financial flexibility and resilience.
Cash Purchase Breakdown
Total investment including statutory fees if purchased with cash.
| Item | Amount (AED) | Amount (USD) |
|---|---|---|
| Purchase Price | 1,700,000 | 462,839.44 |
| DLD Fee 4% | 68,000 | 18,513.58 |
| Agent Fee 2% | 34,000 | 9,256.79 |
| Trustee Fee | 4,200 | 1,143.49 |
| Title Deed Fee | 290 | 78.95 |
| Total Investment | 1,806,490 | 491,832.25 |
| Current Price (Jan 2025) | 2,400,000 | 653,420.38 |
| Profit on Investment | 593,510 | 161,588.14 |
Mortgage Purchase (Through TMRC FB)
Lower upfront capital while preserving investment upside.
| Item | AED | USD |
|---|---|---|
| Downpayment & Expenses (Invested) | 459,160 | 124,983.35 |
| Bank Finance | 1,441,600 | 392,403.52 |
| Current Market Price (Jan 2025) | 2,400,000 | 653,420.38 |
| Minus Bank Finance | 1,441,600 | 392,403.52 |
| Profit on Invested Amount | 499,240 | 135,893.13 |
Investment Comparison
How mortgage financing improves returns on invested capital
Cash Purchase
Total Investment: AED 1,806,490
Profit: AED 593,510
Return on Investment: 32.9%
Mortgage Purchase
Total Investment: AED 459,160
Profit: AED 499,240
Return on Investment: 108.7%
Smart Financing, Profitable Results
Investing in property in Dubai comes with unique advantages, especially when leveraging financing options. For instance, the rental income generated from your property can often cover your mortgage payments, creating a self-sustaining investment.
THIS APPROACH NOT ONLY ENABLES YOUR PROPERTY TO APPRECIATE IN VALUE OVER TIME BUT ALSO ENSURES FINANCIAL INDEPENDENCE AND CONSISTENT RETURNS.
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